Dr LIM - 1998-12-01
Today’s NT News contains a story that the Power and Water Authority needs to undergo major internal restructuring in order for electricity tariffs to be reduced, and that the government is committed to reducing electricity tariffs in 1999. Can the Treasurer confirm or deny this report?
ANSWER
Madam Speaker, in doing so we will try to get the opposition out of the gutter and focused on matters of importance to Territorians. I think this article in the NT News of today would be of interest to Territorians. They do seem to have got pretty near the mark in relation to some of the matters that government has been considering.
The Power and Water Authority will certainly have to undergo major efficiencies and will have to achieve reductions in operational costs if it is to be competitive with the private sector. Members would be aware that there are expressions of interest around the community from private operators who want either to purchase the Power and Water Authority in total, as some have indicated, or to commence supplying electricity to consumers. In the face of that competition, the government has no alternative but to achieve efficiencies with the Power and Water Authority and pass those efficiencies on to the consumers, who will be the major beneficiaries of this exercise. If those efficiencies cannot be achieved, I believe it is inevitable that privatisation of the Power and Water Authority would occur.
Members interjecting.
Madam SPEAKER: Order!
Mr REED: I think there are people listening to this broadcast who would be interested in this. It is a very important issue and one that they would want to hear about, rather than the inane interjections from members opposite who do not seem to be interested in these very important matters.
I think the message is clear. That has been demonstrated by the comments from private operators and those seeking to become owners of the Power and Water Authority. I am pleased to say that the unions have been quite responsible in their approach. They have strongly indicated a desire to work with the authority to achieve efficiencies, and that willingness will be taken up by the authority. As efficiencies are gained, it is the government’s intention to pass the benefits on to the consumers. That will commence next year. The second quarter of 1999 will see a reduction in electricity charges to commercial consumers across the Northern Territory, and that will include the Commonwealth consumers, defence establishments, large consumers across the Northern Territory and smaller commercial consumers and ...
Ms Martin: And the domestic rate will be?
Mr REED: Motormouth from Fannie Bay is intent that people should not hear this information. People are interested. I ask her to keep quiet and allow listeners to the broadcast to hear this very important information.
Madam SPEAKER: Member for Fannie Bay, I have spoken to you once already.
Ms Martin interjecting.
Mr REED: There she goes again - motormouth. She can’t help herself. As I was about to say before the interjections from the member from Fannie Bay, local government will be included in the areas to experience electricity tariff reductions from the second quarter of 1999. However, Northern Territory government agencies will not, because if the benefits were passed on to Northern Territory government agencies that would decrease the availability of benefits to be handed to other commercial consumers.
The government is mindful of maximising the flow-on of benefits from the efficiency programs. In fact, over the next 3 years the government has targeted a reduction in commercial tariffs of 20% for most commercial consumers. Many of them will achieve real benefits as the Power and Water Authority get onto a tariff system that reflects the cost of provision of electricity to consumers. That will provide enormous benefits to commercial consumers across the Northern Territory. It will enable business people who access goods and services from commercial operators perhaps to achieve lower costs for the goods and services that they purchase and it will certainly enable the business sector in the Northern Territory to be much more competitive with their interstate counterparts. That will have obvious flow-on benefits to the private sector in the Northern Territory and will be a further increment in the assistance that this government provides to generating economic development and assisting the private sector.
It is a significant move. The Power and Water Authority efficiencies will be passed on to consumers. It is a pity that members opposite don’t appreciate the benefits that will accrue from this. In overall terms, the authority will be aiming to reduce its operational costs by almost $30m a year. That is the target that will be required to be met to achieve the benefits that the business community, the private sector, will be able to enjoy once they are implemented. I am sure members will welcome it.
Ms Martin: What about domestic? What about Territorians?
Madam SPEAKER: Member for Fannie Bay, you have been spoke to twice. Stop your interjections.
ANSWER
Madam Speaker, in doing so we will try to get the opposition out of the gutter and focused on matters of importance to Territorians. I think this article in the NT News of today would be of interest to Territorians. They do seem to have got pretty near the mark in relation to some of the matters that government has been considering.
The Power and Water Authority will certainly have to undergo major efficiencies and will have to achieve reductions in operational costs if it is to be competitive with the private sector. Members would be aware that there are expressions of interest around the community from private operators who want either to purchase the Power and Water Authority in total, as some have indicated, or to commence supplying electricity to consumers. In the face of that competition, the government has no alternative but to achieve efficiencies with the Power and Water Authority and pass those efficiencies on to the consumers, who will be the major beneficiaries of this exercise. If those efficiencies cannot be achieved, I believe it is inevitable that privatisation of the Power and Water Authority would occur.
Members interjecting.
Madam SPEAKER: Order!
Mr REED: I think there are people listening to this broadcast who would be interested in this. It is a very important issue and one that they would want to hear about, rather than the inane interjections from members opposite who do not seem to be interested in these very important matters.
I think the message is clear. That has been demonstrated by the comments from private operators and those seeking to become owners of the Power and Water Authority. I am pleased to say that the unions have been quite responsible in their approach. They have strongly indicated a desire to work with the authority to achieve efficiencies, and that willingness will be taken up by the authority. As efficiencies are gained, it is the government’s intention to pass the benefits on to the consumers. That will commence next year. The second quarter of 1999 will see a reduction in electricity charges to commercial consumers across the Northern Territory, and that will include the Commonwealth consumers, defence establishments, large consumers across the Northern Territory and smaller commercial consumers and ...
Ms Martin: And the domestic rate will be?
Mr REED: Motormouth from Fannie Bay is intent that people should not hear this information. People are interested. I ask her to keep quiet and allow listeners to the broadcast to hear this very important information.
Madam SPEAKER: Member for Fannie Bay, I have spoken to you once already.
Ms Martin interjecting.
Mr REED: There she goes again - motormouth. She can’t help herself. As I was about to say before the interjections from the member from Fannie Bay, local government will be included in the areas to experience electricity tariff reductions from the second quarter of 1999. However, Northern Territory government agencies will not, because if the benefits were passed on to Northern Territory government agencies that would decrease the availability of benefits to be handed to other commercial consumers.
The government is mindful of maximising the flow-on of benefits from the efficiency programs. In fact, over the next 3 years the government has targeted a reduction in commercial tariffs of 20% for most commercial consumers. Many of them will achieve real benefits as the Power and Water Authority get onto a tariff system that reflects the cost of provision of electricity to consumers. That will provide enormous benefits to commercial consumers across the Northern Territory. It will enable business people who access goods and services from commercial operators perhaps to achieve lower costs for the goods and services that they purchase and it will certainly enable the business sector in the Northern Territory to be much more competitive with their interstate counterparts. That will have obvious flow-on benefits to the private sector in the Northern Territory and will be a further increment in the assistance that this government provides to generating economic development and assisting the private sector.
It is a significant move. The Power and Water Authority efficiencies will be passed on to consumers. It is a pity that members opposite don’t appreciate the benefits that will accrue from this. In overall terms, the authority will be aiming to reduce its operational costs by almost $30m a year. That is the target that will be required to be met to achieve the benefits that the business community, the private sector, will be able to enjoy once they are implemented. I am sure members will welcome it.
Ms Martin: What about domestic? What about Territorians?
Madam SPEAKER: Member for Fannie Bay, you have been spoke to twice. Stop your interjections.
Last updated: 09 Aug 2016