Opposition questions the Treasurer regarding potential electricity price increases in the upcoming budget, referencing a previous promise of downward pressure on prices due to energy reforms. The Treasurer deflects, stating business fees will be addressed on budget day due to commercial sensitivity.

AnsweredQoN 184Legislative Assembly
Asked
8 May 2007
Portfolio
Treasurer

QuestionView source ↗

ELECTRICITY PRICES
I remind the Treasurer of comments made by the former Minister for Energy, the now Premier, in May 2005 that the government’s energy reforms would result in “downward pressure on electricity prices”. In light of this promise by the Premier, I ask - (1) Can the Treasurer guarantee that no Western Australian energy users, be they residential users or businesses, will be hit with an increase in electricity prices in the budget this Thursday? (2) If the Treasurer cannot, will he concede that the Premier’s comments were, at the very least, misleading, and, at worst, deliberately deceptive? (3) If there is to be an increase in prices charged to businesses, why did the Treasurer not announce them yesterday at his press conference? Mr E.S. RIPPER

AnswerView source ↗

(1)-(3) Yesterday at my press conference I dealt with household fees and charges. I will deal with business fees and charges on Thursday when the budget comes down. There is good reason for that. Business matters are normally commercially sensitive, and, therefore, if they are to be dealt with, they should be dealt with on budget day. Mr J.H.D. Day interjected. Mr E.S. RIPPER : Did the member like it? The Premier’s comments on energy reform echo my own comments on energy reform. They were true then and they are true now. Competition in the electricity industry will put downward pressure, and is in fact already putting downward pressure, on prices. For example, there has been, in real terms, a 16 per cent fall in electricity prices since we came to power. Nevertheless, that downward pressure on electricity prices has to deal with upward pressures from factors over which the government has no control. For example, the government cannot control the price of steel, the price of aluminium or the price of copper. The government cannot have more than a limited impact on wages in the electricity system. Therefore, all those matters put upward pressure on prices, but the reform and competition put countervailing downward pressure on prices. It was true when the Premier said it, it was true when I said it, and it is true now.
(1) Can the Treasurer guarantee that no Western Australian energy users, be they residential users or businesses, will be hit with an increase in electricity prices in the budget this Thursday? (2) If the Treasurer cannot, will he concede that the Premier’s comments were, at the very least, misleading, and, at worst, deliberately deceptive? (3) If there is to be an increase in prices charged to businesses, why did the Treasurer not announce them yesterday at his press conference? Mr E.S. RIPPER replied: (1)-(3) Yesterday at my press conference I dealt with household fees and charges. I will deal with business fees and charges on Thursday when the budget comes down. There is good reason for that. Business matters are normally commercially sensitive, and, therefore, if they are to be dealt with, they should be dealt with on budget day. Mr J.H.D. Day interjected. Mr E.S. RIPPER : Did the member like it? The Premier’s comments on energy reform echo my own comments on energy reform. They were true then and they are true now. Competition in the electricity industry will put downward pressure, and is in fact already putting downward pressure, on prices. For example, there has been, in real terms, a 16 per cent fall in electricity prices since we came to power. Nevertheless, that downward pressure on electricity prices has to deal with upward pressures from factors over which the government has no control. For example, the government cannot control the price of steel, the price of aluminium or the price of copper. The government cannot have more than a limited impact on wages in the electricity system. Therefore, all those matters put upward pressure on prices, but the reform and competition put countervailing downward pressure on prices. It was true when the Premier said it, it was true when I said it, and it is true now.
(2) If the Treasurer cannot, will he concede that the Premier’s comments were, at the very least, misleading, and, at worst, deliberately deceptive? (3) If there is to be an increase in prices charged to businesses, why did the Treasurer not announce them yesterday at his press conference? Mr E.S. RIPPER replied: (1)-(3) Yesterday at my press conference I dealt with household fees and charges. I will deal with business fees and charges on Thursday when the budget comes down. There is good reason for that. Business matters are normally commercially sensitive, and, therefore, if they are to be dealt with, they should be dealt with on budget day. Mr J.H.D. Day interjected. Mr E.S. RIPPER : Did the member like it? The Premier’s comments on energy reform echo my own comments on energy reform. They were true then and they are true now. Competition in the electricity industry will put downward pressure, and is in fact already putting downward pressure, on prices. For example, there has been, in real terms, a 16 per cent fall in electricity prices since we came to power. Nevertheless, that downward pressure on electricity prices has to deal with upward pressures from factors over which the government has no control. For example, the government cannot control the price of steel, the price of aluminium or the price of copper. The government cannot have more than a limited impact on wages in the electricity system. Therefore, all those matters put upward pressure on prices, but the reform and competition put countervailing downward pressure on prices. It was true when the Premier said it, it was true when I said it, and it is true now.
