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


Vested interests should not dictate policy

27 March 2008

Petroleum industry vested interests should not dictate policy

Claims that electricity prices will rise as a result of the Government's 90 percent renewable electricity target are self-serving and based on inaccurate analysis the Green Party says.

The petroleum exploration industry is basing its claims on a report it commissioned and released today.

"It is not surprising that the petroleum exploration industry PEPANZ is attempting to lobby the Government to protect its financial interests - regardless of the cost to the public," Green Party Co-Leader Jeanette Fitzsimons says.

"PEPANZ is concerned that the 90 percent renewable electricity policy in legislation currently before the House will limit the market for gas and so deter exploration, so it is to be expected that the report's conclusions have come out in favour of the petroleum industry.

"It is astonishing, however, that the Centre for Advanced Engineering in Canterbury has let itself be captured by these commercial interests by not just undertaking the research for them, but publicly backing their attack on Government policy. "EECA, Ministry of Economic Development and the Electricity Commission conducted their own robust analysis before the policy was agreed to which showed the 90 percent renewable energy target will have positive effects for the country. "The PEPANZ report 'Analysis of the Effects of the Renewable Energy Targets on the Gas Industry' claims that electricity prices will rise by up to 50 percent as a result of this policy, though the analysis suggests only 15 percent. However even that is based on faulty assumptions, such as:

* Gas would have to be held in readiness to back up wind power when the wind was not blowing. In fact, back up for wind would be through holding back water in the hydro system and the Electricity Commission has just reported that there are no structural issues around accepting a much higher proportion of wind into the grid.

* The analysis is based on a $15/tonne carbon price which is way out of date. The Government's analysis puts the carbon price at $25/tonne, and this is now regarded as medium to low."


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Life And Times Of Peter Dunne

In the end, Mr Pragmatic calmly read the signs of impending defeat and went out on his own terms. You could use any number of clichés to describe Peter Dunne’s exit from Parliament.

The unkind might talk of sinking ships, others could be more reminded of a loaded revolver left on the desk by his Cabinet colleagues as they closed the door behind them, now that the polls in Ohariu had confirmed he was no longer of much use to National. More>>


Gordon Campbell: On Labour’s Campaign Launch

One of the key motifs of Ardern’s speech was her repeated use of the phrase – “Now, what?” Cleverly, that looks like being Labour’s response to National’s ‘steady as it goes’ warning against not putting the economic ‘gains’ at risk. More>>


Lyndon Hood: Social Welfare, Explained

Speaking as someone who has seen better times and nowadays mostly operates by being really annoying and humiliating to deal with, I have some fellow feeling with the current system, so I’ll take this chance to set a few things straight.. More>>


Deregistered: Independent Board Decision On Family First

The Board considers that Family First has a purpose to promote its own particular views about marriage and the traditional family that cannot be determined to be for the public benefit in a way previously accepted as charitable... More>>


Transport Policies: Nats' New $10.5bn Roads Of National Significance

National is committing to the next generation of Roads of National Significance, National Party Transport Spokesperson Simon Bridges says. More>>


Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>


Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>


Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>





Featured InfoPages

Opening the Election