❓ The Premier defends the proposed restructure of Western Power, arguing it will bring choice, competition, and flexibility, while accusing the opposition of being reactionary and resistant to necessary reforms. He distinguishes the plan from privatisation, which he acknowledges leads to price increases.
AnsweredQoN 1253Legislative Assembly
QuestionView source ↗
I refer the Premier to his letter to the editor of The West Australian regarding his proposal to break up Western Power in which he stated that there would be no price increases. I further refer the Premier to a letter of 9 October 2002 from Western Power’s chairman, Malcolm Macpherson, to the Minister for Energy on the Western Power board’s view of electricity reform, which stated - . . . directors would not support the disaggregation of the generation and retail sections of Western Power in the short to medium term. (1) On what basis is the Premier ignoring the concerns of the Western Power board, as expressed in the letter, that breaking up Western Power will reduce profitability, reduce value to the owner, reduce payments to government, raise concerns about generation’s longer term viability and threaten retail’s short to medium term viability? (2) Will the Premier now admit that breaking up Western Power will place upward pressure on electricity prices, as similar reforms have done in other States, such as the 25 per cent increase in power costs experienced by South Australian householders this year? That is what breaking up Western Power is about, Premier: higher prices for householders. Dr G.I. GALLOP
AnswerView source ↗
(1)-(2) Mr Speaker, I am very interested in the reference to South Australia and that “P” word - privatisation. That is exactly what South Australia did. If a privatised system is introduced into a competitive market, of course there will be upward pressure on prices; that has happened in other jurisdictions. However, we have taken that into account in the model we have developed for Western Australia. We are very committed to a restructure of Western Power so that the State of Western Australia will have choice, competition and flexibility and therefore the public institutions that it needs to meet the challenges of development in the twenty-first century. That is essentially what electricity reform is about, and that is the reason it is supported by the business community of Western Australia. As the Leader of the Opposition has indicated on the question of economic reform and giving choice to consumers in the retail trading market and liquor stores, the Liberal Party is a reactionary party and has no positive view of the future of Western Australia. The Liberal Party believes that all the current institutions are perfect and do not need to be reformed. As a result of that, it will be condemned as a reactionary party. I am very proud to say that the Australian Labor Party is a reform party, but a sensible reform party. The electricity reforms the Government proposes are good reforms. I remind the Leader of the Opposition that electricity reform was a commitment that the Labor Party gave at the last election and we are following up that commitment in the community. There has been extensive consultation throughout Western Australia on this policy. There is no doubt that some people, particularly those associated with Western Australia’s history and the current Western Power bureaucracy, are against these changes; however, that is the traditional resistance to change that occurs in many public organisations and we must make a decision in that context. Do we hold up important reforms or do we cave in to vested interests? We will not cave in to vested interests; we will proceed with reform. The reforms have been very well crafted. They will preserve the public institutions of Western Power; they will restructure the organisation; they will lead to a much better outcome for rural and regional consumers in Western Australia; and, as the Minister for Energy has outlined on frequent occasions, there will be a real focus on improving infrastructure in rural and regional areas. How can we look to the future, with all the potential development in Western Australia, and maintain a vertically integrated structure? It does not make sense and it will not create the choice and flexibility we need for change and development. Yes, some people oppose these changes, but the Government of Western Australia does not share that view. This reactionary Liberal Party is holding up the important changes that need to be made so that Western Australia can provide people with jobs and opportunities.
