❓ Mrs Roberts questions the Treasurer about electricity tariff increases and the potential cost to families. Mr Porter defends the government's approach, highlighting rising costs and criticising the opposition's proposed freeze.
AnsweredQoN 151Legislative Assembly
QuestionView source ↗
ELECTRICITY tariff increases
The Treasurer has said that to freeze electricity prices over four years would cost $3.25 billion. (1) Does that cost equate to about $3 000 per family; and, is that how much extra families will have to pay in power costs? (2) What protection can the Treasurer offer families and pensioners from massively increased power bills? Mr C.C. PORTER
The Treasurer has said that to freeze electricity prices over four years would cost $3.25 billion. (1) Does that cost equate to about $3 000 per family; and, is that how much extra families will have to pay in power costs? (2) What protection can the Treasurer offer families and pensioners from massively increased power bills? Mr C.C. PORTER
AnswerView source ↗
(1)–(2) That is a very fair question. What sits behind the $3.52 billion is that the budget papers show a 22 per cent forecast increase in electricity prices next year. That forecast increase will not occur. That forecast increase would have taken us to cost-reflectivity, in addition to the difficult decisions that we have had to make over the previous 18 months that have resulted in a 46 per cent increase in electricity costs. However, new information has come through to us from the utilities during the course of putting this budget together that suggests that the costs of generating, transmitting and producing electricity and delivering it to a household are increasing very rapidly. The increase in costs has been going on since the former government commissioned the review of the Office of Energy. In 2011 we find ourselves in a period when electricity is rapidly becoming increasingly costly to produce for a variety of reasons that relate to environmental policies and the costs of generation, fuel, labour and construction. The government has said that there will not be an increase of anything like the magnitude of 22 per cent next year. However, let me note that in the context of those increasing costs, the estimated figure of 22 per cent to bring us to cost-reflectivity in one year—that is, next year—is now wrong. The price increase required to bring us to cost-reflectivity is now higher than that. Mr E.S. Ripper : What is that figure? Mr C.C. PORTER : The Leader of the Opposition will see that figure as part of the budget. However, our price increases will be nowhere near 22 per cent or a larger figure than that. Mrs M.H. Roberts : You gave us the $3.25 billion figure last week. That is not a figure from last year; that was you last week. You said $3.25 billion. Are you saying the figure that you gave us last week is not correct? Mr C.C. PORTER : I am getting to that point of the member for Midland’s question. The cost of electricity is the cost of electricity. There are two ways in which utilities can recover that cost; one is through prices and the other is through the direct subsidies that the government pays to the electricity utilities. I say to the member that the former Labor government’s policy of freezing the price of electricity so that over the next four out years there was a zero per cent increase, zero per cent increase, zero per cent increase and zero per cent increase would, based on the cost structures that we have been informed now exist, require a direct operating subsidy to the electricity utilities of $3.25 billion. Mr E.S. Ripper : Why can you release that figure but not the percentage figure? Mr C.C. PORTER : Because that is part of the budget process. We are now scrutinising that claim about those costs. We are scrutinising that analysis of $3.25 billion. To put that figure in perspective, Labor’s entire capital spend budget in 2007–08 was $2.79 billion. If we were to freeze electricity prices, a figure in excess of the entire capital spend of the former government’s yearly spend would be directly pumped in electricity utilities. Surely that cannot be a great idea; it is a bad idea. We have to look at the appropriate mix of the rapidly increasing costs being borne through the consumers’ end price and by all Western Australians through the taxpayer system, which results in subsidies. The opposition’s solution is zero per cent increases in price and $3.25 billion coming from the taxpayer. Our solution is a modest increase in price. There will be a heavy subsidy to the electricity utilities over the next four years, but we think it is taking a wrecking ball through the Western Australian economy to make that subsidy $3.25 billion over four years. It is just silliness. It might be electorally attractive for six months — Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
(1) Does that cost equate to about $3 000 per family; and, is that how much extra families will have to pay in power costs? (2) What protection can the Treasurer offer families and pensioners from massively increased power bills? Mr C.C. PORTER replied: (1)–(2) That is a very fair question. What sits behind the $3.52 billion is that the budget papers show a 22 per cent forecast increase in electricity prices next year. That forecast increase will not occur. That forecast increase would have taken us to cost-reflectivity, in addition to the difficult decisions that we have had to make over the previous 18 months that have resulted in a 46 per cent increase in electricity costs. However, new information has come through to us from the utilities during the course of putting this budget together that suggests that the costs of generating, transmitting and producing electricity and delivering it to a household are increasing very rapidly. The increase in costs has been going on since the former government commissioned the review of the Office of Energy. In 2011 we find ourselves in a period when electricity is rapidly becoming increasingly costly to produce for a variety of reasons that relate to environmental policies and the costs of generation, fuel, labour and construction. The government has said that there will not be an increase of anything like the magnitude of 22 per cent next year. However, let me note that in the context of those increasing costs, the estimated figure of 22 per cent to bring us to cost-reflectivity in one year—that is, next year—is now wrong. The price increase required to bring us to cost-reflectivity is now higher than that. Mr E.S. Ripper : What is that figure? Mr C.C. PORTER : The Leader of the Opposition will see that figure as part of the budget. However, our price increases will be nowhere near 22 per cent or a larger figure than that. Mrs M.H. Roberts : You gave us the $3.25 billion figure last week. That is not a figure from last year; that was you last week. You said $3.25 billion. Are you saying the figure that you gave us last week is not correct? Mr C.C. PORTER : I am getting to that point of the member for Midland’s question. The cost of electricity is the cost of electricity. There are two ways in which utilities can recover that cost; one is through prices and the other is through the direct subsidies that the government pays to the electricity utilities. I say to the member that the former Labor government’s policy of freezing the price of electricity so that over the next four out years there was a zero per cent increase, zero per cent increase, zero per cent increase and zero per cent increase would, based on the cost structures that we have been informed now exist, require a direct