❓ Question on the Electricity Reform Task Force report, specifically regarding the promised electricity price fall and the potential devaluation of Western Power due to the proposed break-up. The Minister avoids direct confirmation, highlighting industry support and economic benefits.
AnsweredQoN 213Legislative Assembly
QuestionView source ↗
I refer the minister to the report of the Electricity Reform Task Force, which was released late yesterday and which justifies breaking up Western Power, with a promise of an 8.5 per cent fall in household electricity prices. (1) Can the minister confirm that this fall in electricity prices, which the minister has so far refused to guarantee, is only an average fall over a period of 20 years? (2) Has the minister received any advice that suggests the value of Western Power will fall dramatically if it is broken up as the Electricity Reform Task Force has suggested; and, if so, by how much will the value of Western Power fall? Mr E.S. RIPPER
AnswerView source ↗
(1)-(2) I am surprised that the Opposition should ask a question on electricity reform. I hope that opposition members have been looking at press releases put out by industry groups. I will inform the House of some of the headlines of those press releases. The Chamber of Minerals and Energy headline is “Chamber encourages all Western Australians to support the Government’s new power plan”. The Chamber of Commerce and Industry of Western Australia headline is “Electricity reform strategy ‘first class’ - no time to lose in implementation”. The Property Council of Australia headline is “Electricity reform task force (ERTF) recommendations welcomed to cut power costs for WA business”. The Electricity Reform Task Force had input from a number of consultancies, one of which was the Allen Consulting Group, which worked in conjunction with McLennan Magasanik Associates and the Centre for Policy Studies. They looked at the benefits for the economy of Western Australia of projected falls in electricity prices as a result of the reform recommendation. They suggested that gross state product could be $300 million per annum higher in 2010, increasing to $590 million per annum higher by 2020. In short, they estimated that the net benefit from this reform program to the State’s economy in present value terms could be $1 billion. The impacts of the reform will be long term. I understand that the falls in the price of electricity are to occur over that longer period, according to the Electricity Reform Task Force recommendation. Mr J.H.D. Day: It is 20 years. Mr E.S. RIPPER: That is my understanding of the Electricity Reform Task Force recommendation. However, the report is there for the member to read. When the member reads it, he will find that if he wants to oppose electricity reform, he will be opposing something that will be of tremendous economic benefit to this State. If he wants to oppose something that is worth $1 billion to our economy in net present value terms, he can go ahead and do it. If he wants to oppose something that will reduce power prices for important businesses in this State and remove a strategic inhibition to our development, he can go ahead and oppose it, but I will not be doing so. As for the question of costs, yes, consultancies also looked at the costs. All that material is on the Electricity Reform Task Force - Mr C.J. Barnett interjected. Mr E.S. RIPPER: Will the Leader of the Opposition be patient enough to wait until the end of the sentence? Perhaps he might interject then, but listen now. All that material is on the task force web site for members to look at. Of course there are costs involved in disaggregating Western Power and setting up the market structure. On the basis of the information presented to the Government by the Electricity Reform Task Force, it is estimated that it will cost between $52 million and $60 million on a one-off basis, with additional operating costs of between $22 million and $29 million. The task force also considered the question of the financial impact on the State. A significant appendix deals with that issue.