(2) Will the Premier now admit that breaking up Western Power will place upward pressure on electricity prices, as similar reforms have done in other States, such as the 25 per cent increase in power costs experienced by South Australian householders this year? That is what breaking up Western Power is about, Premier: higher prices for householders. Dr G.I. GALLOP replied: (1)-(2) Mr Speaker, I am very interested in the reference to South Australia and that “P” word - privatisation. That is exactly what South Australia did. If a privatised system is introduced into a competitive market, of course there will be upward pressure on prices; that has happened in other jurisdictions. However, we have taken that into account in the model we have developed for Western Australia. We are very committed to a restructure of Western Power so that the State of Western Australia will have choice, competition and flexibility and therefore the public institutions that it needs to meet the challenges of development in the twenty-first century. That is essentially what electricity reform is about, and that is the reason it is supported by the business community of Western Australia. As the Leader of the Opposition has indicated on the question of economic reform and giving choice to consumers in the retail trading market and liquor stores, the Liberal Party is a reactionary party and has no positive view of the future of Western Australia. The Liberal Party believes that all the current institutions are perfect and do not need to be reformed. As a result of that, it will be condemned as a reactionary party. I am very proud to say that the Australian Labor Party is a reform party, but a sensible reform party. The electricity reforms the Government proposes are good reforms. I remind the Leader of the Opposition that electricity reform was a commitment that the Labor Party gave at the last election and we are following up that commitment in the community. There has been extensive consultation throughout Western Australia on this policy. There is no doubt that some people, particularly those associated with Western Australia’s history and the current Western Power bureaucracy, are against these changes; however, that is the traditional resistance to change that occurs in many public organisations and we must make a decision in that context. Do we hold up important reforms or do we cave in to vested interests? We will not cave in to vested interests; we will proceed with reform. The reforms have been very well crafted. They will preserve the public institutions of Western Power; they will restructure the organisation; they will lead to a much better outcome for rural and regional consumers in Western Australia; and, as the Minister for Energy has outlined on frequent occasions, there will be a real focus on improving infrastructure in rural and regional areas. How can we look to the future, with all the potential development in Western Australia, and maintain a vertically integrated structure? It does not make sense and it will not create the choice and flexibility we need for change and development. Yes, some people oppose these changes, but the Government of Western Australia does not share that view. This reactionary Liberal Party is holding up the important changes that need to be made so that Western Australia can provide people with jobs and opportunities.
Dr G.I. GALLOP replied: (1)-(2) Mr Speaker, I am very interested in the reference to South Australia and that “P” word - privatisation. That is exactly what South Australia did. If a privatised system is introduced into a competitive market, of course there will be upward pressure on prices; that has happened in other jurisdictions. However, we have taken that into account in the model we have developed for Western Australia. We are very committed to a restructure of Western Power so that the State of Western Australia will have choice, competition and flexibility and therefore the public institutions that it needs to meet the challenges of development in the twenty-first century. That is essentially what electricity reform is about, and that is the reason it is supported by the business community of Western Australia. As the Leader of the Opposition has indicated on the question of economic reform and giving choice to consumers in the retail trading market and liquor stores, the Liberal Party is a reactionary party and has no positive view of the future of Western Australia. The Liberal Party believes that all the current institutions are perfect and do not need to be reformed. As a result of that, it will be condemned as a reactionary party. I am very proud to say that the Australian Labor Party is a reform party, but a sensible reform party. The electricity reforms the Government proposes are good reforms. I remind the Leader of the Opposition that electricity reform was a commitment that the Labor Party gave at the last election and we are following up that commitment in the community. There has been extensive consultation throughout Western Australia on this policy. There is no doubt that some people, particularly those associated with Western Australia’s history and the current Western Power bureaucracy, are against these changes; however, that is the traditional resistance to change that occurs in many public organisations and we must make a decision in that context. Do we hold up important reforms or do we cave in to vested interests? We will not cave in to vested interests; we will proceed with reform. The reforms have been very well crafted. They will preserve the public institutions of Western Power; they will restructure the organisation; they will lead to a much better outcome for rural and regional consumers in Western Australia; and, as the Minister for Energy has outlined on frequent occasions, there will be a real focus on improving infrastructure in rural and regional areas. How can we look to the future, with all the potential development in Western Australia, and maintain a vertically integrated structure? It does not make sense and it will not create the choice and flexibility we need for change and development. Yes, some people oppose these changes, but the Government of Western Australia does not share that view. This reactionary Liberal Party is holding up the important changes that need to be made so that Western Australia can provide people with jobs and opportunities.
