10. CHARLES CHAUVEL (Labour) Link to this
to the Minister of Energy and Resources
Does he stand by his statement 9 weeks ago that “gas will be a big part of New Zealand’s energy mix in the future”?
Hon GERRY BROWNLEE (Minister of Energy and Resources) Link to this
Yes. In a speech on 24 February I also said “New Zealand’s electrical energy future will rely more on wind, hydro and geothermal. Gas will bridge us to that future.” I stand by both those statements.
Does the Minister agree with the Electricity Commission’s finding last week that even if there is a big new gas discovery in New Zealand, the price of gas will “be very vulnerable to the international LNG price and the $US/$NZ exchange rate”?
Hon GERRY BROWNLEE Link to this
I do not necessarily agree with the position that the Electricity Commission has taken with regard to future gas price, nor do I accept that there will necessarily be the importation of liquefied natural gas into New Zealand. It is interesting to note, though, that estimates of gas reserves in New Zealand regularly change. Indeed, the previous Minister, David Parker, said in 2006 that when it comes to “forecasting gas demand and supply, there is significant uncertainty around a range of factors on both the demand and supply sides.” I agree with him.
Peseta Sam Lotu-Iiga Link to this
Has he seen any reports about the importance of gas to our electricity system?
Hon GERRY BROWNLEE Link to this
Yes. I have read a speech from the previous Minister of Energy, the Hon David Parker—
Hon GERRY BROWNLEE Link to this
I tell you what: it would be a good idea if Charles Chauvel spent a bit of time with Mr Parker, because he said in February 2008 “Fossil fuels, especially gas, will continue to have [an important] role for some time to come. They provide security, versatility, and stability in the delivery of electricity.” I have also seen a speech from Mr Parker in 2006 in which he said “We”—that is, the Labour Party—“accept … that some thermal power from fossil fuels will be needed in our energy system for the foreseeable future,”. I think Mr Chauvel should spend a lot more time talking to Mr Parker.
Mr SPEAKERDoes the Minister agree with energy analyst Molly Melhuish’s calculation that allowing a linkage to the international price of gas could see household power bills jump by more than $300 a year; if so, how does he reconcile his calls for low energy price rises with his promotion of a gas-fired electricity future for New Zealand?
Hon GERRY BROWNLEE Link to this
It is unfortunate that the member does not listen, firstly, to me, and then, as a back-up, to his own colleagues. You see, it is quite evident that gas will be a bridge fuel for the future. It is abundantly clear from everything I have said that we will have greater reliance on renewable energy, and that gas will be sort of the icing on the cake. I might note that due to the previous Government’s absolute failure to look after the transmission infrastructure, right now North Islanders are almost totally dependent on thermal generation, because the Cook Strait cable is out. That Government failed to look after the infrastructure of this country, and it is hopeless for its members to start saying they have clear ideas of where the future lies.
Does the Minister stand by his statement 9 weeks ago that “The Government is currently considering the best way of carrying out the update of the [New Zealand] Energy Strategy and I will make further announcements about this in the coming weeks.”; if so, how many more coming weeks will have to pass before he makes his further announcements; if not, is it because his Government has no consistent energy policy?
Hon GERRY BROWNLEE Link to this
I do stand by my statements, and the member has a lot of exciting things to look forward to.