(1) Can the minister confirm that this fall in electricity prices, which the minister has so far refused to guarantee, is only an average fall over a period of 20 years? (2) Has the minister received any advice that suggests the value of Western Power will fall dramatically if it is broken up as the Electricity Reform Task Force has suggested; and, if so, by how much will the value of Western Power fall? Mr E.S. RIPPER replied: (1)-(2) I am surprised that the Opposition should ask a question on electricity reform. I hope that opposition members have been looking at press releases put out by industry groups. I will inform the House of some of the headlines of those press releases. The Chamber of Minerals and Energy headline is “Chamber encourages all Western Australians to support the Government’s new power plan”. The Chamber of Commerce and Industry of Western Australia headline is “Electricity reform strategy ‘first class’ - no time to lose in implementation”. The Property Council of Australia headline is “Electricity reform task force (ERTF) recommendations welcomed to cut power costs for WA business”. The Electricity Reform Task Force had input from a number of consultancies, one of which was the Allen Consulting Group, which worked in conjunction with McLennan Magasanik Associates and the Centre for Policy Studies. They looked at the benefits for the economy of Western Australia of projected falls in electricity prices as a result of the reform recommendation. They suggested that gross state product could be $300 million per annum higher in 2010, increasing to $590 million per annum higher by 2020. In short, they estimated that the net benefit from this reform program to the State’s economy in present value terms could be $1 billion. The impacts of the reform will be long term. I understand that the falls in the price of electricity are to occur over that longer period, according to the Electricity Reform Task Force recommendation. Mr J.H.D. Day: It is 20 years. Mr E.S. RIPPER: That is my understanding of the Electricity Reform Task Force recommendation. However, the report is there for the member to read. When the member reads it, he will find that if he wants to oppose electricity reform, he will be opposing something that will be of tremendous economic benefit to this State. If he wants to oppose something that is worth $1 billion to our economy in net present value terms, he can go ahead and do it. If he wants to oppose something that will reduce power prices for important businesses in this State and remove a strategic inhibition to our development, he can go ahead and oppose it, but I will not be doing so. As for the question of costs, yes, consultancies also looked at the costs. All that material is on the Electricity Reform Task Force - Mr C.J. Barnett interjected. Mr E.S. RIPPER: Will the Leader of the Opposition be patient enough to wait until the end of the sentence? Perhaps he might interject then, but listen now. All that material is on the task force web site for members to look at. Of course there are costs involved in disaggregating Western Power and setting up the market structure. On the basis of the information presented to the Government by the Electricity Reform Task Force, it is estimated that it will cost between $52 million and $60 million on a one-off basis, with additional operating costs of between $22 million and $29 million. The task force also considered the question of the financial impact on the State. A significant appendix deals with that issue.
(2) Has the minister received any advice that suggests the value of Western Power will fall dramatically if it is broken up as the Electricity Reform Task Force has suggested; and, if so, by how much will the value of Western Power fall? Mr E.S. RIPPER replied: (1)-(2) I am surprised that the Opposition should ask a question on electricity reform. I hope that opposition members have been looking at press releases put out by industry groups. I will inform the House of some of the headlines of those press releases. The Chamber of Minerals and Energy headline is “Chamber encourages all Western Australians to support the Government’s new power plan”. The Chamber of Commerce and Industry of Western Australia headline is “Electricity reform strategy ‘first class’ - no time to lose in implementation”. The Property Council of Australia headline is “Electricity reform task force (ERTF) recommendations welcomed to cut power costs for WA business”. The Electricity Reform Task Force had input from a number of consultancies, one of which was the Allen Consulting Group, which worked in conjunction with McLennan Magasanik Associates and the Centre for Policy Studies. They looked at the benefits for the economy of Western Australia of projected falls in electricity prices as a result of the reform recommendation. They suggested that gross state product could be $300 million per annum higher in 2010, increasing to $590 million per annum higher by 2020. In short, they estimated that the net benefit from this reform program to the State’s economy in present value terms could be $1 billion. The impacts of the reform will be long term. I understand that the falls in the price of electricity are to occur over that longer period, according to the Electricity Reform Task Force recommendation. Mr J.H.D. Day: It is 20 years. Mr E.S. RIPPER: That is my understanding of the Electricity Reform Task Force recommendation. However, the report is there for the member to read. When the member reads it, he will find that if he wants to oppose electricity reform, he will be opposing something that will be of tremendous economic benefit to this State. If he wants to oppose something that is worth $1 billion to our economy in net present value terms, he can go ahead and do it. If he wants to oppose something that will reduce power prices for important businesses in this State and remove a strategic inhibition to our development, he can go ahead and oppose it, but I will not be doing so. As for the question of costs, yes, consultancies also looked at the costs. All that material is on the Electricity Reform Task Force - Mr C.J. Barnett interjected. Mr E.S. RIPPER: Will the Leader of the Opposition be patient enough to wait until the end of the sentence? Perhaps he might interject then, but listen now. All that material is on the task force web site for members to look at. Of course there are costs involved in disaggregating Western Power and setting up the market structure. On the basis of the information presented to the Government by the Electricity Reform Task Force, it is estimated that it will cost between $52 million and $60 million on a one-off basis, with additional operating costs of between $22 million and $29 million. The task force also considered the question of the financial impact on the State. A significant appendix deals with that issue.
