Thursday, 31 May 2007

Lower income households shoulder energy burden - Dunne

United Future leader and energy spokesperson Peter Dunne is concerned that if the upward trend in electricity and fuel prices is not halted, many New Zealand families may face an uncertain future.

“While I do not want to comment on the recent sad case involving Mercury Energy, I do see this as very much the tip of the iceberg,” said Mr Dunne

“It is not uncommon for people on low incomes to have to turn the lights off and go without heating so that they can pay their monthly power bills. I have heard of many cases where families have resorted to candles for lighting and small gas burners for cooking.

“Since 1988 the proportion of total household expenditure on domestic fuel and electricity has increased by 20 percent.

“Unfortunately when one breaks down the statistics, it is those who fall into the lower income brackets that suffer most. Their household energy expenditure has risen significantly more than the 20 percent average.

“Many low income families are now paying over five percent of their total household expenses on domestic power.

“This trend must be reversed or the gap between the ‘haves’ and ‘have-nots’ will continue to grow in this country.

“I challenge this Government to look to its egalitarian roots and come up with some policy options to specifically reduce the cost of energy for lower income families.

"If they don’t I fear the prophecy of a growing underclass in New Zealand may very well come true,” concluded Mr Dunne.

ENDS

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