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Govt's Sham Fix On Electricity Crisis Is Exposed

Gerry Brownlee MP
National Party Energy Spokesman

02 October 2003

Govt's sham fix on electricity crisis is exposed

"The Government's band-aid solution to this year's electricity crisis has now been exposed as a white wash," according to National Party Energy spokesman Gerry Brownlee.

His comments follow warnings from state-owned power company Genesis that electricity being generated from hydro lakes is at only half the level required to avoid another power crisis next winter.

Genesis made the claim during the National Party backed commerce committee inquiry into the electricity industry.

"What the inquiry is also showing us is that the Government's plan to pay for 'reserve' generation capacity is not an effective long-term answer," Mr Brownlee.

"The overwhelming message we're getting is that more base generation is needed to address what the Electricity Network Association describes as 'low investment and inadequate back-up'.

"Electricity Network Association chairman Warren Moyes has also attacked the Government for a 'lack of forward-looking policies' saying there's a conspicuous absence of 'policy that mobilises the full resources of the industry to address critical investment needs.'

"It was about this time last year that electricity generators started warning the Government of the potential for a looming crisis.

"In 2002 Pete Hodgson ignored them and accused the National Party of scaremongering - let's hope he takes it more seriously this year," says Mr Brownlee.

ENDS


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