(1)-(2) Mr Speaker, I am very interested in the reference to South Australia and that “P” word - privatisation. That is exactly what South Australia did. If a privatised system is introduced into a competitive market, of course there will be upward pressure on prices; that has happened in other jurisdictions. However, we have taken that into account in the model we have developed for Western Australia. We are very committed to a restructure of Western Power so that the State of Western Australia will have choice, competition and flexibility and therefore the public institutions that it needs to meet the challenges of development in the twenty-first century. That is essentially what electricity reform is about, and that is the reason it is supported by the business community of Western Australia. As the Leader of the Opposition has indicated on the question of economic reform and giving choice to consumers in the retail trading market and liquor stores, the Liberal Party is a reactionary party and has no positive view of the future of Western Australia. The Liberal Party believes that all the current institutions are perfect and do not need to be reformed. As a result of that, it will be condemned as a reactionary party. I am very proud to say that the Australian Labor Party is a reform party, but a sensible reform party. The electricity reforms the Government proposes are good reforms. I remind the Leader of the Opposition that electricity reform was a commitment that the Labor Party gave at the last election and we are following up that commitment in the community. There has been extensive consultation throughout Western Australia on this policy. There is no doubt that some people, particularly those associated with Western Australia’s history and the current Western Power bureaucracy, are against these changes; however, that is the traditional resistance to change that occurs in many public organisations and we must make a decision in that context. Do we hold up important reforms or do we cave in to vested interests? We will not cave in to vested interests; we will proceed with reform. The reforms have been very well crafted. They will preserve the public institutions of Western Power; they will restructure the organisation; they will lead to a much better outcome for rural and regional consumers in Western Australia; and, as the Minister for Energy has outlined on frequent occasions, there will be a real focus on improving infrastructure in rural and regional areas. How can we look to the future, with all the potential development in Western Australia, and maintain a vertically integrated structure? It does not make sense and it will not create the choice and flexibility we need for change and development. Yes, some people oppose these changes, but the Government of Western Australia does not share that view. This reactionary Liberal Party is holding up the important changes that need to be made so that Western Australia can provide people with jobs and opportunities.
(2) Will the Premier now admit that breaking up Western Power will place upward pressure on electricity prices, as similar reforms have done in other States, such as the 25 per cent increase in power costs experienced by South Australian householders this year? That is what breaking up Western Power is about, Premier: higher prices for householders. Dr G.I. GALLOP replied: (1)-(2) Mr Speaker, I am very interested in the reference to South Australia and that “P” word - privatisation. That is exactly what South Australia did. If a privatised system is introduced into a competitive market, of course there will be upward pressure on prices; that has happened in other jurisdictions. However, we have taken that into account in the model we have developed for Western Australia. We are very committed to a restructure of Western Power so that the State of Western Australia will have choice, competition and flexibility and therefore the public institutions that it needs to meet the challenges of development in the twenty-first century. That is essentially what electricity reform is about, and that is the reason it is supported by the business community of Western Australia. As the Leader of the Opposition has indicated on the question of economic reform and giving choice to consumers in the retail trading market and liquor stores, the Liberal Party is a reactionary party and has no positive view of the future of Western Australia. The Liberal Party believes that all the current institutions are perfect and do not need to be reformed. As a result of that, it will be condemned as a reactionary party. I am very proud to say that the Australian Labor Party is a reform party, but a sensible reform party. The electricity reforms the Government proposes are good reforms. I remind the Leader of the Opposition that electricity reform was a commitment that the Labor Party gave at the last election and we are following up that commitment in the community. There has been extensive consultation throughout Western Australia on this policy. There is no doubt that some people, particularly those associated with Western Australia’s history and the current Western Power bureaucracy, are against these changes; however, that is the traditional resistance to change that occurs in many public organisations and we must make a decision in that context. Do we hold up important reforms or do we cave in to vested interests? We will not cave in to vested interests; we will proceed with reform. The reforms have been very well crafted. They will preserve the public institutions of Western Power; they will restructure the organisation; they will lead to a much better outcome for rural and regional consumers in Western Australia; and, as the Minister for Energy has outlined on frequent occasions, there will be a real focus on improving infrastructure in rural and regional areas. How can we look to the future, with all the potential development in Western Australia, and maintain a vertically integrated structure? It does not make sense and it will not create the choice and flexibility we need for change and development. Yes, some people oppose these changes, but the Government of Western Australia does not share that view. This reactionary Liberal Party is holding up the important changes that need to be made so that Western Australia can provide people with jobs and opportunities.