Mr E.S. RIPPER replied: (1)-(2) I am surprised that the Opposition should ask a question on electricity reform. I hope that opposition members have been looking at press releases put out by industry groups. I will inform the House of some of the headlines of those press releases. The Chamber of Minerals and Energy headline is “Chamber encourages all Western Australians to support the Government’s new power plan”. The Chamber of Commerce and Industry of Western Australia headline is “Electricity reform strategy ‘first class’ - no time to lose in implementation”. The Property Council of Australia headline is “Electricity reform task force (ERTF) recommendations welcomed to cut power costs for WA business”. The Electricity Reform Task Force had input from a number of consultancies, one of which was the Allen Consulting Group, which worked in conjunction with McLennan Magasanik Associates and the Centre for Policy Studies. They looked at the benefits for the economy of Western Australia of projected falls in electricity prices as a result of the reform recommendation. They suggested that gross state product could be $300 million per annum higher in 2010, increasing to $590 million per annum higher by 2020. In short, they estimated that the net benefit from this reform program to the State’s economy in present value terms could be $1 billion. The impacts of the reform will be long term. I understand that the falls in the price of electricity are to occur over that longer period, according to the Electricity Reform Task Force recommendation. Mr J.H.D. Day: It is 20 years. Mr E.S. RIPPER: That is my understanding of the Electricity Reform Task Force recommendation. However, the report is there for the member to read. When the member reads it, he will find that if he wants to oppose electricity reform, he will be opposing something that will be of tremendous economic benefit to this State. If he wants to oppose something that is worth $1 billion to our economy in net present value terms, he can go ahead and do it. If he wants to oppose something that will reduce power prices for important businesses in this State and remove a strategic inhibition to our development, he can go ahead and oppose it, but I will not be doing so. As for the question of costs, yes, consultancies also looked at the costs. All that material is on the Electricity Reform Task Force - Mr C.J. Barnett interjected. Mr E.S. RIPPER: Will the Leader of the Opposition be patient enough to wait until the end of the sentence? Perhaps he might interject then, but listen now. All that material is on the task force web site for members to look at. Of course there are costs involved in disaggregating Western Power and setting up the market structure. On the basis of the information presented to the Government by the Electricity Reform Task Force, it is estimated that it will cost between $52 million and $60 million on a one-off basis, with additional operating costs of between $22 million and $29 million. The task force also considered the question of the financial impact on the State. A significant appendix deals with that issue.
(1)-(2) I am surprised that the Opposition should ask a question on electricity reform. I hope that opposition members have been looking at press releases put out by industry groups. I will inform the House of some of the headlines of those press releases. The Chamber of Minerals and Energy headline is “Chamber encourages all Western Australians to support the Government’s new power plan”. The Chamber of Commerce and Industry of Western Australia headline is “Electricity reform strategy ‘first class’ - no time to lose in implementation”. The Property Council of Australia headline is “Electricity reform task force (ERTF) recommendations welcomed to cut power costs for WA business”. The Electricity Reform Task Force had input from a number of consultancies, one of which was the Allen Consulting Group, which worked in conjunction with McLennan Magasanik Associates and the Centre for Policy Studies. They looked at the benefits for the economy of Western Australia of projected falls in electricity prices as a result of the reform recommendation. They suggested that gross state product could be $300 million per annum higher in 2010, increasing to $590 million per annum higher by 2020. In short, they estimated that the net benefit from this reform program to the State’s economy in present value terms could be $1 billion. The impacts of the reform will be long term. I understand that the falls in the price of electricity are to occur over that longer period, according to the Electricity Reform Task Force recommendation. Mr J.H.D. Day: It is 20 years. Mr E.S. RIPPER: That is my understanding of the Electricity Reform Task Force recommendation. However, the report is there for the member to read. When the member reads it, he will find that if he wants to oppose electricity reform, he will be opposing something that will be of tremendous economic benefit to this State. If he wants to oppose something that is worth $1 billion to our economy in net present value terms, he can go ahead and do it. If he wants to oppose something that will reduce power prices for important businesses in this State and remove a strategic inhibition to our development, he can go ahead and oppose it, but I will not be doing so. As for the question of costs, yes, consultancies also looked at the costs. All that material is on the Electricity Reform Task Force - Mr C.J. Barnett interjected. Mr E.S. RIPPER: Will the Leader of the Opposition be patient enough to wait until the end of the sentence? Perhaps he might interject then, but listen now. All that material is on the task force web site for members to look at. Of course there are costs involved in disaggregating Western Power and setting up the market structure. On the basis of the information presented to the Government by the Electricity Reform Task Force, it is estimated that it will cost between $52 million and $60 million on a one-off basis, with additional operating costs of between $22 million and $29 million. The task force also considered the question of the financial impact on the State. A significant appendix deals with that issue.
