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

 


Contact confirms asset sales mean higher power prices

2 April 2013

Contact confirms asset sales mean higher power prices

Contact Energy’s call for higher power prices to satisfy the profit demands of private investors is confirmation that asset sales would mean Kiwi households would pay more for electricity, Green Party Co-leader Dr Russel Norman said today.

Contact Energy CEO Dennis Barnes has today called for higher power prices to generate higher returns for private investors. Contact’s ‘competitors’ conspicuously failed to disagree with Contact’s push for higher electricity prices.

“If National sells our electricity assets, it will mean higher power prices for Kiwi families and businesses,” said Dr Norman.

“It is no surprise that Contact is using the asset sales to push for another power price increase.

“Mr Barnes is right; private investors need larger profits than the government to make a return on investment because their cost of capital is higher. And higher profits means higher power prices.

“The excuse that capital is needed to fund new power stations doesn’t stack up. A raft of new generation projects have been cancelled or suspended in the last few years due to static demand. The risk that Tiwai Point will close means more likelihood of a surplus of generation capacity than a shortage.

“New Zealanders don’t want our assets sold. We don’t want to pay more for our electricity so that foreign investors can make fat profits at our expense.

“National should put the asset sales programme on hold until the referendum is held, and it should listen to the voice of New Zealand when the public votes ‘no’ to asset sales,” said Dr Norman.

ends

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Last Sitting Day Of Parliament: Slave Ships Bill To Pass

The House resumed at 9am and MPs agreed to add the third reading of the Fisheries (Foreign Charter Vessels and Other Matters) Amendment Bill to this morning’s business.

The bill requires all foreign owned fishing vessels to fly under a New Zealand flag from May 2016 and obey all New Zealand laws. This includes labour laws...

Last night Opposition MPs accused the Maori Party of blocking the passage of this bill into law in this Parliament, no members of the Maori Party were in the House to answer the accusations though they denied this in a press release. More>>

 

Parliament Today:

Novopayout: Government-Owned Company To Take Over School Payroll

After lengthy negotiations, the Ministry of Education and the existing school payroll provider, Talent2, have settled both on the amounts payable by Talent2 towards the costs of remediating the Novopay service and a new operating model for the school payroll system. More>>

ALSO:

Employment: Labour Will Raise Minimum Wage, Restore Work Rights

A Labour government will raise the minimum wage $2 an hour to $16.25 and restore work rights to ensure the benefits of economic growth are shared fairly by all New Zealanders, Labour Leader David Cunliffe says. More>>

ALSO:

Police: Crewe File Review Released

No new evidence has come to light implicating any specific person as being responsible for the murders of Jeannette and Harvey Crewe... The review identifies there is a distinct possibility that Exhibit 350 (the brass .22 cartridge case) may be fabricated evidence, and that if this is the case, that a member of Police would have been responsible. More>>

ALSO:

Werewolf Issue #49: Gordon Campbell Interviews Laila Harre

For 25 years, Labour and National have been in virtual agreement about the basics of economic policy, and differed mainly on how to go about managing its social consequences. More>>

ALSO:

Greens: Plan To Protect Our Maui’s Dolphins

1. Protect Maui’s from being killed in the sanctuary set up to protect them... 2. Extend fishing protections to the entire Maui’s range... 3. Help protect the livelihoods of affected fishers by supporting them to adopt dolphin-safe fishing methods. More>>

ALSO:

Gordon Campbell: On National’s Electorate Deals

For all the talk yesterday from Prime Minister John Key about National being transparent about its electorate deals in Epsom and Ohariu, that transparency is entirely front-loaded. More>>

ALSO:

Greens: Oil Drilling Face-Off With Labour

The key policy points in the Green Party’s plan to protect our beaches from oil spills are to:
1. Prohibit deep sea oil drilling; 2. Implement compulsory shipping lanes for coastal shipping; 3. Build Maritime New Zealand’s oil spill response capability; and 4. Introduce a stronger legal framework so that when accidents do happen, the New Zealand taxpayer does not have to pay for the clean-up. More>>

ALSO:


Nick Smith v Fish & Game:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
Parliament
Search Scoop  
 
 
Powered by Vodafone
NZ independent news