Dr G.I. GALLOP replied: (1)-(2) Mr Speaker, I am very interested in the reference to South Australia and that “P” word - privatisation. That is exactly what South Australia did. If a privatised system is introduced into a competitive market, of course there will be upward pressure on prices; that has happened in other jurisdictions. However, we have taken that into account in the model we have developed for Western Australia. We are very committed to a restructure of Western Power so that the State of Western Australia will have choice, competition and flexibility and therefore the public institutions that it needs to meet the challenges of development in the twenty-first century. That is essentially what electricity reform is about, and that is the reason it is supported by the business community of Western Australia. As the Leader of the Opposition has indicated on the question of economic reform and giving choice to consumers in the retail trading market and liquor stores, the Liberal Party is a reactionary party and has no positive view of the future of Western Australia. The Liberal Party believes that all the current institutions are perfect and do not need to be reformed. As a result of that, it will be condemned as a reactionary party. I am very proud to say that the Australian Labor Party is a reform party, but a sensible reform party. The electricity reforms the Government proposes are good reforms. I remind the Leader of the Opposition that electricity reform was a commitment that the Labor Party gave at the last election and we are following up that commitment in the community. There has been extensive consultation throughout Western Australia on this policy. There is no doubt that some people, particularly those associated with Western Australia’s history and the current Western Power bureaucracy, are against these changes; however, that is the traditional resistance to change that occurs in many public organisations and we must make a decision in that context. Do we hold up important reforms or do we cave in to vested interests? We will not cave in to vested interests; we will proceed with reform. The reforms have been very well crafted. They will preserve the public institutions of Western Power; they will restructure the organisation; they will lead to a much better outcome for rural and regional consumers in Western Australia; and, as the Minister for Energy has outlined on frequent occasions, there will be a real focus on improving infrastructure in rural and regional areas. How can we look to the future, with all the potential development in Western Australia, and maintain a vertically integrated structure? It does not make sense and it will not create the choice and flexibility we need for change and development. Yes, some people oppose these changes, but the Government of Western Australia does not share that view. This reactionary Liberal Party is holding up the important changes that need to be made so that Western Australia can provide people with jobs and opportunities.
(1)-(2) Mr Speaker, I am very interested in the reference to South Australia and that “P” word - privatisation. That is exactly what South Australia did. If a privatised system is introduced into a competitive market, of course there will be upward pressure on prices; that has happened in other jurisdictions. However, we have taken that into account in the model we have developed for Western Australia. We are very committed to a restructure of Western Power so that the State of Western Australia will have choice, competition and flexibility and therefore the public institutions that it needs to meet the challenges of development in the twenty-first century. That is essentially what electricity reform is about, and that is the reason it is supported by the business community of Western Australia. As the Leader of the Opposition has indicated on the question of economic reform and giving choice to consumers in the retail trading market and liquor stores, the Liberal Party is a reactionary party and has no positive view of the future of Western Australia. The Liberal Party believes that all the current institutions are perfect and do not need to be reformed. As a result of that, it will be condemned as a reactionary party. I am very proud to say that the Australian Labor Party is a reform party, but a sensible reform party. The electricity reforms the Government proposes are good reforms. I remind the Leader of the Opposition that electricity reform was a commitment that the Labor Party gave at the last election and we are following up that commitment in the community. There has been extensive consultation throughout Western Australia on this policy. There is no doubt that some people, particularly those associated with Western Australia’s history and the current Western Power bureaucracy, are against these changes; however, that is the traditional resistance to change that occurs in many public organisations and we must make a decision in that context. Do we hold up important reforms or do we cave in to vested interests? We will not cave in to vested interests; we will proceed with reform. The reforms have been very well crafted. They will preserve the public institutions of Western Power; they will restructure the organisation; they will lead to a much better outcome for rural and regional consumers in Western Australia; and, as the Minister for Energy has outlined on frequent occasions, there will be a real focus on improving infrastructure in rural and regional areas. How can we look to the future, with all the potential development in Western Australia, and maintain a vertically integrated structure? It does not make sense and it will not create the choice and flexibility we need for change and development. Yes, some people oppose these changes, but the Government of Western Australia does not share that view. This reactionary Liberal Party is holding up the important changes that need to be made so that Western Australia can provide people with jobs and opportunities.
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