Mr J.H.D. Day: It is 20 years. Mr E.S. RIPPER: That is my understanding of the Electricity Reform Task Force recommendation. However, the report is there for the member to read. When the member reads it, he will find that if he wants to oppose electricity reform, he will be opposing something that will be of tremendous economic benefit to this State. If he wants to oppose something that is worth $1 billion to our economy in net present value terms, he can go ahead and do it. If he wants to oppose something that will reduce power prices for important businesses in this State and remove a strategic inhibition to our development, he can go ahead and oppose it, but I will not be doing so. As for the question of costs, yes, consultancies also looked at the costs. All that material is on the Electricity Reform Task Force - Mr C.J. Barnett interjected. Mr E.S. RIPPER: Will the Leader of the Opposition be patient enough to wait until the end of the sentence? Perhaps he might interject then, but listen now. All that material is on the task force web site for members to look at. Of course there are costs involved in disaggregating Western Power and setting up the market structure. On the basis of the information presented to the Government by the Electricity Reform Task Force, it is estimated that it will cost between $52 million and $60 million on a one-off basis, with additional operating costs of between $22 million and $29 million. The task force also considered the question of the financial impact on the State. A significant appendix deals with that issue.
Mr E.S. RIPPER: That is my understanding of the Electricity Reform Task Force recommendation. However, the report is there for the member to read. When the member reads it, he will find that if he wants to oppose electricity reform, he will be opposing something that will be of tremendous economic benefit to this State. If he wants to oppose something that is worth $1 billion to our economy in net present value terms, he can go ahead and do it. If he wants to oppose something that will reduce power prices for important businesses in this State and remove a strategic inhibition to our development, he can go ahead and oppose it, but I will not be doing so. As for the question of costs, yes, consultancies also looked at the costs. All that material is on the Electricity Reform Task Force - Mr C.J. Barnett interjected. Mr E.S. RIPPER: Will the Leader of the Opposition be patient enough to wait until the end of the sentence? Perhaps he might interject then, but listen now. All that material is on the task force web site for members to look at. Of course there are costs involved in disaggregating Western Power and setting up the market structure. On the basis of the information presented to the Government by the Electricity Reform Task Force, it is estimated that it will cost between $52 million and $60 million on a one-off basis, with additional operating costs of between $22 million and $29 million. The task force also considered the question of the financial impact on the State. A significant appendix deals with that issue.
As for the question of costs, yes, consultancies also looked at the costs. All that material is on the Electricity Reform Task Force - Mr C.J. Barnett interjected. Mr E.S. RIPPER: Will the Leader of the Opposition be patient enough to wait until the end of the sentence? Perhaps he might interject then, but listen now. All that material is on the task force web site for members to look at. Of course there are costs involved in disaggregating Western Power and setting up the market structure. On the basis of the information presented to the Government by the Electricity Reform Task Force, it is estimated that it will cost between $52 million and $60 million on a one-off basis, with additional operating costs of between $22 million and $29 million. The task force also considered the question of the financial impact on the State. A significant appendix deals with that issue.
