Roger Sowry
National Energy Spokesperson
28th January 2004
Hodgson lost over power price increases
Energy Minister Pete Hodgson's ignorance of power price increases has been exposed, says National's Energy spokesperson
Roger Sowry.
"Last week Pete Hodgson told the public his advice was that price increases of up to 15% were not "overshooting". Now it
emerges that he didn't receive this advice until 23rd January, several days after his comments.
"It seems that Mr Hodgson had no real idea about the price hikes of up to 15%, and tried to cover his tracks by getting
advice after the fact.
"This is just more evidence that the Minister of Energy has a weak grasp on his portfolio and is not providing the
necessary leadership or forward planning.
"The advice also confirms that the Government is to blame for the high cost of new generation. The report from the
Ministry of Economic Development says that "delays in construction of significant new generation" could drive up costs,
and that "changes to implement Government policies to improve environmental outcomes and security of electricity supply
will also affect costs."
"The cost of new generation should not be so high. It is clear that the RMA, the Kyoto agreement and the Conservation
Act are still hindering new projects and creating red tape. Consumers are having to bear the cost of this," said Mr
Sowry.
Ends