Power concession

Press, 14 June 1986, Page 18

Power concession

Sir,—ln the 1984 Budget it was announced that the South Island Electricity Scheme was to be phased out. This was to be done on the following basis: (a) Reduction to 10 per cent from April 1, 1985; (b) reduction to 5 per cent from April 1, 1986; (c) termination on March 31, 1987. Note the termination date, 1987. On February 24, 1986, we were notified that the Minister of Regional Development had made the following announcement: “The S.I. Electricity Concession Scheme is to be phased out on 31-3-86.” Now note the termination date, one year earlier than originally promised. Is this another case to be added to the seemingly endless list of the present Government’s broken promises?—Yours, etc., RICK BENSEMANN. Motueka, May 20, 1986.

[Mr Tizard, Minister of Energy, replies: "The majority of your readers will be only too well aware that in the setting of the bulk supply tariff in April this year the Government included a 22 per cent differential for South Island electricity consumers. This effectively incorporates the benefits of the old concession scheme and applies it to all South Island electricity consumers. I believe the Minister of Regional Development, Mr Burke, the Gov-

emment’s Intention to bring forward the cessation date and the reasons for so doing in his statement to “The Press” on February 14 this year. The Government’s actions have resulted in significant savings to all South Island consumers, full advantage being made available to all, a year earlier than was originally planned. The alternative, to run the South Island electricity concession for another year, would have resulted in a reduction in the South Island electricity price differential and a corresponding loss to the majority of South Island electricity consumers."]