operating subsidy to the electricity utilities of $3.25 billion. Mr E.S. Ripper : Why can you release that figure but not the percentage figure? Mr C.C. PORTER : Because that is part of the budget process. We are now scrutinising that claim about those costs. We are scrutinising that analysis of $3.25 billion. To put that figure in perspective, Labor’s entire capital spend budget in 2007–08 was $2.79 billion. If we were to freeze electricity prices, a figure in excess of the entire capital spend of the former government’s yearly spend would be directly pumped in electricity utilities. Surely that cannot be a great idea; it is a bad idea. We have to look at the appropriate mix of the rapidly increasing costs being borne through the consumers’ end price and by all Western Australians through the taxpayer system, which results in subsidies. The opposition’s solution is zero per cent increases in price and $3.25 billion coming from the taxpayer. Our solution is a modest increase in price. There will be a heavy subsidy to the electricity utilities over the next four years, but we think it is taking a wrecking ball through the Western Australian economy to make that subsidy $3.25 billion over four years. It is just silliness. It might be electorally attractive for six months — Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
(2) What protection can the Treasurer offer families and pensioners from massively increased power bills? Mr C.C. PORTER replied: (1)–(2) That is a very fair question. What sits behind the $3.52 billion is that the budget papers show a 22 per cent forecast increase in electricity prices next year. That forecast increase will not occur. That forecast increase would have taken us to cost-reflectivity, in addition to the difficult decisions that we have had to make over the previous 18 months that have resulted in a 46 per cent increase in electricity costs. However, new information has come through to us from the utilities during the course of putting this budget together that suggests that the costs of generating, transmitting and producing electricity and delivering it to a household are increasing very rapidly. The increase in costs has been going on since the former government commissioned the review of the Office of Energy. In 2011 we find ourselves in a period when electricity is rapidly becoming increasingly costly to produce for a variety of reasons that relate to environmental policies and the costs of generation, fuel, labour and construction. The government has said that there will not be an increase of anything like the magnitude of 22 per cent next year. However, let me note that in the context of those increasing costs, the estimated figure of 22 per cent to bring us to cost-reflectivity in one year—that is, next year—is now wrong. The price increase required to bring us to cost-reflectivity is now higher than that. Mr E.S. Ripper : What is that figure? Mr C.C. PORTER : The Leader of the Opposition will see that figure as part of the budget. However, our price increases will be nowhere near 22 per cent or a larger figure than that. Mrs M.H. Roberts : You gave us the $3.25 billion figure last week. That is not a figure from last year; that was you last week. You said $3.25 billion. Are you saying the figure that you gave us last week is not correct? Mr C.C. PORTER : I am getting to that point of the member for Midland’s question. The cost of electricity is the cost of electricity. There are two ways in which utilities can recover that cost; one is through prices and the other is through the direct subsidies that the government pays to the electricity utilities. I say to the member that the former Labor government’s policy of freezing the price of electricity so that over the next four out years there was a zero per cent increase, zero per cent increase, zero per cent increase and zero per cent increase would, based on the cost structures that we have been informed now exist, require a direct operating subsidy to the electricity utilities of $3.25 billion. Mr E.S. Ripper : Why can you release that figure but not the percentage figure? Mr C.C. PORTER : Because that is part of the budget process. We are now scrutinising that claim about those costs. We are scrutinising that analysis of $3.25 billion. To put that figure in perspective, Labor’s entire capital spend budget in 2007–08 was $2.79 billion. If we were to freeze electricity prices, a figure in excess of the entire capital spend of the former government’s yearly spend would be directly pumped in electricity utilities. Surely that cannot be a great idea; it is a bad idea. We have to look at the appropriate mix of the rapidly increasing costs being borne through the consumers’ end price and by all Western Australians through the taxpayer system, which results in subsidies. The opposition’s solution is zero per cent increases in price and $3.25 billion coming from the taxpayer. Our solution is a modest increase in price. There will be a heavy subsidy to the electricity utilities over the next four years, but we think it is taking a wrecking ball through the Western Australian economy to make that subsidy $3.25 billion over four years. It is just silliness. It might be electorally attractive for six months — Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mr C.C. PORTER replied: (1)–(2) That is a very fair question. What sits behind the $3.52 billion is that the budget papers show a 22 per cent forecast increase in electricity prices next year. That forecast increase will not occur. That forecast increase would have taken us to cost-reflectivity, in addition to the difficult decisions that we have had to make over the previous 18 months that have resulted in a 46 per cent increase in electricity costs. However, new information has come through to us from the utilities during the course of putting this budget together that suggests that the costs of generating, transmitting and producing electricity and delivering it to a household are increasing very rapidly. The increase in costs has been going on since the former government commissioned the review of the Office of Energy. In 2011 we find ourselves in a period when electricity is rapidly becoming increasingly costly to produce for a variety of reasons that relate to environmental policies and the costs of generation, fuel, labour and construction. The government has said that there will not be an increase of anything like the magnitude of 22 per cent next year. However, let me note that in the context of those increasing costs, the estimated figure of 22 per cent to bring us to cost-reflectivity in one year—that is, next year—is now wrong. The price increase required to bring us to cost-reflectivity is now higher than that. Mr E.S. Ripper : What is that figure? Mr C.C. PORTER : The Leader of the Opposition will see that figure as part of the budget. However, our price increases will be nowhere near 22 per cent or a larger figure than that. Mrs M.H. Roberts : You gave us the $3.25 billion figure last week. That is not a figure from last year; that was you last week. You said $3.25 billion. Are you saying the figure that you gave us last week is not correct? Mr C.C. PORTER : I am getting to that point of the member for Midland’s question. The cost of electricity is the cost of electricity. There are two ways in which utilities can recover that cost; one is through prices and the other is through the direct subsidies that the government pays to the electricity utilities. I say to the member that the former Labor government’s policy of freezing the price of electricity so that over the