Mr C.J. Barnett interjected. Mr E.S. RIPPER: Will the Leader of the Opposition be patient enough to wait until the end of the sentence? Perhaps he might interject then, but listen now. All that material is on the task force web site for members to look at. Of course there are costs involved in disaggregating Western Power and setting up the market structure. On the basis of the information presented to the Government by the Electricity Reform Task Force, it is estimated that it will cost between $52 million and $60 million on a one-off basis, with additional operating costs of between $22 million and $29 million. The task force also considered the question of the financial impact on the State. A significant appendix deals with that issue.
Mr E.S. RIPPER: Will the Leader of the Opposition be patient enough to wait until the end of the sentence? Perhaps he might interject then, but listen now. All that material is on the task force web site for members to look at. Of course there are costs involved in disaggregating Western Power and setting up the market structure. On the basis of the information presented to the Government by the Electricity Reform Task Force, it is estimated that it will cost between $52 million and $60 million on a one-off basis, with additional operating costs of between $22 million and $29 million. The task force also considered the question of the financial impact on the State. A significant appendix deals with that issue.
All that material is on the task force web site for members to look at. Of course there are costs involved in disaggregating Western Power and setting up the market structure. On the basis of the information presented to the Government by the Electricity Reform Task Force, it is estimated that it will cost between $52 million and $60 million on a one-off basis, with additional operating costs of between $22 million and $29 million. The task force also considered the question of the financial impact on the State. A significant appendix deals with that issue.
(1) Can the minister confirm that this fall in electricity prices, which the minister has so far refused to guarantee, is only an average fall over a period of 20 years? (2) Has the minister received any advice that suggests the value of Western Power will fall dramatically if it is broken up as the Electricity Reform Task Force has suggested; and, if so, by how much will the value of Western Power fall? Mr E.S. RIPPER replied: (1)-(2) I am surprised that the Opposition should ask a question on electricity reform. I hope that opposition members have been looking at press releases put out by industry groups. I will inform the House of some of the headlines of those press releases. The Chamber of Minerals and Energy headline is “Chamber encourages all Western Australians to support the Government’s new power plan”. The Chamber of Commerce and Industry of Western Australia headline is “Electricity reform strategy ‘first class’ - no time to lose in implementation”. The Property Council of Australia headline is “Electricity reform task force (ERTF) recommendations welcomed to cut power costs for WA business”. The Electricity Reform Task Force had input from a number of consultancies, one of which was the Allen Consulting Group, which worked in conjunction with McLennan Magasanik Associates and the Centre for Policy Studies. They looked at the benefits for the economy of Western Australia of projected falls in electricity prices as a result of the reform recommendation. They suggested that gross state product could be $300 million per annum higher in 2010, increasing to $590 million per annum higher by 2020. In short, they estimated that the net benefit from this reform program to the State’s economy in present value terms could be $1 billion. The impacts of the reform will be long term. I understand that the falls in the price of electricity are to occur over that longer period, according to the Electricity Reform Task Force recommendation. Mr J.H.D. Day: It is 20 years. Mr E.S. RIPPER: That is my understanding of the Electricity Reform Task Force recommendation. However, the report is there for the member to read. When the member reads it, he will find that if he wants to oppose electricity reform, he will be opposing something that will be of tremendous economic benefit to this State. If he wants to oppose something that is worth $1 billion to our economy in net present value terms, he can go ahead and do it. If he wants to oppose something that will reduce power prices for important businesses in this State and remove a strategic inhibition to our development, he can go ahead and oppose it, but I will not be doing so. As for the question of costs, yes, consultancies also looked at the costs. All that material is on the Electricity Reform Task Force - Mr C.J. Barnett interjected. Mr E.S. RIPPER: Will the Leader of the Opposition be patient enough to wait until the end of the sentence? Perhaps he might interject then, but listen now. All that material is on the task force web site for members to look at. Of course there are costs involved in disaggregating Western Power and setting up the market structure. On the basis of the information presented to the Government by the Electricity Reform Task Force, it is estimated that it will cost between $52 million and $60 million on a one-off basis, with additional operating costs of between $22 million and $29 million. The task force also considered the question of the financial impact on the State. A significant appendix deals with that issue.
