Asset sales will spark power price rises

new-zealand-labour-party

Tue Apr 05 2011 12:00:00 GMT+1200 (New Zealand Standard Time)

Asset sales will spark power price rises

Tuesday, 5 April 2011, 8:51 am
Press Release: New Zealand Labour Party

Power prices will skyrocket if National flogs off our valuable state-owned electricity companies to private buyers and that's something Kiwi families can't afford as they struggle to cope with other increases in living costs, says Labour Leader Phil Goff.

Speaking at a public meeting in Auckland, Phil Goff said energy experts have reported that since 1998, prices charged by privately-owned power companies have increased by around a third more than those charged by SOEs.

"New Zealanders are already paying too much for their electricity. The last thing struggling middle and low income Kiwis need is for their power prices to go up at an even faster rate. That is exactly what will happen when new private and foreign owners of our electricity companies demand better returns on their investment.

"Kiwi voters have a clear choice this election. Labour will put a stop to asset sales and it will fight for a fair go for consumers who are already paying through the nose for their power.

"National has learned nothing from its failures when last in Government. It's now stooped to using the tragedy of the Canterbury earthquake as an excuse to repeat its past mistakes.

"Selling off assets that all Kiwis already own and that return dividends which are essential to pay for services like health and education doesn't make sense.

"We cannot afford to be put in the position down the track of trying to come up with the money to buy back these assets. Labour had to do that in the past with Kiwirail and Air New Zealand after they were run into the ground by private interests after National had sold them off.

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"Privatisation also closes off the option of reforms which might rationalise electricity generation and supply and it lessens political accountability for prices and use of sustainable energy generation.

"We need to create an electricity market which if it can't be competitive, is at least efficient, with prices regulated and where Government takes responsibility to stop excessive profit taking and price gouging."

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