❓ Mr. Johnston questions the Minister for Energy on how privatising Western Power will avoid under-investment in maintenance, referencing the Victorian electricity network failures. The Minister refutes the premise and defends the regulatory framework in WA.
AnsweredQoN 456Legislative Assembly
QuestionView source ↗
WESTERN POWER —
WOOD POLE ORDER
456. Mr W.J. JOHNSTON to the Minister for
Energy:
I note the Minister for Energy's
answer to question without notice 413 on 22 June 2016, regarding the success of
Western Power's public sector employees in completing the power pole
replacement program. How will the privatisation of Western Power avoid the
risks of under-investment in ongoing maintenance as occurred in the privatised
network in Victoria that led to over 100 deaths and more than $700 million in
compensation?
WOOD POLE ORDER
456. Mr W.J. JOHNSTON to the Minister for
Energy:
I note the Minister for Energy's
answer to question without notice 413 on 22 June 2016, regarding the success of
Western Power's public sector employees in completing the power pole
replacement program. How will the privatisation of Western Power avoid the
risks of under-investment in ongoing maintenance as occurred in the privatised
network in Victoria that led to over 100 deaths and more than $700 million in
compensation?
AnswerView source ↗
The last statement about the issues
in Victoria is false. There was a serious fire in Victoria. I think it was
centred around Mansfield some years ago. I think there was a royal commission
into the issue. I know the member's friends in the Electrical Trades
Union WA have argued that the royal commission found, according to that claim,
the fire was caused by the privatised entity. It did not. It found that the
fires, in part, were started by poles and other issues related to the network
there.
As the member knows, in Western Australia
pole and wire safety and security are regulated by local agencies and the
Economic Regulation Authority, and even when we change the regulatory
structure, if we are successful in doing so, to the national one, the safety
security standard will regulated by the ERA and associated bodies. They are the
ones that determine the standards by which the private or public sector
operates in this state and they will ensure that remains the case. I have
confidence in our regulatory bodies and in the standards that they implement;
they will be the same whether they are publicly or privately owned. I might add
that in the eastern states in the governance that regulates the Victorian
system, or the East Coast Integrated System, the standards are almost identical
to ours. That is, an independent body determines what needs to be invested, and
the standards and securities that these pole and wire companies implement. That
is done by an independent agency, and audited regularly, with penalties and
expertise to enforce them. So the argument that the member is dutifully putting
forward in this house on behalf of his union friends is false—false.
in Victoria is false. There was a serious fire in Victoria. I think it was
centred around Mansfield some years ago. I think there was a royal commission
into the issue. I know the member's friends in the Electrical Trades
Union WA have argued that the royal commission found, according to that claim,
the fire was caused by the privatised entity. It did not. It found that the
fires, in part, were started by poles and other issues related to the network
there.
As the member knows, in Western Australia
pole and wire safety and security are regulated by local agencies and the
Economic Regulation Authority, and even when we change the regulatory
structure, if we are successful in doing so, to the national one, the safety
security standard will regulated by the ERA and associated bodies. They are the
ones that determine the standards by which the private or public sector
operates in this state and they will ensure that remains the case. I have
confidence in our regulatory bodies and in the standards that they implement;
they will be the same whether they are publicly or privately owned. I might add
that in the eastern states in the governance that regulates the Victorian
system, or the East Coast Integrated System, the standards are almost identical
to ours. That is, an independent body determines what needs to be invested, and
the standards and securities that these pole and wire companies implement. That
is done by an independent agency, and audited regularly, with penalties and
expertise to enforce them. So the argument that the member is dutifully putting
forward in this house on behalf of his union friends is false—false.
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