10. Hon Dr NICK SMITH (National—Nelson) Link to this
to the Minister of Energy
Has he received any reports that the price of electricity is the thing most worrying Grey Power members throughout the country, as stated by the national president of Grey Power, Graham Stairmand?
Hon DAVID PARKER (Minister of Energy) Link to this
I am aware of Grey Power’s concerns and accept that adequate and affordable heating is important for the elderly.
Hon Dr Nick Smith Link to this
Does the Minister agree with the statement made by Helen Clark to a Grey Power conference in April 1999 that superannuitants faced “a winter of misery” because of power price increases that were 3 percent, and what sort of winter is it for our elderly this year, who face power price increases of 10 percent?
I do agree with the comments the Prime Minister made then, which were made against the background of the slashing of the superannuation baseline for superannuitants.
Darren HughesCan the Minister tell the House what the Labour-led Government has done to assist low-income older people to meet their power bills?
The Government has restored the baseline for superannuitants that was cut by the previous Government, and has increased it further, pursuant to the confidence and supply agreement with New Zealand First this year. We have vastly increased the amount and eligibility criteria for the rates rebate scheme and have introduced a low fixed-charge option for those who use less that 8,000 kilowatts of electricity each year.
Hon Dr Nick Smith Link to this
How does he explain a 32.4 percent increase in power prices between 2000 and 2005, as compared with inflation over the same period of 12.5 percent and increases in power prices from 1995 to 2000 of 14 percent?
The main reason has been that Māui gas was running out. Until Māui gas ran out it was an artificial suppressant to the price of power, because the price of Māui gas, which set the market price of electricity, increased at half the rate of inflation. Because that gas was depleting, there was a need for more gas exploration to be done, and there was a need to encourage generation in electricity in all fields. Accordingly, it was necessary to remove price control from Māui gas, and that has been the cause of the price increases.
Peter BrownDoes the Minister accept it is distinctly feasible that the New Zealand First - Labour confidence and supply agreement item regarding the golden age card could, in fact, offer—
Gerry Brownlee
Ron MarkI raise a point of order, Madam Speaker. You have consistently tried to encourage order in the House. You have in the past consistently dealt with members who break the Standing Orders and interject on a member while he or she is asking a question. From right beside you, the booming voice of Gerry Brownlee came through the House midway through Peter Brown’s question, and no censure was made. I ask you to deal with that.
Madam SPEAKERCould I say something, please, Mr Brownlee? Thank you. I have been asking members, when both questions and answers are given, to respect the member who is speaking at that time. The odd interjection does not seem to me to impede the hearing of the question; it is a barrage that is offensive to everyone.
I raise a point of order, Madam Speaker. I think you need to let Mr Brown, who asked the question, know that asking a question about the non-appearance so far of the golden age card is not appropriate to the question on the sheet.
Well, it is quite wide of the mark—and we have had a couple of those today—but if the Minister would like to answer he should be very brief.
I raise a point of order, Madam Speaker. I am a little concerned now about our process, because that answer to a question may not have been heard. Are we to take it that the Government does not have the golden age card on its work programme for the foreseeable future?
Hon Dr Michael Cullen Link to this
No, the Minister of Energy gave a reply, and strangely enough the golden age card is not a ministerial responsibility of the Minister of Energy.
I raise a point of order, Madam Speaker. I seek clarification of the ruling you have just given. Are you now saying, contrary to the fact that in the past you have thrown members out of the House for interjecting on their own on a person who is asking a question, that the odd interjection during the asking of a question, as long as it is not part of a barrage, is acceptable? Is that a correct understanding of what you have said?
I have asked all parties—and the member may like to consult with New Zealand First’s whip—to get a discussion going at the Business Committee on how we can, in fact, get more order in the House. It is not the rigid enforcement of rules that is important; it is ensuring that both questions and answers can be heard.
Hon Dr Nick Smith Link to this
When we have a chorus as wide as Grey Power, the chambers of commerce, Business New Zealand, the Parliamentary Commissioner for the Environment, even Government sweetheart Colin James, and even the Government’s own power companies like Meridian Energy, Mighty River Power, and Genesis Energy all damning the Government’s energy policies, will the Minister accept that this area is just a shambles?
No, I will not. I also make the point, in relation to price increases, that some sectors have not actually had real price increases. Notably, the commercial and industrial tariffs have, in real terms, stayed about static. There has been quite a significant increase in residential prices, but that is not seen in the industrial and commercial tariffs in the market model.
Hon Dr Nick Smith Link to this
I seek the leave of the House to table the electricity price index from 1995 to 2005, showing an increase in power prices of 32.4 percent since Labour came to office.