next four out years there was a zero per cent increase, zero per cent increase, zero per cent increase and zero per cent increase would, based on the cost structures that we have been informed now exist, require a direct operating subsidy to the electricity utilities of $3.25 billion. Mr E.S. Ripper : Why can you release that figure but not the percentage figure? Mr C.C. PORTER : Because that is part of the budget process. We are now scrutinising that claim about those costs. We are scrutinising that analysis of $3.25 billion. To put that figure in perspective, Labor’s entire capital spend budget in 2007–08 was $2.79 billion. If we were to freeze electricity prices, a figure in excess of the entire capital spend of the former government’s yearly spend would be directly pumped in electricity utilities. Surely that cannot be a great idea; it is a bad idea. We have to look at the appropriate mix of the rapidly increasing costs being borne through the consumers’ end price and by all Western Australians through the taxpayer system, which results in subsidies. The opposition’s solution is zero per cent increases in price and $3.25 billion coming from the taxpayer. Our solution is a modest increase in price. There will be a heavy subsidy to the electricity utilities over the next four years, but we think it is taking a wrecking ball through the Western Australian economy to make that subsidy $3.25 billion over four years. It is just silliness. It might be electorally attractive for six months — Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
(1)–(2) That is a very fair question. What sits behind the $3.52 billion is that the budget papers show a 22 per cent forecast increase in electricity prices next year. That forecast increase will not occur. That forecast increase would have taken us to cost-reflectivity, in addition to the difficult decisions that we have had to make over the previous 18 months that have resulted in a 46 per cent increase in electricity costs. However, new information has come through to us from the utilities during the course of putting this budget together that suggests that the costs of generating, transmitting and producing electricity and delivering it to a household are increasing very rapidly. The increase in costs has been going on since the former government commissioned the review of the Office of Energy. In 2011 we find ourselves in a period when electricity is rapidly becoming increasingly costly to produce for a variety of reasons that relate to environmental policies and the costs of generation, fuel, labour and construction. The government has said that there will not be an increase of anything like the magnitude of 22 per cent next year. However, let me note that in the context of those increasing costs, the estimated figure of 22 per cent to bring us to cost-reflectivity in one year—that is, next year—is now wrong. The price increase required to bring us to cost-reflectivity is now higher than that. Mr E.S. Ripper : What is that figure? Mr C.C. PORTER : The Leader of the Opposition will see that figure as part of the budget. However, our price increases will be nowhere near 22 per cent or a larger figure than that. Mrs M.H. Roberts : You gave us the $3.25 billion figure last week. That is not a figure from last year; that was you last week. You said $3.25 billion. Are you saying the figure that you gave us last week is not correct? Mr C.C. PORTER : I am getting to that point of the member for Midland’s question. The cost of electricity is the cost of electricity. There are two ways in which utilities can recover that cost; one is through prices and the other is through the direct subsidies that the government pays to the electricity utilities. I say to the member that the former Labor government’s policy of freezing the price of electricity so that over the next four out years there was a zero per cent increase, zero per cent increase, zero per cent increase and zero per cent increase would, based on the cost structures that we have been informed now exist, require a direct operating subsidy to the electricity utilities of $3.25 billion. Mr E.S. Ripper : Why can you release that figure but not the percentage figure? Mr C.C. PORTER : Because that is part of the budget process. We are now scrutinising that claim about those costs. We are scrutinising that analysis of $3.25 billion. To put that figure in perspective, Labor’s entire capital spend budget in 2007–08 was $2.79 billion. If we were to freeze electricity prices, a figure in excess of the entire capital spend of the former government’s yearly spend would be directly pumped in electricity utilities. Surely that cannot be a great idea; it is a bad idea. We have to look at the appropriate mix of the rapidly increasing costs being borne through the consumers’ end price and by all Western Australians through the taxpayer system, which results in subsidies. The opposition’s solution is zero per cent increases in price and $3.25 billion coming from the taxpayer. Our solution is a modest increase in price. There will be a heavy subsidy to the electricity utilities over the next four years, but we think it is taking a wrecking ball through the Western Australian economy to make that subsidy $3.25 billion over four years. It is just silliness. It might be electorally attractive for six months — Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mr E.S. Ripper : What is that figure? Mr C.C. PORTER : The Leader of the Opposition will see that figure as part of the budget. However, our price increases will be nowhere near 22 per cent or a larger figure than that. Mrs M.H. Roberts : You gave us the $3.25 billion figure last week. That is not a figure from last year; that was you last week. You said $3.25 billion. Are you saying the figure that you gave us last week is not correct? Mr C.C. PORTER : I am getting to that point of the member for Midland’s question. The cost of electricity is the cost of electricity. There are two ways in which utilities can recover that cost; one is through prices and the other is through the direct subsidies that the government pays to the electricity utilities. I say to the member that the former Labor government’s policy of freezing the price of electricity so that over the next four out years there was a zero per cent increase, zero per cent increase, zero per cent increase and zero per cent increase would, based on the cost structures that we have been informed now exist, require a direct operating subsidy to the electricity utilities of $3.25 billion. Mr E.S. Ripper : Why can you release that figure but not the percentage figure? Mr C.C. PORTER : Because that is part of the budget process. We are now scrutinising that claim about those costs. We are scrutinising that analysis of $3.25 billion. To put that figure in perspective, Labor’s entire capital spend budget in 2007–08 was $2.79 billion. If we were to freeze electricity prices, a figure in excess of the entire capital spend of the former government’s yearly spend would be directly pumped in electricity utilities. Surely that cannot be a great idea; it is a bad idea. We have to look at the appropriate mix of the rapidly increasing costs being borne through the consumers’ end price and by all Western Australians through the taxpayer system, which results in subsidies. The opposition’s solution is zero per cent increases in price and $3.25 billion coming from the taxpayer. Our solution is a modest increase in price. There will be a heavy subsidy to the electricity utilities over the next four years, but we think it is taking a wrecking ball through