Mrs HICKEY - 1998-08-19
In Hon Mike Reed’s 1998 budget of betrayal, the Country Liberal Party’s hollow election promise to freeze electricity prices was broken. On 1 July, power prices were hiked up by more than 7%. Under a GST, power prices will increase by a further 10%. Will the minister expl\ain to Territorians how this will benefit them?
ANSWER
Madam Speaker, a GST will apply to electricity that is produced in the Northern Territory. However, I ask honourable members to study the documents closely and look at the commodities and equipment that are used for power generation and distribution by the Power and Water Authority. Large reductions will occur in a number of areas - the supply of equipment, electrical components and diesel fuel being the main ones. There will undoubtedly be a slight increase in the price of electricity. Until all those additions and subtractions are made by the industry, I am unable to say how much power costs will rise, but any increase will be insignificant. At present, it is guesstimated at 2% or 3%. In the long term, however, huge savings will be made on the replacement of capital equipment such as generators.
ANSWER
Madam Speaker, a GST will apply to electricity that is produced in the Northern Territory. However, I ask honourable members to study the documents closely and look at the commodities and equipment that are used for power generation and distribution by the Power and Water Authority. Large reductions will occur in a number of areas - the supply of equipment, electrical components and diesel fuel being the main ones. There will undoubtedly be a slight increase in the price of electricity. Until all those additions and subtractions are made by the industry, I am unable to say how much power costs will rise, but any increase will be insignificant. At present, it is guesstimated at 2% or 3%. In the long term, however, huge savings will be made on the replacement of capital equipment such as generators.
Last updated: 09 Aug 2016