Monday 16 June 1997

COUNCIL TO LOBBY MINISTER ON SI POWER DIFFERENTIAL

Christchurch City Council’s key Strategy and Resource Committee discussed the issue of the removal of the South Island power price differential as a matter of urgency.

There are plans to meet with South Island Local Authorities and other groups early next week to develop a strategy for persuading Max Bradford, the Minister of Energy to retaining the differential.

Councillors from all sides of the political spectrum were in strong agreement over the issue.

David Close, Chairperson of Strategy and Resources said "It is not a case of a subsidy to the South Island for power, the differential is the reverse: it is a charge to the North Island based on what it costs to send the power there."

It was the Councillors view that since Transpower, and ECNZ are owned 100% by Government the matter must be addressed with the Minister. Some Councillors also favoured looking at environmental issues and cheap gas in the North Island, as well as looking at the role Southpower plays in the energy market.

Councillor Margaret Murray, among others, argued for taking the case directly with Government; " the Government must continue to honour its obligation to the South Island, made in the 1980s, ... , and not hide behind ECNZ."

Councillor Ron Wright argued for "joining forces with other Councils to oppose this move!"

Councillor Garry Moore lamented the latest decision as proof that the Government had not got the energy sector sorted, "We should be fighting with Government, not Transpower. Government have changed many aspects of the power sector and still not got it right," he said.

There was discussion about raising the issue at a Local Government forum in Wellington as soon as possible.

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