the Western Australian economy to make that subsidy $3.25 billion over four years. It is just silliness. It might be electorally attractive for six months — Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mr C.C. PORTER : The Leader of the Opposition will see that figure as part of the budget. However, our price increases will be nowhere near 22 per cent or a larger figure than that. Mrs M.H. Roberts : You gave us the $3.25 billion figure last week. That is not a figure from last year; that was you last week. You said $3.25 billion. Are you saying the figure that you gave us last week is not correct? Mr C.C. PORTER : I am getting to that point of the member for Midland’s question. The cost of electricity is the cost of electricity. There are two ways in which utilities can recover that cost; one is through prices and the other is through the direct subsidies that the government pays to the electricity utilities. I say to the member that the former Labor government’s policy of freezing the price of electricity so that over the next four out years there was a zero per cent increase, zero per cent increase, zero per cent increase and zero per cent increase would, based on the cost structures that we have been informed now exist, require a direct operating subsidy to the electricity utilities of $3.25 billion. Mr E.S. Ripper : Why can you release that figure but not the percentage figure? Mr C.C. PORTER : Because that is part of the budget process. We are now scrutinising that claim about those costs. We are scrutinising that analysis of $3.25 billion. To put that figure in perspective, Labor’s entire capital spend budget in 2007–08 was $2.79 billion. If we were to freeze electricity prices, a figure in excess of the entire capital spend of the former government’s yearly spend would be directly pumped in electricity utilities. Surely that cannot be a great idea; it is a bad idea. We have to look at the appropriate mix of the rapidly increasing costs being borne through the consumers’ end price and by all Western Australians through the taxpayer system, which results in subsidies. The opposition’s solution is zero per cent increases in price and $3.25 billion coming from the taxpayer. Our solution is a modest increase in price. There will be a heavy subsidy to the electricity utilities over the next four years, but we think it is taking a wrecking ball through the Western Australian economy to make that subsidy $3.25 billion over four years. It is just silliness. It might be electorally attractive for six months — Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mrs M.H. Roberts : You gave us the $3.25 billion figure last week. That is not a figure from last year; that was you last week. You said $3.25 billion. Are you saying the figure that you gave us last week is not correct? Mr C.C. PORTER : I am getting to that point of the member for Midland’s question. The cost of electricity is the cost of electricity. There are two ways in which utilities can recover that cost; one is through prices and the other is through the direct subsidies that the government pays to the electricity utilities. I say to the member that the former Labor government’s policy of freezing the price of electricity so that over the next four out years there was a zero per cent increase, zero per cent increase, zero per cent increase and zero per cent increase would, based on the cost structures that we have been informed now exist, require a direct operating subsidy to the electricity utilities of $3.25 billion. Mr E.S. Ripper : Why can you release that figure but not the percentage figure? Mr C.C. PORTER : Because that is part of the budget process. We are now scrutinising that claim about those costs. We are scrutinising that analysis of $3.25 billion. To put that figure in perspective, Labor’s entire capital spend budget in 2007–08 was $2.79 billion. If we were to freeze electricity prices, a figure in excess of the entire capital spend of the former government’s yearly spend would be directly pumped in electricity utilities. Surely that cannot be a great idea; it is a bad idea. We have to look at the appropriate mix of the rapidly increasing costs being borne through the consumers’ end price and by all Western Australians through the taxpayer system, which results in subsidies. The opposition’s solution is zero per cent increases in price and $3.25 billion coming from the taxpayer. Our solution is a modest increase in price. There will be a heavy subsidy to the electricity utilities over the next four years, but we think it is taking a wrecking ball through the Western Australian economy to make that subsidy $3.25 billion over four years. It is just silliness. It might be electorally attractive for six months — Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mr C.C. PORTER : I am getting to that point of the member for Midland’s question. The cost of electricity is the cost of electricity. There are two ways in which utilities can recover that cost; one is through prices and the other is through the direct subsidies that the government pays to the electricity utilities. I say to the member that the former Labor government’s policy of freezing the price of electricity so that over the next four out years there was a zero per cent increase, zero per cent increase, zero per cent increase and zero per cent increase would, based on the cost structures that we have been informed now exist, require a direct operating subsidy to the electricity utilities of $3.25 billion. Mr E.S. Ripper : Why can you release that figure but not the percentage figure? Mr C.C. PORTER : Because that is part of the budget process. We are now scrutinising that claim about those costs. We are scrutinising that analysis of $3.25 billion. To put that figure in perspective, Labor’s entire capital spend budget in 2007–08 was $2.79 billion. If we were to freeze electricity prices, a figure in excess of the entire capital spend of the former government’s yearly spend would be directly pumped in electricity utilities. Surely that cannot be a great idea; it is a bad idea. We have to look at the appropriate mix of the rapidly increasing costs being borne through the consumers’ end price and by all Western Australians through the taxpayer system, which results in subsidies. The opposition’s solution is zero per cent increases in price and $3.25 billion coming from the taxpayer. Our solution is a modest increase in price. There will be a heavy subsidy to the electricity utilities over the next four years, but we think it is taking a wrecking ball through the Western Australian economy to make that subsidy $3.25 billion over four years. It is just silliness. It might be electorally attractive for six months — Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mr E.S. Ripper : Why can you release that figure but not the percentage figure? Mr C.C. PORTER : Because that is part of the budget process. We are now scrutinising that claim about those costs. We are scrutinising that analysis of $3.25 billion. To put that figure in perspective, Labor’s entire capital spend budget in 2007–08 was $2.79 billion. If we were to freeze electricity prices, a figure in excess of the entire capital spend of the former government’s yearly spend would be directly pumped in electricity utilities. Surely that cannot be a great idea; it is a bad idea. We have to look at the appropriate mix of the rapidly increasing costs being borne through the consumers’ end price and by all Western Australians through the taxpayer system, which results in subsidies. The opposition’s solution is zero per cent increases