6. Hon NANAIA MAHUTA (Labour—Hauraki-Waikato) Link to this
to the Minister of Energy and Resources
Does he stand by his statement that when facing power price increases consumers should “shop around”?
Hon PANSY WONG (Associate Minister of Energy and Resources) Link to this
Yes. Indeed, consumers are doing just that. In the month of September alone, 30,000-plus consumers switched suppliers, so I encourage consumers to check out the Powerswitch website. Once a household profile has been entered, a list of energy suppliers and their prices will be displayed in that geographical area.
Hon Nanaia Mahuta Link to this
In advising consumers to shop around, what advice, then, does the Minister have for a New Plymouth consumer like Mrs Joann Farley, who got a nasty surprise from Genesis Energy, which charged her 15 percent GST on her power bill for the September period?
I think the Minister of Revenue, the Hon Peter Dunne, has dealt with that very well in the House for 2 days in a row. The Government has made it very clear that in the transitional period it should have been 12.5 percent.
Hon Nanaia Mahuta Link to this
Given that response, what advice does the Minister have for another New Plymouth consumer, Mr Gowan Duff, who got an even nastier surprise from Genesis Energy, which charged him 15 percent GST on his power bill for the months of August and September?
As I said, I encourage consumers and constituents to shop around. If the member is serious, she could advise the consumer about Powerswitch. An average small household, according to Consumer New Zealand, could save up to $442 and a large household could save up to $1,000, so consumers need to get on to the Powerswitch website. One of the energy companies, called Pulse Energy, is actually door-knocking on households—
Hon Darren Hughes Link to this
I raise a point of order, Mr Speaker. I have listened as carefully as possible to the answer being given to us. My colleague the Hon Nanaia Mahuta asked about the situation of consumers living in New Zealand being forced to pay a tax imposed by the Government. This is not a question about switching between power companies; this is about a Government-imposed tax. She asked about a rate of 15 percent being applied to 2 months—August and September—and what we are hearing does not relate—
Mr SPEAKERThe member is getting to the substance of the question now. The question asked what the Minister would say to a person somewhere in New Zealand who received an account for the months of August and September with GST charged at 15 percent. The Minister was telling the House what she would say to that consumer. Far be it from the Speaker to judge the matter. I think, though, we had heard sufficient.
Hon Nanaia Mahuta Link to this
Given that response, who will door-knock on the doors of Mrs Farley and Mr Duff and tell them who will benefit from the backdated hike in GST on power of 2.5 percent for the August-September period: the Government or the power companies?
If Labour is really as concerned as that, I hope some hard-working Labour members will go door-knocking and give them that very sensible message.
Hon Nanaia Mahuta Link to this
Why have the Minister and his Government failed to ensure that people are not hit unfairly, like Mrs Farley and Mr Duff, by the backdated hike in GST for the months of August and September?
The National-led Government has done everything. We have made things very clear in respect of the power-switching option. But we have done more than that: the Government made sure that when GST increased there was a broad-range tax cut, which means that 73 percent of New Zealand income earners pay only up to 17.5 percent, and that most households are $25 better off. So this Government is doing something to make sure that people do not suffer like they did under Labour, when there was a 72 percent power price increase—72 percent.
Hon Trevor Mallard Link to this
I raise a point of order, Mr Speaker. I noticed that you were indicating to the Minister to wind up. I think it is really important that you are seen to be neutral, so when the Government is damaging itself you should let it go on rather than stop it.
Hon Nanaia Mahuta Link to this
Given the lack of an answer, I seek leave to table a document that shows that a consumer was charged GST of 15 percent for their September power-billing period.
Hon Nanaia Mahuta Link to this
I seek leave to table a document that shows that a consumer was charged a GST rate of 15 percent for their power-billing period of August and September.