News release

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14 August 2008
NEWS: National - Going for growth

National Party Leader John Key says a Government he leads will focus on security of electricity supply, while upholding New Zealand's environmental responsibilities.

"Quality infrastructure is vital to lifting national productivity, improving public services, and generating long-term economic growth.  A critical component of that growth engine is our electricity sector and, in particular, our electricity supply."

Mr Key was speaking at a meeting of the Council for Infrastructure Development, highlighting aspects of National's Energy Policy, to be released by National's Energy spokesman Gerry Brownlee today.

Mr Key says there are four key things National will do to ensure New Zealanders can have confidence in their electricity infrastructure.  They are:

• Acknowledge the extent of future demand.  National will be realistic about the likely need for more electricity supply to keep New Zealand growing in the years ahead.
• Reform the Resource Management Act (RMA) and introduce Priority Consenting to allow more generation and transmission to be built. The RMA is a key barrier to new generation being built. National will introduce to Parliament a bill to reform the RMA within the first 100 days of its first term.  The legislation will include removing the ministerial veto over consents, reducing the number of consent categories, and putting an end to frivolous and vexatious objections.
• Send a clear signal that gas will be a part of the energy mix needed for security of supply. New Zealand has fantastic renewable resources like hydro and wind, and it's important that we develop those.  But the lesson from this winter is that thermal electricity generation is essential in keeping the lights on. National will therefore overturn the Government's ban on new base load thermal power stations.  
• Streamline the investment and decision-making processes for investing  in new transmission. National, in Government, will undertake a careful review of the roles played by the Electricity Commission, Commerce Commission, and Transpower.   We will do this with a particular focus on reducing duplication and costly bureaucracy, and ensuring the best outcomes for consumers - in terms of security of supply and affordability. 

Mr Key says that beyond security of electricity supply, National knows that New Zealand must balance its energy needs with its environmental responsibilities. 

"National is determined to provide clear policy settings that favour renewable electricity generation. 

"We expect that our proposed emissions trading scheme (ETS) will result in no new coal stations being built - unless proven technologies for carbon capture and storage change the emissions profile of coal."


Policy/Backgrounder: click here


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#1 - Paul Bebbington 2008-08-14 20:48 - (Reply)

Hi John Well done - the energy policy brings the real issues into focus, the need for future economic growth and security of supply via having the investment in electricity generation and transmission capacity and reforming the RMA which counteracts at times the main objectives. Although Gas is the cleanest thermal resource, compared with hydro its carbon footprint is significant but for base load generation this is reality due to the demand, however it is a finite resource. THe ETS I think needs also rethinking, a tonne of carbon to buy is far too cheap and no incentive for a producer to reduce its emissions via technology. These examples above are areas NZers will have to be convinced with wrt the climate change policy here in NZ and obligations to reduce our overall carbon footprint as europe and other areas are committed to doing. Coal would have to be scrubbed of carbon if new station were to be considered bringing the cost of a kWh above wind generation. Again the sell to NZers would be as popular as mentioning Nuclear power plants, which in the long term is the only practical and 'green' and safe solution to provide the amount of local capacity to growth cities like Auckland. The waste is the only draw back as is the initial investment and time length of construction. You may like to consider offshore wind farms (like in europe) aways a breeze, where there are reasonable population bases - people in europe perfer wind farms to chimneys belching posion emissions due to the demanded standard of living so with NZ's image of clean green the sell should be half way there? Its all about sustainabilty of resources and the smart use of them while still going forward! Anyway, keep up the good work and lets see National get home this election! Regards Paul Bebbington


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