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


Govt improves investment regime for transmission

Hon David Parker
Minister of Energy
Hon Lianne Dalziel
Minister of Commerce

7 August 2006
Media statement

Government improves the investment regime for transmission and distribution

Energy Minister David Parker and Commerce Minister Lianne Dalziel today announced two government policy statements to encourage investment in infrastructure.

"The first statement amends the Government Policy Statement on Electricity to emphasise the strategic importance the government attaches to timely investment in transmission infrastructure," David Parker said.

It follows record electricity demand on the grid, a significant transmission outage in Auckland and delays in decisions on Transpower’s proposed new line into Auckland.

The amendments are designed to:

- emphasise the importance of adequate transmission, including its ability to cope with extreme events

- better provide for diversity of supply routes, especially for major cities

- ensure that the grid facilitates competition in generation and retail, by minimising transmission constraints

- ensure that transmission planning supports the government’s goal of facilitating renewable energy, and reducing greenhouse gases

- emphasise that, to the extent possible, grid upgrade plans should be comprehensive and considered in the context of long term plans

- allow Transpower to recover the reasonable costs of acquiring land corridors in advance of approval of the detail of upgrade plans.

The proposed amendments to the Government Policy Statement on Electricity (GPS) are made under the Electricity Act. The Electricity Commission is required to give effect to the statement. The Act requires the Minister to consult with the Electricity Commission, which will be done over the next few weeks. After considering any comments by the Commission, a statement will be finalised and gazetted.

The second statement is a statement of government’s economic policy by the Minister of Commerce under s 26 of the Commerce Act. The s26 statement focuses on the importance of regulated businesses, like Transpower and electricity lines businesses, investing in new lines and other infrastructure.

“It is important that consumers are protected from excessive pricing by businesses that face little or no competition, but it is also vital that businesses have the confidence and the incentives to make new investments”, Lianne Dalziel said.

The s26 statement to the Commerce Commission is made under the Commerce Act and will be gazetted shortly. The Commission is required to have regard to the statement. The statement focuses on businesses that are subject to price control under Parts 4, 4A and sections 70-74 of Part 5 of the Commerce Act.

“I have also announced a review of Parts 4 and 5 of the Commerce Act. I expect to make announcements shortly on the scope of the review, but clearly it will include considering whether any amendments to the Act are desirable to reinforce the Government’s policy objectives on investment in infrastructure”, Lianne Dalziel said.

As the Minister indicated in June, the Review will not include a consideration of Part 4A of the Commerce Act, which relates specifically to the control of electricity lines businesses, and which have been delegated to the Minister of Energy.


The proposed amendments to the Government Policy Statement on electricity and the Section 26 statement are available at:



© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines


Also, Loan Interest: Productivity Commission On Tertiary Education

Key recommendations include better quality control; making it easier for students to transfer between courses; abolishing University Entrance; enabling tertiary institutions to own and control their assets; making it easier for new providers to enter the system; and facilitating more and faster innovation by tertiary education providers... More>>


Higher Payments: Wellington Regional Council Becomes A Living Wage Employer

Councillor Sue Kedgley said she was delighted that the Wellington Regional Council unanimously adopted her motion to become a Living Wage employer, making it the first regional council in New Zealand to do so. More>>


Scoop Images:
Dame Patsy Reddy Sworn In As Governor-General

This morning Dame Patsy Reddy was sworn in as the New Zealand Realm’s 21st Governor-General. The ceremony began with a pōwhiri to welcome Dame Patsy and her husband Sir David Gascoigne to Parliament. More>>


Ruataniwha: DOC, Hawke's Bay Council Developer Take Supreme Court Appeal

The Department of Conservation and Hawke's Bay Regional Investment Company (HBRIC) are appealing to the Supreme Court over a conservation land swap which the Court of Appeal halted. More>>


With NZ's Marama Davidson: Women’s Flotilla Leaves Sicily – Heading For Gaza

Women representing 13 countries spanning five continents began their journey yesterday on Zaytouna-Oliva to the shores of Gaza, which has been under blockade since 2007. On board are a Nobel Peace Laureate, three parliamentarians, a decorated US diplomat, journalists, an Olympic athlete, and a physician. A list of the women with their background can be found here. More>>

Gordon Campbell: On The Key Style Of Crisis Management

At Monday’s post Cabinet press conference Key was in his finest wide- eyed “Problem? What problem?” mode. No, there wasn’t really a problem that top MPI officials had been at odds with each other over the meaning of the fisheries policy and how that policy should be pursued... More>>


Mt Roskill: Greens Will Not Stand In Likely Post-Goff By-Election

“The Green Party’s priority is changing the Government in 2017, and as part of that we’ve decided that we won’t stand a candidate in the probable Mt Roskill by-election... This decision shows the Memorandum of Understanding between Labour and the Green Party is working." More>>


Get More From Scoop



Search Scoop  
Powered by Vodafone
NZ independent news