(3) If there is to be an increase in prices charged to businesses, why did the Treasurer not announce them yesterday at his press conference? Mr E.S. RIPPER replied: (1)-(3) Yesterday at my press conference I dealt with household fees and charges. I will deal with business fees and charges on Thursday when the budget comes down. There is good reason for that. Business matters are normally commercially sensitive, and, therefore, if they are to be dealt with, they should be dealt with on budget day. Mr J.H.D. Day interjected. Mr E.S. RIPPER : Did the member like it? The Premier’s comments on energy reform echo my own comments on energy reform. They were true then and they are true now. Competition in the electricity industry will put downward pressure, and is in fact already putting downward pressure, on prices. For example, there has been, in real terms, a 16 per cent fall in electricity prices since we came to power. Nevertheless, that downward pressure on electricity prices has to deal with upward pressures from factors over which the government has no control. For example, the government cannot control the price of steel, the price of aluminium or the price of copper. The government cannot have more than a limited impact on wages in the electricity system. Therefore, all those matters put upward pressure on prices, but the reform and competition put countervailing downward pressure on prices. It was true when the Premier said it, it was true when I said it, and it is true now.
Mr E.S. RIPPER replied: (1)-(3) Yesterday at my press conference I dealt with household fees and charges. I will deal with business fees and charges on Thursday when the budget comes down. There is good reason for that. Business matters are normally commercially sensitive, and, therefore, if they are to be dealt with, they should be dealt with on budget day. Mr J.H.D. Day interjected. Mr E.S. RIPPER : Did the member like it? The Premier’s comments on energy reform echo my own comments on energy reform. They were true then and they are true now. Competition in the electricity industry will put downward pressure, and is in fact already putting downward pressure, on prices. For example, there has been, in real terms, a 16 per cent fall in electricity prices since we came to power. Nevertheless, that downward pressure on electricity prices has to deal with upward pressures from factors over which the government has no control. For example, the government cannot control the price of steel, the price of aluminium or the price of copper. The government cannot have more than a limited impact on wages in the electricity system. Therefore, all those matters put upward pressure on prices, but the reform and competition put countervailing downward pressure on prices. It was true when the Premier said it, it was true when I said it, and it is true now.
(1)-(3) Yesterday at my press conference I dealt with household fees and charges. I will deal with business fees and charges on Thursday when the budget comes down. There is good reason for that. Business matters are normally commercially sensitive, and, therefore, if they are to be dealt with, they should be dealt with on budget day. Mr J.H.D. Day interjected. Mr E.S. RIPPER : Did the member like it? The Premier’s comments on energy reform echo my own comments on energy reform. They were true then and they are true now. Competition in the electricity industry will put downward pressure, and is in fact already putting downward pressure, on prices. For example, there has been, in real terms, a 16 per cent fall in electricity prices since we came to power. Nevertheless, that downward pressure on electricity prices has to deal with upward pressures from factors over which the government has no control. For example, the government cannot control the price of steel, the price of aluminium or the price of copper. The government cannot have more than a limited impact on wages in the electricity system. Therefore, all those matters put upward pressure on prices, but the reform and competition put countervailing downward pressure on prices. It was true when the Premier said it, it was true when I said it, and it is true now.
Mr J.H.D. Day interjected. Mr E.S. RIPPER : Did the member like it? The Premier’s comments on energy reform echo my own comments on energy reform. They were true then and they are true now. Competition in the electricity industry will put downward pressure, and is in fact already putting downward pressure, on prices. For example, there has been, in real terms, a 16 per cent fall in electricity prices since we came to power. Nevertheless, that downward pressure on electricity prices has to deal with upward pressures from factors over which the government has no control. For example, the government cannot control the price of steel, the price of aluminium or the price of copper. The government cannot have more than a limited impact on wages in the electricity system. Therefore, all those matters put upward pressure on prices, but the reform and competition put countervailing downward pressure on prices. It was true when the Premier said it, it was true when I said it, and it is true now.
Mr E.S. RIPPER : Did the member like it? The Premier’s comments on energy reform echo my own comments on energy reform. They were true then and they are true now. Competition in the electricity industry will put downward pressure, and is in fact already putting downward pressure, on prices. For example, there has been, in real terms, a 16 per cent fall in electricity prices since we came to power. Nevertheless, that downward pressure on electricity prices has to deal with upward pressures from factors over which the government has no control. For example, the government cannot control the price of steel, the price of aluminium or the price of copper. The government cannot have more than a limited impact on wages in the electricity system. Therefore, all those matters put upward pressure on prices, but the reform and competition put countervailing downward pressure on prices. It was true when the Premier said it, it was true when I said it, and it is true now.

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