in price and $3.25 billion coming from the taxpayer. Our solution is a modest increase in price. There will be a heavy subsidy to the electricity utilities over the next four years, but we think it is taking a wrecking ball through the Western Australian economy to make that subsidy $3.25 billion over four years. It is just silliness. It might be electorally attractive for six months — Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mr C.C. PORTER : Because that is part of the budget process. We are now scrutinising that claim about those costs. We are scrutinising that analysis of $3.25 billion. To put that figure in perspective, Labor’s entire capital spend budget in 2007–08 was $2.79 billion. If we were to freeze electricity prices, a figure in excess of the entire capital spend of the former government’s yearly spend would be directly pumped in electricity utilities. Surely that cannot be a great idea; it is a bad idea. We have to look at the appropriate mix of the rapidly increasing costs being borne through the consumers’ end price and by all Western Australians through the taxpayer system, which results in subsidies. The opposition’s solution is zero per cent increases in price and $3.25 billion coming from the taxpayer. Our solution is a modest increase in price. There will be a heavy subsidy to the electricity utilities over the next four years, but we think it is taking a wrecking ball through the Western Australian economy to make that subsidy $3.25 billion over four years. It is just silliness. It might be electorally attractive for six months — Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
(1) Does that cost equate to about $3 000 per family; and, is that how much extra families will have to pay in power costs? (2) What protection can the Treasurer offer families and pensioners from massively increased power bills? Mr C.C. PORTER replied: (1)–(2) That is a very fair question. What sits behind the $3.52 billion is that the budget papers show a 22 per cent forecast increase in electricity prices next year. That forecast increase will not occur. That forecast increase would have taken us to cost-reflectivity, in addition to the difficult decisions that we have had to make over the previous 18 months that have resulted in a 46 per cent increase in electricity costs. However, new information has come through to us from the utilities during the course of putting this budget together that suggests that the costs of generating, transmitting and producing electricity and delivering it to a household are increasing very rapidly. The increase in costs has been going on since the former government commissioned the review of the Office of Energy. In 2011 we find ourselves in a period when electricity is rapidly becoming increasingly costly to produce for a variety of reasons that relate to environmental policies and the costs of generation, fuel, labour and construction. The government has said that there will not be an increase of anything like the magnitude of 22 per cent next year. However, let me note that in the context of those increasing costs, the estimated figure of 22 per cent to bring us to cost-reflectivity in one year—that is, next year—is now wrong. The price increase required to bring us to cost-reflectivity is now higher than that. Mr E.S. Ripper : What is that figure? Mr C.C. PORTER : The Leader of the Opposition will see that figure as part of the budget. However, our price increases will be nowhere near 22 per cent or a larger figure than that. Mrs M.H. Roberts : You gave us the $3.25 billion figure last week. That is not a figure from last year; that was you last week. You said $3.25 billion. Are you saying the figure that you gave us last week is not correct? Mr C.C. PORTER : I am getting to that point of the member for Midland’s question. The cost of electricity is the cost of electricity. There are two ways in which utilities can recover that cost; one is through prices and the other is through the direct subsidies that the government pays to the electricity utilities. I say to the member that the former Labor government’s policy of freezing the price of electricity so that over the next four out years there was a zero per cent increase, zero per cent increase, zero per cent increase and zero per cent increase would, based on the cost structures that we have been informed now exist, require a direct operating subsidy to the electricity utilities of $3.25 billion. Mr E.S. Ripper : Why can you release that figure but not the percentage figure? Mr C.C. PORTER : Because that is part of the budget process. We are now scrutinising that claim about those costs. We are scrutinising that analysis of $3.25 billion. To put that figure in perspective, Labor’s entire capital spend budget in 2007–08 was $2.79 billion. If we were to freeze electricity prices, a figure in excess of the entire capital spend of the former government’s yearly spend would be directly pumped in electricity utilities. Surely that cannot be a great idea; it is a bad idea. We have to look at the appropriate mix of the rapidly increasing costs being borne through the consumers’ end price and by all Western Australians through the taxpayer system, which results in subsidies. The opposition’s solution is zero per cent increases in price and $3.25 billion coming from the taxpayer. Our solution is a modest increase in price. There will be a heavy subsidy to the electricity utilities over the next four years, but we think it is taking a wrecking ball through the Western Australian economy to make that subsidy $3.25 billion over four years. It is just silliness. It might be electorally attractive for six months — Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
(2) What protection can the Treasurer offer families and pensioners from massively increased power bills? Mr C.C. PORTER replied: (1)–(2) That is a very fair question. What sits behind the $3.52 billion is that the budget papers show a 22 per cent forecast increase in electricity prices next year. That forecast increase will not occur. That forecast increase would have taken us to cost-reflectivity, in addition to the difficult decisions that we have had to make over the previous 18 months that have resulted in a 46 per cent increase in electricity costs. However, new information has come through to us from the utilities during the course of putting this budget together that suggests that the costs of generating, transmitting and producing electricity and delivering it to a household are increasing very rapidly. The increase in costs has been going on since the former government commissioned the review of the Office of Energy. In 2011 we find ourselves in a period when electricity is rapidly becoming increasingly costly to produce for a variety of reasons that relate to environmental policies and the costs of generation, fuel, labour and construction. The government has said that there will not be an increase of anything like the magnitude of 22 per cent next year. However, let me note that in the context of those increasing costs, the estimated figure of 22 per cent to bring us to cost-reflectivity in one year—that is, next year—is now wrong. The price increase required to bring us to cost-reflectivity is now higher than that. Mr E.S. Ripper : What is that figure? Mr C.C. PORTER : The Leader of the Opposition will see that figure as part of the budget. However, our price increases will be nowhere near 22 per cent or a larger figure than that. Mrs M.H. Roberts : You gave us the $3.25 billion figure last week. That is not a figure from last year; that was you last