(2) Has the minister received any advice that suggests the value of Western Power will fall dramatically if it is broken up as the Electricity Reform Task Force has suggested; and, if so, by how much will the value of Western Power fall? Mr E.S. RIPPER replied: (1)-(2) I am surprised that the Opposition should ask a question on electricity reform. I hope that opposition members have been looking at press releases put out by industry groups. I will inform the House of some of the headlines of those press releases. The Chamber of Minerals and Energy headline is “Chamber encourages all Western Australians to support the Government’s new power plan”. The Chamber of Commerce and Industry of Western Australia headline is “Electricity reform strategy ‘first class’ - no time to lose in implementation”. The Property Council of Australia headline is “Electricity reform task force (ERTF) recommendations welcomed to cut power costs for WA business”. The Electricity Reform Task Force had input from a number of consultancies, one of which was the Allen Consulting Group, which worked in conjunction with McLennan Magasanik Associates and the Centre for Policy Studies. They looked at the benefits for the economy of Western Australia of projected falls in electricity prices as a result of the reform recommendation. They suggested that gross state product could be $300 million per annum higher in 2010, increasing to $590 million per annum higher by 2020. In short, they estimated that the net benefit from this reform program to the State’s economy in present value terms could be $1 billion. The impacts of the reform will be long term. I understand that the falls in the price of electricity are to occur over that longer period, according to the Electricity Reform Task Force recommendation. Mr J.H.D. Day: It is 20 years. Mr E.S. RIPPER: That is my understanding of the Electricity Reform Task Force recommendation. However, the report is there for the member to read. When the member reads it, he will find that if he wants to oppose electricity reform, he will be opposing something that will be of tremendous economic benefit to this State. If he wants to oppose something that is worth $1 billion to our economy in net present value terms, he can go ahead and do it. If he wants to oppose something that will reduce power prices for important businesses in this State and remove a strategic inhibition to our development, he can go ahead and oppose it, but I will not be doing so. As for the question of costs, yes, consultancies also looked at the costs. All that material is on the Electricity Reform Task Force - Mr C.J. Barnett interjected. Mr E.S. RIPPER: Will the Leader of the Opposition be patient enough to wait until the end of the sentence? Perhaps he might interject then, but listen now. All that material is on the task force web site for members to look at. Of course there are costs involved in disaggregating Western Power and setting up the market structure. On the basis of the information presented to the Government by the Electricity Reform Task Force, it is estimated that it will cost between $52 million and $60 million on a one-off basis, with additional operating costs of between $22 million and $29 million. The task force also considered the question of the financial impact on the State. A significant appendix deals with that issue.
