❓ Minister Nahan responds to concerns about streetlight tariff increases raised by Mrs. Godfrey, criticising the Member for Cannington's statements on the issue and outlining the history and future projections of streetlight charges, accusing the City of Canning of blaming the state government for rate increases.
AnsweredQoN 538Legislative Assembly
QuestionView source ↗
STREETLIGHT TARIFFS
538. Mrs G.J. GODFREY to the
Minister for Energy:
I refer to an article on the front page of the Canning Examiner featuring the member
for Cannington regarding increases in streetlight tariffs. Can the minister
please update the house on the streetlight tariff changes?
538. Mrs G.J. GODFREY to the
Minister for Energy:
I refer to an article on the front page of the Canning Examiner featuring the member
for Cannington regarding increases in streetlight tariffs. Can the minister
please update the house on the streetlight tariff changes?
AnswerView source ↗
I thank the member for the question; it is a very relevant
one. The member for Cannington has been standing under streetlights quite
often. Unfortunately, they are not shining light or accuracy onto his
statements. He was on the radio the other day with John McGlue. He basically
accused us, because in the budget we indicated that we were considering selling
or leasing some of the streetlights, of threatening to steal them. This is what
he said in the interview about me —
He's got this bizarre idea
about selling the light poles that are on streets that don't have
Western Power infrastructure attached to them.
In other words, he is saying that if
they are not owned by Western Power, we are going to sell them anyway. We will
not do that; members opposite might do that, but we will not. He then accused
us of refusing to sell them to local governments. I made it quite clear in this
house that if we put the poles on the market and local government wants to buy
some, if they make the highest bid, they will get them. The member then said on
the radio that it is a very strange and stupid idea because super funds do not
want to buy them. I can tell the member for Cannington that the super funds
that members of his former union put their money into have come to me and asked
to buy them. The member said that it is a dumb idea because Western Power might
not be able to maintain them, the super funds might own them, and the local
government might use them and pay for electricity. Yes. If � that is the case, the member says it is a dumb
idea. I can assure members that if someone buys the poles and Western Power
maintains them, it will charge the buyer the maintenance fee.
However, let us get onto
streetlights. The member for Cannington made a statement on how changes to
streetlight charges will jack up rates. Let me go through what we have done.
Yes, it is true that in 2011–12 we increased streetlight charges
significantly by 30 per cent. That was done because we inherited a mess from
members opposite. We inherited dysfunctional electricity from two sides.
Several members interjected.
The
SPEAKER : Order, members!
Dr
M.D. NAHAN : First, the previous government made a commitment to charge cost
reflectivity for streetlights. When we came into government in 2008, the former
government had made a commitment to raise prices by 70 per cent. We increased
prices significantly and we did pass that onto streetlights. However, do
members know what happened in the subsequent three years—2012–13,
2013–14 and 2014–15? The member for Cannington says that the streetlight
tariff went up by 11.8 per cent; however, it actually went down by five per cent.
I know a lot of local governments, spurred on by the member for Cannington,
have used the increase in streetlight tariffs as a justification for rate
increases—well, that is fiction. In this budget, we committed to having
cost-reflective streetlights. The budget did say 7.5 per cent in 2015–16
and 16 per cent in 2016–2017, but it also had a footnote—and it
is now the third year in a row that we have tricked these guys. The Economic
Regulation Authority has said in its report that tariffs will not go up in 2015–16
by 7.5 per cent but by 5.8 per cent, and that next year they will not go up by
16 per cent but by four per cent. It forecasts that over the next three years,
they will go up by an average of 2.75 per cent or by the inflation rate. Let us
be clear. Does the electricity cost for streetlights have a big impact on local
government? The member for Cannington says it does. We calculate that
electricity costs for all purposes, including streetlights, is about 1.5 per cent
of the City of Canning's budget; it will go up by five per cent. Over
the next week, members will see the City of Canning put up rates in double
digits, and it will try to blame us when it is actually its fault. Electricity
prices are not being —
Several members interjected.
Dr M.D. NAHAN : It
will be cost reflectivity, just like members opposite put into it, and
electricity prices for streetlights over the last four years have not increased
at all. The next time the member for Cannington stands under a streetlight, I
hope it is on and I hope he sees some clarity and honesty.
one. The member for Cannington has been standing under streetlights quite
often. Unfortunately, they are not shining light or accuracy onto his
statements. He was on the radio the other day with John McGlue. He basically
accused us, because in the budget we indicated that we were considering selling
or leasing some of the streetlights, of threatening to steal them. This is what
he said in the interview about me —
He's got this bizarre idea
about selling the light poles that are on streets that don't have
Western Power infrastructure attached to them.
In other words, he is saying that if
they are not owned by Western Power, we are going to sell them anyway. We will
not do that; members opposite might do that, but we will not. He then accused
us of refusing to sell them to local governments. I made it quite clear in this
house that if we put the poles on the market and local government wants to buy
some, if they make the highest bid, they will get them. The member then said on
the radio that it is a very strange and stupid idea because super funds do not
want to buy them. I can tell the member for Cannington that the super funds
that members of his former union put their money into have come to me and asked
to buy them. The member said that it is a dumb idea because Western Power might
not be able to maintain them, the super funds might own them, and the local
government might use them and pay for electricity. Yes. If � that is the case, the member says it is a dumb
idea. I can assure members that if someone buys the poles and Western Power
maintains them, it will charge the buyer the maintenance fee.
However, let us get onto
streetlights. The member for Cannington made a statement on how changes to
streetlight charges will jack up rates. Let me go through what we have done.
Yes, it is true that in 2011–12 we increased streetlight charges
significantly by 30 per cent. That was done because we inherited a mess from
members opposite. We inherited dysfunctional electricity from two sides.
Several members interjected.
The
SPEAKER : Order, members!
Dr
M.D. NAHAN : First, the previous government made a commitment to charge cost
reflectivity for streetlights. When we came into government in 2008, the former
government had made a commitment to raise prices by 70 per cent. We increased
prices significantly and we did pass that onto streetlights. However, do
members know what happened in the subsequent three years—2012–13,
2013–14 and 2014–15? The member for Cannington says that the streetlight
tariff went up by 11.8 per cent; however, it actually went down by five per cent.
I know a lot of local governments, spurred on by the member for Cannington,
have used the increase in streetlight tariffs as a justification for rate
increases—well, that is fiction. In this budget, we committed to having
cost-reflective streetlights. The budget did say 7.5 per cent in 2015–16
and 16 per cent in 2016–2017, but it also had a footnote—and it
is now the third year in a row that we have tricked these guys. The Economic
Regulation Authority has said in its report that tariffs will not go up in 2015–16
by 7.5 per cent but by 5.8 per cent, and that next year they will not go up by
16 per cent but by four per cent. It forecasts that over the next three years,
they will go up by an average of 2.75 per cent or by the inflation rate. Let us
be clear. Does the electricity cost for streetlights have a big impact on local
government? The member for Cannington says it does. We calculate that
electricity costs for all purposes, including streetlights, is about 1.5 per cent
of the City of Canning's budget; it will go up by five per cent. Over
the next week, members will see the City of Canning put up rates in double
digits, and it will try to blame us when it is actually its fault. Electricity
prices are not being —
Several members interjected.
Dr M.D. NAHAN : It
will be cost reflectivity, just like members opposite put into it, and
electricity prices for streetlights over the last four years have not increased
at all. The next time the member for Cannington stands under a streetlight, I
hope it is on and I hope he sees some clarity and honesty.
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