week. You said $3.25 billion. Are you saying the figure that you gave us last week is not correct? Mr C.C. PORTER : I am getting to that point of the member for Midland’s question. The cost of electricity is the cost of electricity. There are two ways in which utilities can recover that cost; one is through prices and the other is through the direct subsidies that the government pays to the electricity utilities. I say to the member that the former Labor government’s policy of freezing the price of electricity so that over the next four out years there was a zero per cent increase, zero per cent increase, zero per cent increase and zero per cent increase would, based on the cost structures that we have been informed now exist, require a direct operating subsidy to the electricity utilities of $3.25 billion. Mr E.S. Ripper : Why can you release that figure but not the percentage figure? Mr C.C. PORTER : Because that is part of the budget process. We are now scrutinising that claim about those costs. We are scrutinising that analysis of $3.25 billion. To put that figure in perspective, Labor’s entire capital spend budget in 2007–08 was $2.79 billion. If we were to freeze electricity prices, a figure in excess of the entire capital spend of the former government’s yearly spend would be directly pumped in electricity utilities. Surely that cannot be a great idea; it is a bad idea. We have to look at the appropriate mix of the rapidly increasing costs being borne through the consumers’ end price and by all Western Australians through the taxpayer system, which results in subsidies. The opposition’s solution is zero per cent increases in price and $3.25 billion coming from the taxpayer. Our solution is a modest increase in price. There will be a heavy subsidy to the electricity utilities over the next four years, but we think it is taking a wrecking ball through the Western Australian economy to make that subsidy $3.25 billion over four years. It is just silliness. It might be electorally attractive for six months — Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mr C.C. PORTER replied: (1)–(2) That is a very fair question. What sits behind the $3.52 billion is that the budget papers show a 22 per cent forecast increase in electricity prices next year. That forecast increase will not occur. That forecast increase would have taken us to cost-reflectivity, in addition to the difficult decisions that we have had to make over the previous 18 months that have resulted in a 46 per cent increase in electricity costs. However, new information has come through to us from the utilities during the course of putting this budget together that suggests that the costs of generating, transmitting and producing electricity and delivering it to a household are increasing very rapidly. The increase in costs has been going on since the former government commissioned the review of the Office of Energy. In 2011 we find ourselves in a period when electricity is rapidly becoming increasingly costly to produce for a variety of reasons that relate to environmental policies and the costs of generation, fuel, labour and construction. The government has said that there will not be an increase of anything like the magnitude of 22 per cent next year. However, let me note that in the context of those increasing costs, the estimated figure of 22 per cent to bring us to cost-reflectivity in one year—that is, next year—is now wrong. The price increase required to bring us to cost-reflectivity is now higher than that. Mr E.S. Ripper : What is that figure? Mr C.C. PORTER : The Leader of the Opposition will see that figure as part of the budget. However, our price increases will be nowhere near 22 per cent or a larger figure than that. Mrs M.H. Roberts : You gave us the $3.25 billion figure last week. That is not a figure from last year; that was you last week. You said $3.25 billion. Are you saying the figure that you gave us last week is not correct? Mr C.C. PORTER : I am getting to that point of the member for Midland’s question. The cost of electricity is the cost of electricity. There are two ways in which utilities can recover that cost; one is through prices and the other is through the direct subsidies that the government pays to the electricity utilities. I say to the member that the former Labor government’s policy of freezing the price of electricity so that over the next four out years there was a zero per cent increase, zero per cent increase, zero per cent increase and zero per cent increase would, based on the cost structures that we have been informed now exist, require a direct operating subsidy to the electricity utilities of $3.25 billion. Mr E.S. Ripper : Why can you release that figure but not the percentage figure? Mr C.C. PORTER : Because that is part of the budget process. We are now scrutinising that claim about those costs. We are scrutinising that analysis of $3.25 billion. To put that figure in perspective, Labor’s entire capital spend budget in 2007–08 was $2.79 billion. If we were to freeze electricity prices, a figure in excess of the entire capital spend of the former government’s yearly spend would be directly pumped in electricity utilities. Surely that cannot be a great idea; it is a bad idea. We have to look at the appropriate mix of the rapidly increasing costs being borne through the consumers’ end price and by all Western Australians through the taxpayer system, which results in subsidies. The opposition’s solution is zero per cent increases in price and $3.25 billion coming from the taxpayer. Our solution is a modest increase in price. There will be a heavy subsidy to the electricity utilities over the next four years, but we think it is taking a wrecking ball through the Western Australian economy to make that subsidy $3.25 billion over four years. It is just silliness. It might be electorally attractive for six months — Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
(1)–(2) That is a very fair question. What sits behind the $3.52 billion is that the budget papers show a 22 per cent forecast increase in electricity prices next year. That forecast increase will not occur. That forecast increase would have taken us to cost-reflectivity, in addition to the difficult decisions that we have had to make over the previous 18 months that have resulted in a 46 per cent increase in electricity costs. However, new information has come through to us from the utilities during the course of putting this budget together that suggests that the costs of generating, transmitting and producing electricity and delivering it to a household are increasing very rapidly. The increase in costs has been going on since the former government commissioned the review of the Office of Energy. In 2011 we find ourselves in a period when electricity is rapidly becoming increasingly costly to produce for a variety of reasons that relate to environmental policies and the costs of generation, fuel, labour and construction. The government has said that there will not be an increase of anything like the magnitude of 22 per cent next year. However, let me note that in the context of those increasing costs, the estimated figure of 22 per cent to bring us to cost-reflectivity in one year—that is, next year—is now wrong. The price increase required to bring us to cost-reflectivity is now higher than that. Mr E.S. Ripper : What is that figure? Mr C.C. PORTER : The Leader of the Opposition will see that figure as part of the budget. However, our price increases will be nowhere near 22 per cent or a larger figure than that. Mrs M.H. Roberts : You gave us the $3.25 billion figure last week. That is not a figure from last year; that was you last week. You said $3.25 billion. Are you saying the figure that you gave us last week is not correct? Mr C.C. PORTER : I am getting to that point of the member for Midland’s question. The cost of electricity is the cost of electricity. There are two ways in which utilities can recover that cost; one is through prices and the other is through the direct subsidies that the government pays to the electricity utilities. I say to the member that the former Labor government’s policy of freezing the price of electricity so that over the next four out years there was a zero per cent increase, zero per cent increase, zero per cent increase and zero per cent increase would, based on the cost structures that we have been informed now exist, require a direct operating subsidy to the electricity utilities of $3.25 billion. Mr E.S. Ripper : Why can you release that figure but not the percentage figure? Mr C.C. PORTER : Because that is part of the budget process. We are now scrutinising that claim about those costs. We are scrutinising that analysis of $3.25 billion. To put that figure in perspective, Labor’s entire capital spend budget in 2007–08 was $2.79 billion. If we were to freeze electricity prices, a figure in excess of the entire capital spend of the former government’s yearly spend would be directly pumped in electricity utilities. Surely that cannot be a great idea; it is a bad idea. We have to look at the appropriate mix of the rapidly increasing costs being borne through the consumers’ end price and by all Western Australians through the taxpayer system, which results in subsidies. The opposition’s solution is zero per cent increases in price and $3.25 billion coming from the taxpayer. Our solution is a modest increase in price. There will be a heavy subsidy to the electricity utilities over the next four years, but we think it is taking a wrecking ball through the Western Australian economy to make that subsidy $3.25 billion over four years. It is just silliness. It might be electorally attractive for six months — Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mr E.S. Ripper : What is that figure? Mr C.C. PORTER : The Leader of the Opposition will see that figure as part of the budget. However, our price increases will be nowhere near 22 per cent or a larger figure than that. Mrs M.H. Roberts : You gave us the $3.25 billion figure last week. That is not a figure from last year; that was you last week. You said $3.25 billion. Are you saying the figure that you gave us last week is not correct? Mr C.C. PORTER : I am getting to that point of the member for Midland’s question. The cost of electricity is the cost of electricity. There are two ways in which utilities can recover that cost; one is through prices and the other is through the direct subsidies that the government pays to the electricity utilities. I say to the member that the former Labor government’s policy of freezing the price of electricity so that over the next four out years there was a zero per cent increase, zero per cent increase, zero per cent increase and zero per cent increase would, based on the cost structures that we have been informed now exist, require a direct operating subsidy to the electricity utilities of $3.25 billion. Mr E.S. Ripper : Why can you release that figure but not the percentage figure? Mr C.C. PORTER : Because that is part of the budget process. We are now scrutinising that claim about those costs. We are scrutinising that analysis of $3.25 billion. To put that figure in perspective, Labor’s entire capital spend budget in 2007–08 was $2.79 billion. If we were to freeze electricity prices, a figure in excess of the entire capital spend of the former government’s yearly spend would be directly pumped in electricity utilities. Surely that cannot be a great idea; it is a bad idea. We have to look at the appropriate mix of the rapidly increasing costs being borne through the consumers’ end price and by all Western Australians through the taxpayer system, which results in subsidies. The opposition’s solution is zero per cent increases in price and $3.25 billion coming from the taxpayer. Our solution is a modest increase in price. There will be a heavy subsidy to the electricity utilities over the next four years, but we think it is taking a wrecking ball through the Western Australian economy to make that subsidy $3.25 billion over four years. It is just silliness. It might be electorally attractive for six months — Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mr C.C. PORTER : The Leader of the Opposition will see that figure as part of the budget. However, our price increases will be nowhere near 22 per cent or a larger figure than that. Mrs M.H. Roberts : You gave us the $3.25 billion figure last week. That is not a figure from last year; that was you last week. You said $3.25 billion. Are you saying the figure that you gave us last week is not correct? Mr C.C. PORTER : I am getting to that point of the member for Midland’s question. The cost of electricity is the cost of electricity. There are two ways in which utilities can recover that cost; one is through prices and the other is through the direct subsidies that the government pays to the electricity utilities. I say to the member that the former Labor government’s policy of freezing the price of electricity so that over the next four out years there was a zero per cent increase, zero per cent increase, zero per cent increase and zero per cent increase would, based on the cost structures that we have been informed now exist, require a direct operating subsidy to the electricity utilities of $3.25 billion. Mr E.S. Ripper : Why can you release that figure but not the percentage figure? Mr C.C. PORTER : Because that is part of the budget process. We are now scrutinising that claim about those costs. We are scrutinising that analysis of $3.25 billion. To put that figure in perspective, Labor’s entire capital spend budget in 2007–08 was $2.79 billion. If we were to freeze electricity prices, a figure in excess of the entire capital spend of the former government’s yearly spend would be directly pumped in electricity utilities. Surely that cannot be a great idea; it is a bad idea. We have to look at the appropriate mix of the rapidly increasing costs being borne through the consumers’ end price and by all Western Australians through the taxpayer system, which results in subsidies. The opposition’s solution is zero per cent increases in price and $3.25 billion coming from the taxpayer. Our solution is a modest increase in price. There will be a heavy subsidy to the electricity utilities over the next four years, but we think it is taking a wrecking ball through the Western Australian economy to make that subsidy $3.25 billion over four years. It is just silliness. It might be electorally attractive for six months — Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mrs M.H. Roberts : You gave us the $3.25 billion figure last week. That is not a figure from last year; that was you last week. You said $3.25 billion. Are you saying the figure that you gave us last week is not correct? Mr C.C. PORTER : I am getting to that point of the member for Midland’s question. The cost of electricity is the cost of electricity. There are two ways in which utilities can recover that cost; one is through prices and the other is through the direct subsidies that the government pays to the electricity utilities. I say to the member that the former Labor government’s policy of freezing the price of electricity