Mr E.S. RIPPER replied: (1)-(2) I am surprised that the Opposition should ask a question on electricity reform. I hope that opposition members have been looking at press releases put out by industry groups. I will inform the House of some of the headlines of those press releases. The Chamber of Minerals and Energy headline is “Chamber encourages all Western Australians to support the Government’s new power plan”. The Chamber of Commerce and Industry of Western Australia headline is “Electricity reform strategy ‘first class’ - no time to lose in implementation”. The Property Council of Australia headline is “Electricity reform task force (ERTF) recommendations welcomed to cut power costs for WA business”. The Electricity Reform Task Force had input from a number of consultancies, one of which was the Allen Consulting Group, which worked in conjunction with McLennan Magasanik Associates and the Centre for Policy Studies. They looked at the benefits for the economy of Western Australia of projected falls in electricity prices as a result of the reform recommendation. They suggested that gross state product could be $300 million per annum higher in 2010, increasing to $590 million per annum higher by 2020. In short, they estimated that the net benefit from this reform program to the State’s economy in present value terms could be $1 billion. The impacts of the reform will be long term. I understand that the falls in the price of electricity are to occur over that longer period, according to the Electricity Reform Task Force recommendation. Mr J.H.D. Day: It is 20 years. Mr E.S. RIPPER: That is my understanding of the Electricity Reform Task Force recommendation. However, the report is there for the member to read. When the member reads it, he will find that if he wants to oppose electricity reform, he will be opposing something that will be of tremendous economic benefit to this State. If he wants to oppose something that is worth $1 billion to our economy in net present value terms, he can go ahead and do it. If he wants to oppose something that will reduce power prices for important businesses in this State and remove a strategic inhibition to our development, he can go ahead and oppose it, but I will not be doing so. As for the question of costs, yes, consultancies also looked at the costs. All that material is on the Electricity Reform Task Force - Mr C.J. Barnett interjected. Mr E.S. RIPPER: Will the Leader of the Opposition be patient enough to wait until the end of the sentence? Perhaps he might interject then, but listen now. All that material is on the task force web site for members to look at. Of course there are costs involved in disaggregating Western Power and setting up the market structure. On the basis of the information presented to the Government by the Electricity Reform Task Force, it is estimated that it will cost between $52 million and $60 million on a one-off basis, with additional operating costs of between $22 million and $29 million. The task force also considered the question of the financial impact on the State. A significant appendix deals with that issue.
(1)-(2) I am surprised that the Opposition should ask a question on electricity reform. I hope that opposition members have been looking at press releases put out by industry groups. I will inform the House of some of the headlines of those press releases. The Chamber of Minerals and Energy headline is “Chamber encourages all Western Australians to support the Government’s new power plan”. The Chamber of Commerce and Industry of Western Australia headline is “Electricity reform strategy ‘first class’ - no time to lose in implementation”. The Property Council of Australia headline is “Electricity reform task force (ERTF) recommendations welcomed to cut power costs for WA business”. The Electricity Reform Task Force had input from a number of consultancies, one of which was the Allen Consulting Group, which worked in conjunction with McLennan Magasanik Associates and the Centre for Policy Studies. They looked at the benefits for the economy of Western Australia of projected falls in electricity prices as a result of the reform recommendation. They suggested that gross state product could be $300 million per annum higher in 2010, increasing to $590 million per annum higher by 2020. In short, they estimated that the net benefit from this reform program to the State’s economy in present value terms could be $1 billion. The impacts of the reform will be long term. I understand that the falls in the price of electricity are to occur over that longer period, according to the Electricity Reform Task Force recommendation. Mr J.H.D. Day: It is 20 years. Mr E.S. RIPPER: That is my understanding of the Electricity Reform Task Force recommendation. However, the report is there for the member to read. When the member reads it, he will find that if he wants to oppose electricity reform, he will be opposing something that will be of tremendous economic benefit to this State. If he wants to oppose something that is worth $1 billion to our economy in net present value terms, he can go ahead and do it. If he wants to oppose something that will reduce power prices for important businesses in this State and remove a strategic inhibition to our development, he can go ahead and oppose it, but I will not be doing so. As for the question of costs, yes, consultancies also looked at the costs. All that material is on the Electricity Reform Task Force - Mr C.J. Barnett interjected. Mr E.S. RIPPER: Will the Leader of the Opposition be patient enough to wait until the end of the sentence? Perhaps he might interject then, but listen now. All that material is on the task force web site for members to look at. Of course there are costs involved in disaggregating Western Power and setting up the market structure. On the basis of the information presented to the Government by the Electricity Reform Task Force, it is estimated that it will cost between $52 million and $60 million on a one-off basis, with additional operating costs of between $22 million and $29 million. The task force also considered the question of the financial impact on the State. A significant appendix deals with that issue.
