Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Government getting lion's share of crisis windfall

Tony Ryall National Commerce Spokesman

Pansy Wong National Energy Spokesperson

16 August 2001

Government getting lion's share of electricity crisis windfall profits

National MPs Tony Ryall and Pansy Wong say the Government is going to desperate lengths to conceal the fact that State-Owned companies will get the lion's share of the enormous profits created by the electricity crisis. Over $1billion extra has been paid for electricity since 1 June 2001.

"In Parliament today we were forced to sit through a farce after SOE Minister Mark Burton stole himself away from Parliament to avoid facing scrutiny on the degree to which the Government is profiting from the crisis," Mr Ryall said.

"The facts prove conclusively that Government owned companies dominate electricity generation, the national grid, the wholesale market and the retail market.

"In terms of electricity generation, companies owned by the Government control 62% of the market - with Meridian Energy having a 32% share, Genesis Power a 17% share and Mighty River Power a 13% market share.

"The lines companies are the only sector the Government doesn't dominate. Those companies are unregulated monopolies due to Labour having voted down National's price control bill in 1999. Those monopoly companies have profited by at least $200 million so far as a result of Labour blocking that legislation.

"In terms of the retail market, the companies which sell electricity to most households and businesses, the Government is creaming the profit, with a 57% share of the market. Genesis Energy controls 26%, Meridian Energy 12%, Mercury Energy 17% and First Electric 2%. Those are all State-Owned companies, and they are bleeding their customers dry while the Government ducks questions about the real size of the profits.

"While people shiver in their homes trying to save power, Government Ministers are sleeping snug and warm, safe in the knowledge that their State-Owned companies dominate the industry, and are raking in windfall profits created by this power crisis.

"People have vented their fury at seemingly faceless electricity companies, but those companies do have a face - and it is the Government's. Every time people see Pete Hodgson on those holier-than-thou TV ads for conserving power, they should remember that his Government is raking in enormous profits as a result of this power crisis," Tony Ryall and Pansy Wong said.

Ends

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Peters/Ardern Triumph

There are a lot of good reasons to feel joyful about this outcome. It is what so many young voters – the best hope for the country’s future – wanted.

Far more important than the implications for the Economy Gods ( is the dollar up or down? ) last night’s outcome will also mean many, many vulnerable New Zealanders will have a better life over the next three years at least.

Yet the desire for change was in the majority, across the country..>>>More


Reaction

Labour on its agreement |Peters: Post-Election Announcement Speech | Greenpeace “cautiously hopeful” about new Government | ACT - Madman on the loose | E tū ecstatic | Chamber welcomes the outcome | Greens on their joining Govt | EDS welcomes new govt | Immigrant groups worry | Feds ready to engage new coalition government | Labour Ministers of the Crown announced

 

Climate: Increasing Greenhouse Emissions Hit NZ

New Zealand is seeing impacts of excess greenhouse gas emissions in our climate and oceans, according to the latest national report from the Ministry for the Environment and Stats NZ about the state of the atmosphere and climate…More>>

ALSO:


Wellington.Scoop: Arrests At Blockade Of "Weapons Expo"

“We encourage people in Wellington to get down to the Westpac Stadium now for a day of awesome peace action. There will be plenty of food, music and activities to keep us sustained through the day.” More>>

ALSO:

Rorschach Restructuring: PSA Taking Inland Revenue To Court Over Psychometrics

The Public Service Association will be seeing Inland Revenue in Employment Court over its intention to psychometrically test employees reapplying for their roles at the department as part of its controversial Business Transformation restructuring plan. More>>

ALSO:

Nuclear Disarmament: Nobel Peace Prize 2017 Awarded To ICAN

Congratulations from iCAN Aotearoa New Zealand to international iCAN, the other iCAN national campaigns and partner organisations, and the countless organisations and individuals who have worked so hard for a nuclear weapons-free world since 1945. More>>

ALSO:

Expenses: Waikato DHB CEO Resigns

An independent inquiry has identified that Dr Murray had spent more than the agreed $25K allocated for relocation costs, and other unauthorized expenses involving potential financial breaches of the chief executive’s obligations. More>>

ALSO:

Wellington.Scoop: Sad About The Trolley Buses?

The Regional Council’s MetLink is today spending money to tell us that it really loves Wellington’s trolley buses, even though they’re all being taken off our roads by the end of this month. More>>

ALSO:

Post-Election: Preliminary Coalition Talks Begin

New Zealand First will hold post-election preliminary discussions in Wellington with the National Party tomorrow morning and the Labour Party tomorrow afternoon. More>>

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election