so that over the next four out years there was a zero per cent increase, zero per cent increase, zero per cent increase and zero per cent increase would, based on the cost structures that we have been informed now exist, require a direct operating subsidy to the electricity utilities of $3.25 billion. Mr E.S. Ripper : Why can you release that figure but not the percentage figure? Mr C.C. PORTER : Because that is part of the budget process. We are now scrutinising that claim about those costs. We are scrutinising that analysis of $3.25 billion. To put that figure in perspective, Labor’s entire capital spend budget in 2007–08 was $2.79 billion. If we were to freeze electricity prices, a figure in excess of the entire capital spend of the former government’s yearly spend would be directly pumped in electricity utilities. Surely that cannot be a great idea; it is a bad idea. We have to look at the appropriate mix of the rapidly increasing costs being borne through the consumers’ end price and by all Western Australians through the taxpayer system, which results in subsidies. The opposition’s solution is zero per cent increases in price and $3.25 billion coming from the taxpayer. Our solution is a modest increase in price. There will be a heavy subsidy to the electricity utilities over the next four years, but we think it is taking a wrecking ball through the Western Australian economy to make that subsidy $3.25 billion over four years. It is just silliness. It might be electorally attractive for six months — Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mr C.C. PORTER : I am getting to that point of the member for Midland’s question. The cost of electricity is the cost of electricity. There are two ways in which utilities can recover that cost; one is through prices and the other is through the direct subsidies that the government pays to the electricity utilities. I say to the member that the former Labor government’s policy of freezing the price of electricity so that over the next four out years there was a zero per cent increase, zero per cent increase, zero per cent increase and zero per cent increase would, based on the cost structures that we have been informed now exist, require a direct operating subsidy to the electricity utilities of $3.25 billion. Mr E.S. Ripper : Why can you release that figure but not the percentage figure? Mr C.C. PORTER : Because that is part of the budget process. We are now scrutinising that claim about those costs. We are scrutinising that analysis of $3.25 billion. To put that figure in perspective, Labor’s entire capital spend budget in 2007–08 was $2.79 billion. If we were to freeze electricity prices, a figure in excess of the entire capital spend of the former government’s yearly spend would be directly pumped in electricity utilities. Surely that cannot be a great idea; it is a bad idea. We have to look at the appropriate mix of the rapidly increasing costs being borne through the consumers’ end price and by all Western Australians through the taxpayer system, which results in subsidies. The opposition’s solution is zero per cent increases in price and $3.25 billion coming from the taxpayer. Our solution is a modest increase in price. There will be a heavy subsidy to the electricity utilities over the next four years, but we think it is taking a wrecking ball through the Western Australian economy to make that subsidy $3.25 billion over four years. It is just silliness. It might be electorally attractive for six months — Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mr E.S. Ripper : Why can you release that figure but not the percentage figure? Mr C.C. PORTER : Because that is part of the budget process. We are now scrutinising that claim about those costs. We are scrutinising that analysis of $3.25 billion. To put that figure in perspective, Labor’s entire capital spend budget in 2007–08 was $2.79 billion. If we were to freeze electricity prices, a figure in excess of the entire capital spend of the former government’s yearly spend would be directly pumped in electricity utilities. Surely that cannot be a great idea; it is a bad idea. We have to look at the appropriate mix of the rapidly increasing costs being borne through the consumers’ end price and by all Western Australians through the taxpayer system, which results in subsidies. The opposition’s solution is zero per cent increases in price and $3.25 billion coming from the taxpayer. Our solution is a modest increase in price. There will be a heavy subsidy to the electricity utilities over the next four years, but we think it is taking a wrecking ball through the Western Australian economy to make that subsidy $3.25 billion over four years. It is just silliness. It might be electorally attractive for six months — Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mr C.C. PORTER : Because that is part of the budget process. We are now scrutinising that claim about those costs. We are scrutinising that analysis of $3.25 billion. To put that figure in perspective, Labor’s entire capital spend budget in 2007–08 was $2.79 billion. If we were to freeze electricity prices, a figure in excess of the entire capital spend of the former government’s yearly spend would be directly pumped in electricity utilities. Surely that cannot be a great idea; it is a bad idea. We have to look at the appropriate mix of the rapidly increasing costs being borne through the consumers’ end price and by all Western Australians through the taxpayer system, which results in subsidies. The opposition’s solution is zero per cent increases in price and $3.25 billion coming from the taxpayer. Our solution is a modest increase in price. There will be a heavy subsidy to the electricity utilities over the next four years, but we think it is taking a wrecking ball through the Western Australian economy to make that subsidy $3.25 billion over four years. It is just silliness. It might be electorally attractive for six months — Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mrs M.H. Roberts : That’s not our policy. Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mr C.C. PORTER : It is the Labor Party’s policy; the opposition said its policy was to freeze electricity prices. The Labor Party has said in this place a number of times that its policy is to freeze electricity prices. Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mrs M.H. Roberts : We said a one-year freeze; you know that. You are deliberately misleading. Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mr C.C. PORTER : It is the opposition’s policy; it has said this four or five times! Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mrs M.H. Roberts : We said a one-year freeze—that is all we have said. Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mr C.C. PORTER : The Labor policy is that if it makes it into government next year, it will freeze electricity prices. I have news for the Labor Party: it will not make it into government next year. Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Several members interjected. Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
Mr C.C. PORTER : I am very confident about that point. The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
The opposition knows that that is a ridiculous promise, and only one that can be made under the expectation of never having to deliver on it. The Labor Party’s policy of freezing electricity prices is one of the worst possible examples of rampant stupidity that could be driven into an economy. It is Labor’s policy—and it is dumb.
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