8. Hon Dr NICK SMITH (National—Nelson) Link to this
to the Minister of Energy
Does he agree with the statement by Keith Turner, Chief Executive of Meridian Energy, on Campbell Live, Monday 14 November, that “we have not kept up with the investment programme that transmission requires.” and “we are running just too close to the wind in this country, particularly on the transmission front.”; if so, who is responsible?
Hon DAVID PARKER (Minister of Energy) Link to this
This Government believes that New Zealand needs significant investment in transmission capacity. In conjunction with Transpower and the Electricity Commission, we are addressing the issue. Transpower is currently spending over $100 million to upgrade parts of the grid, and also has advanced plans to spend more than $1 billion on major upgrades of lines into Auckland and elsewhere.
Hon Dr Nick Smith Link to this
Can the Minister simply answer the question of whether he agrees with the statement made by Dr Turner, who said further: “The New Zealand electricity grid is so overworked that lines cannot be taken out of action for servicing. That is unheard of in the Western developed world.”? Does he agree with that statement made by Dr Turner and with his earlier statements; if so, who is responsible for our transmission system—
Hon Trevor Mallard
Madam SPEAKERMinisters are, the same as members, on their last warning for interjecting during a question. Please continue.
I am sorry but I did not hear that interjection, at all. People do talk. The other was a clear interjection, however.
Hon Damien O'Connor Link to this
I raise a point of order, Madam Speaker. I did interject, but it was after the member had finished his question.
Well, maybe you took a long pause. I apologise to the member; I had thought he had finished. I certainly heard the first interjection, but I did not hear the second. If the member said that he did not make an interjection when you were asking the question, I will take his word for it. But I did hear the other interjection, which did occur then.
Hon Dr Michael Cullen Link to this
I raise a point of order, Madam Speaker. If we are going to have points of order, then let us also note that Mr Brownlee was interjecting while you were making a ruling, which is also out of order.
Yes, I did note that. Mr Brownlee, may I say that you are on your last warning for interjecting when the Speaker is speaking. Thank you.
Hon Dr Nick Smith Link to this
Does the Minister also agree with this statement made by Dr Turner: “The New Zealand electricity grid is so overworked that some lines cannot be taken out of action for servicing. That is unheard of in the Western developed world.”, and does that statement not confirm gross neglect by the Labour Government of our electricity network?
I am not aware whether some of the words attributed to Dr Turner are embellishments made by the member, or were said, but I do repeat that the Government does accept there is a significant need for investment in transmission capacity.
Hon Dr Nick Smith Link to this
I seek leave to table the direct quote from Dr Turner that was reported in the New Zealand Herald, which contained the exact words I used in my supplementary question.
Hon Dr Nick Smith Link to this
I raise a point of order, Madam Speaker. I am left in an impossible position. The Minister refuses to answer my question by saying he is not sure of the source of the comment from the chief executive of New Zealand’s largest electricity company. I then seek leave to table the document that verifies it, but I am denied leave. We are in an impossible position whereby, effectively, the Minister is simply trying to avoid responsibility for his portfolio.
Hon Dr Michael Cullen Link to this
By way of a solution, the member can now ask another supplementary question, if he wishes.
That is true. But, ruling on the point, as I heard the Minister’s answer, he said he was unsure about the attribution, but he then went on to address the question. So I would ask the member to ask another question if he is not satisfied.
Hon Dr Nick Smith Link to this
Why will the Minister not just level with Parliament and the public of New Zealand and admit that he has inherited a mess from Ministers Mallard and Hodgson, when Treasury says there is a problem, in its briefing for the incoming Government, when his own ministry says there is a problem, and when Dr Turner says that there is a problem—or does he intend just to stick his head in the sand until the lights go out?
Jeanette Fitzsimons Link to this
Can the Minister assure the House that the process set in place by the previous Minister and already under way will continue—namely, that the Electricity Complaints Commissioner will fully investigate whether investments in direct use of gas, local biomass fuels, and energy efficiency would be a more cost-effective way of ensuring that energy services are secure in Auckland than big, new transmission investments?
Maryan StreetIn the light of his previous answers, why is electricity use growing, and what is he doing to ensure that investment in transmission capacity, which he referred to earlier, will meet future demand?
We have had 6 years of very strong economic growth—amongst the highest in the OECD—and this has led to increased electricity use. So it is a consequence of success. But in terms of investment in transmission capacity, this Government has established the Electricity Commission to ensure that the level of investment in transmission is timely, adequate, and necessary.
Hon Dr Nick Smith Link to this
Why should the House believe that the investment in transmission infrastructure will be timely, as he has just said, when after the 2001 power crisis the Government said it was all fixed, when after the 2003 electricity crisis the Government said it was all fixed, and when now, in 2005, Treasury, his own ministry, and the chief executive of New Zealand’s largest State electricity company are saying that our electricity infrastructure is “unheard of in the Western developed world” in terms of its state of maintenance?
The member shows his lack of understanding of these issues. The problems in the years that the member mentioned related to the amount of water and, therefore, electricity able to be generated, not to transmission constraints.
Hon Dr Nick Smith Link to this
Why does the Minister say I am overstating the problem, when Dr Keith Turner, who has a PhD specifically in high-voltage transmission systems, is employed by his Government to be in charge of the largest generator, and has 30 years of experience in the electricity industry, says that the grid is overworked, and that the situation in New Zealand is unheard of in the Western developed world?