2. Hon Dr NICK SMITH (National—Nelson) Link to this
to the Minister for State Owned Enterprises
Does he agree with the Minister of Energy’s statement on National Radio that “We’re spending five times as much on capital works in the transmission area as was being spent a few years ago, five times as much every year”, and does he agree with the statement of the Prime Minister in the House that “under the current Government, Transpower has been investing, on average, around $300 million per annum in its system.”?
Hon TREVOR MALLARD (Minister for State Owned Enterprises) Link to this
Yes and yes, because I have read the whole quote from the Prime Minister, which is prefaced by the words: “The advice I have received today is …”. [ Interruption] As it turns out, the advice the Prime Minister had been given was incorrect, because it included the word “average”—
Madam SPEAKERIt was impossible to hear the Minister’s response. As members know, interjections are permitted but barracking is not. All members in the House are entitled to hear both the questions and the answers.
Hon TREVOR MALLARD Link to this
It was incorrect because it included the word “average” instead of contrasting the low of $52 million with a rapid upward trend in spending. As acting Minister at the time I take responsibility for the incorrect advice, and the Prime Minister has made her displeasure clear to me.
Hon Dr Nick Smith Link to this
Can the Minister explain to the House since when the words “average”, “per annum”, and “every year” apply to a single year, and how can he say that this was the incorrect advice from Transpower when it is blatantly obvious from its annual reports that the Prime Minister’s figures were incorrect?
Shane JonesHow much has the average level of capital spending by Transpower increased under the current Government, and how much does the Minister expect it to increase in the near future?
Hon TREVOR MALLARD Link to this
I am advised that the average capital spend by Transpower in the 6 years before Labour became the Government was an embarrassingly low $78 million per year. Based on current capital planning, I expect the average spend by Transpower to increase to at least $500 million per annum over the next 6 years.
Hon Dr Nick Smith Link to this
Why, if the Government has been effectively investing so well in Transpower, do the annual reports show that in 6 of the last 7 years, depreciation has exceeded new investment so that the infrastructure assets have actually gone down in value by $106 million since Labour became the Government in 1999?
Hon TREVOR MALLARD Link to this
Because planning of major projects takes some time. It did not occur in the 1990s.
Hon Dr Nick Smith Link to this
Why does the Minister not just come clean and say that the Prime Minister’s spin machine got completely out of control last week such that she and her Minister would tell the public anything to be able to avoid responsibility—any responsibility—for the blackout in Auckland last week?
Hon Bill EnglishHon TREVOR MALLARD Link to this
—for the incorrect information that was given to the Prime Minister, and it would be a pity if Bill English did not take responsibility for some of his errors. Of course, the long-term question—
I remind members again, interjections are permitted, but not barracking, otherwise the rest of the members cannot hear the answer.
Hon TREVOR MALLARD Link to this
The people who have put the long-term future of Auckland at risk have been Judith Collins and Paul Hutchison in the way they have wound farmers up for the last 12 months.
Rt Hon Winston Peters Link to this
I raise a point of order, Madam Speaker. We are on to question No. 2 today. I want to know whether there are special rules in this House for National members in this respect. They are making one hell of a din. They have done it since Parliament was called together. They are getting away with it day after day. Frankly, as someone who has been here a long time, I do not think they have any more rights than I or my colleagues have. The noise coming from the so-called National front bench is simply unacceptable, and someone should be thrown out of the House for it.
That was not a point of order but I do note what the member has said. I thought the barracking, in fact, had got better last week, but already on the second question—the member is right—it is very, very difficult for people to hear the answers. Would members please control themselves. Interjections are, of course, permitted but not the barracking so other members are denied the right to be able to hear the answer.
Hon Dr Nick Smith Link to this
Why should the public have confidence in Transpower when only a week after Auckland’s blackout, a Transpower failure yesterday at 12.50 p.m. caused a blackout in Rotorua’s central business district, affecting 12,000 businesses and homes, and our Transpower grid emergency also yesterday, at 5.40 p.m., caused a blackout for up to 3 hours, affecting 6,000 homes in Tauranga; and how many more blackouts will we need before this Government will accept that the transmission grid is overworked due to underinvestment by his Government?
Hon TREVOR MALLARD Link to this
I accept all of that, other than the words “his Government”. The member should look in a mirror.
Hon Dr Nick Smith Link to this
Why does the Minister’s Government not just accept the obvious facts that electricity use has increased 20 percent overall since 1999, and by more in areas like Auckland, Nelson, Bay of Plenty, and Christchurch, that investment in electricity infrastructure has not kept up with that growth, and that is why the lights keep going out?
Hon TREVOR MALLARD Link to this
I do accept that economic growth—during that period—has been stronger than predicted, and preparation did not occur in the 1990s for that to happen.
Hon Dr Nick Smith Link to this
I seek leave of the House to table the list of transmission investments for each of the years from 1995 to 2005, showing that in the 6 years of a Labour Government, investment was actually less—even in raw dollar terms—than the average in the previous 6 years.
Hon Dr Nick Smith Link to this
I seek leave of the House to table from Transpower’s annual accounts its total infrastructure assets that show that since 1999 the asset base of Transpower has dropped by $106 million.