8. GERRY BROWNLEE (National—Ilam) Link to this
to the Minister of Energy
Does he stand by his statement made to the national power conference that “There is a degree of wishful thinking and exaggeration around how close clean-coal technology really is.”; if so, why?
Hon TREVOR MALLARD (Minister for the Environment) Link to this
Yes; and to complete the Minister’s quote: “If the Government was to apply the same brave assumptions to new technology renewables as are relied upon by some coal proponents, we would be pilloried.”
Is it the Minister’s usual practice to rely on New Scientist magazine editorials to guide his thinking in energy matters, rather than the advice of experts such as the chief executives of the Government’s own energy companies; and is that further evidence of the Minister having “less thirst for knowledge than his predecessor and a resistance to discussing matters of detail”, which was stated recently by a former electricity commissioner, Roy Hemmingway?
Hon TREVOR MALLARD Link to this
Although the acting Minister might have a different view of Mr Hemmingway’s very generous comments about him, he thinks Mr Hemmingway was clearly wrong in this instance. The Minister of Energy has looked extensively at this issue, and, basically, anyone who can read knows that we will not have full sequestration of carbon out of those plants in the next 3 to 5 years as has been predicted by some foolish people in the coal industry in New Zealand.
Can the Minister then tell us why his associate the Minister for State Owned Enterprises has approved so much funding being spent by New Zealand energy companies on exactly the issue of carbon dioxide sequestration from coal?
Hon TREVOR MALLARD Link to this
I am advised that my colleague the Minister for State Owned Enterprises does not direct on operational matters, but he has supported the purchase of long-term supplies of lignite in order to get in front of the changes that are occurring in energy in the world. One could be foolish and say we will just leave it there, we will not secure the future, and we will not get in front of the technology, which is what the member seems to be implying, or we could take a long-term approach and secure what I understand will be something like 400 years worth of energy supply in New Zealand when the technology is cracked.
Can the Minister confirm that the diesel-fired plant at Whirinaki had to operate six times during February, burning over 1 million litres of diesel, and does the use of this so-called reserve generator, which is meant to be used in a one-in-60-year dry year event, indicate the huge gap between the Government’s stated renewable energy goals and the very real increase in reliance on thermal generation that has occurred since the first day Labour became the Government?
Hon TREVOR MALLARD Link to this
I am glad that the member has corrected his assertion from 1 million litres a day to 1 million litres in February. He cannot seem to make up his mind between a day and a month. It might just be a minor fact or trifle to that member, but my view is that running the Whirinaki plant in the short term, during peak periods, in order to conserve water in the South Island, was a wise thing to do.
Can the Minister confirm that the Electricity Commission was entirely the creation of the Labour Government, and that it is staffed primarily by people with close Labour ties, such as a former economist to Michael Cullen, Peter Harris, a former Labour deputy leader, David Caygill, a former Labour Cabinet Minister, Stan Rodger, and a former Labour candidate, David Close; if so, when will his Government apologise to the New Zealand people for telling them that this organisation would secure supply, because their supply has never been more tenuous than it is at the moment?
Hon TREVOR MALLARD Link to this
Yes, I can confirm that the commission was set up by the Labour Government. I can confirm that the general manager of the organisation is someone who is very close to the deputy leader of the National Party; if one was suggesting that there was cronyism, that appointment certainly would not have been made. That member should go outside occasionally during the weekend in the South Island, see the rain, and know that the situation is not tenuous.
Peter BrownNoting the answers to the earlier questions, is the Minister aware that, on a global basis, 40 percent of electricity is generated from coal; if he is aware of that, would he confirm that it is absolutely essential that we address the issue of carbon dioxide emissions from coal, in order to solve the greenhouse gas problems?
Hon TREVOR MALLARD Link to this
The member is absolutely right. It is essential both internationally and for the long-term future of New Zealand. It is my opinion that New Zealand cannot be a leader in this technology. A number of other countries, including Australia, will have a leadership role in the development of the sequestration technology, and the hydrogen fuel cell technology, which will almost certainly also flow from the use of coal. We do not need to lead in that area, but we will be major beneficiaries.