Mr J.H.D. Day: It is 20 years. Mr E.S. RIPPER: That is my understanding of the Electricity Reform Task Force recommendation. However, the report is there for the member to read. When the member reads it, he will find that if he wants to oppose electricity reform, he will be opposing something that will be of tremendous economic benefit to this State. If he wants to oppose something that is worth $1 billion to our economy in net present value terms, he can go ahead and do it. If he wants to oppose something that will reduce power prices for important businesses in this State and remove a strategic inhibition to our development, he can go ahead and oppose it, but I will not be doing so. As for the question of costs, yes, consultancies also looked at the costs. All that material is on the Electricity Reform Task Force - Mr C.J. Barnett interjected. Mr E.S. RIPPER: Will the Leader of the Opposition be patient enough to wait until the end of the sentence? Perhaps he might interject then, but listen now. All that material is on the task force web site for members to look at. Of course there are costs involved in disaggregating Western Power and setting up the market structure. On the basis of the information presented to the Government by the Electricity Reform Task Force, it is estimated that it will cost between $52 million and $60 million on a one-off basis, with additional operating costs of between $22 million and $29 million. The task force also considered the question of the financial impact on the State. A significant appendix deals with that issue.
Mr E.S. RIPPER: That is my understanding of the Electricity Reform Task Force recommendation. However, the report is there for the member to read. When the member reads it, he will find that if he wants to oppose electricity reform, he will be opposing something that will be of tremendous economic benefit to this State. If he wants to oppose something that is worth $1 billion to our economy in net present value terms, he can go ahead and do it. If he wants to oppose something that will reduce power prices for important businesses in this State and remove a strategic inhibition to our development, he can go ahead and oppose it, but I will not be doing so. As for the question of costs, yes, consultancies also looked at the costs. All that material is on the Electricity Reform Task Force - Mr C.J. Barnett interjected. Mr E.S. RIPPER: Will the Leader of the Opposition be patient enough to wait until the end of the sentence? Perhaps he might interject then, but listen now. All that material is on the task force web site for members to look at. Of course there are costs involved in disaggregating Western Power and setting up the market structure. On the basis of the information presented to the Government by the Electricity Reform Task Force, it is estimated that it will cost between $52 million and $60 million on a one-off basis, with additional operating costs of between $22 million and $29 million. The task force also considered the question of the financial impact on the State. A significant appendix deals with that issue.
As for the question of costs, yes, consultancies also looked at the costs. All that material is on the Electricity Reform Task Force - Mr C.J. Barnett interjected. Mr E.S. RIPPER: Will the Leader of the Opposition be patient enough to wait until the end of the sentence? Perhaps he might interject then, but listen now. All that material is on the task force web site for members to look at. Of course there are costs involved in disaggregating Western Power and setting up the market structure. On the basis of the information presented to the Government by the Electricity Reform Task Force, it is estimated that it will cost between $52 million and $60 million on a one-off basis, with additional operating costs of between $22 million and $29 million. The task force also considered the question of the financial impact on the State. A significant appendix deals with that issue.
Mr C.J. Barnett interjected. Mr E.S. RIPPER: Will the Leader of the Opposition be patient enough to wait until the end of the sentence? Perhaps he might interject then, but listen now. All that material is on the task force web site for members to look at. Of course there are costs involved in disaggregating Western Power and setting up the market structure. On the basis of the information presented to the Government by the Electricity Reform Task Force, it is estimated that it will cost between $52 million and $60 million on a one-off basis, with additional operating costs of between $22 million and $29 million. The task force also considered the question of the financial impact on the State. A significant appendix deals with that issue.
Mr E.S. RIPPER: Will the Leader of the Opposition be patient enough to wait until the end of the sentence? Perhaps he might interject then, but listen now. All that material is on the task force web site for members to look at. Of course there are costs involved in disaggregating Western Power and setting up the market structure. On the basis of the information presented to the Government by the Electricity Reform Task Force, it is estimated that it will cost between $52 million and $60 million on a one-off basis, with additional operating costs of between $22 million and $29 million. The task force also considered the question of the financial impact on the State. A significant appendix deals with that issue.
All that material is on the task force web site for members to look at. Of course there are costs involved in disaggregating Western Power and setting up the market structure. On the basis of the information presented to the Government by the Electricity Reform Task Force, it is estimated that it will cost between $52 million and $60 million on a one-off basis, with additional operating costs of between $22 million and $29 million. The task force also considered the question of the financial impact on the State. A significant appendix deals with that issue.
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