Opposition Leader Norman Moore questions the Energy Minister Kim Chance about a proposed $780 million electricity subsidy, seeking documented evidence for its necessity and allocation. The Minister declines to table the documents, citing budget process confidentiality, but confirms their existence.

AnsweredQoN 315Legislative Council
Asked
8 April 2008
Portfolio
Energy

QuestionView source ↗

ELECTRICITY — RETAIL PRICE INCREASE
I refer the Minister for Energy to Labor’s plan for 10 per cent annual retail electricity price rises after the next election and a $780 million subsidy. (1) Will the minister table any documented evidence of the need for such a subsidy that explains how the $780 million figure was derived and some detail as to how the money will be spent? (2) If the minister will not table any such document, will he assure the house that such evidence does exist in documented form? Hon KIM CHANCE

AnswerView source ↗

I thank the honourable Leader of the Opposition for providing some notice of the question. (1) No. The documents are related to the government’s budget process. The estimated community service obligation payment of $780 million will simply fund the difference between the cost-reflective tariffs, which have been independently determined, and the glide path for tariff increases that will be implemented by the government to reduce the impact of price increases on small business and residential—non-contestable—customers. (2) The calculations used to forecast the community service obligation payment exist in a documented form.
(1) Will the minister table any documented evidence of the need for such a subsidy that explains how the $780 million figure was derived and some detail as to how the money will be spent? (2) If the minister will not table any such document, will he assure the house that such evidence does exist in documented form? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing some notice of the question. (1) No. The documents are related to the government’s budget process. The estimated community service obligation payment of $780 million will simply fund the difference between the cost-reflective tariffs, which have been independently determined, and the glide path for tariff increases that will be implemented by the government to reduce the impact of price increases on small business and residential—non-contestable—customers. (2) The calculations used to forecast the community service obligation payment exist in a documented form.
(2) If the minister will not table any such document, will he assure the house that such evidence does exist in documented form? Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing some notice of the question. (1) No. The documents are related to the government’s budget process. The estimated community service obligation payment of $780 million will simply fund the difference between the cost-reflective tariffs, which have been independently determined, and the glide path for tariff increases that will be implemented by the government to reduce the impact of price increases on small business and residential—non-contestable—customers. (2) The calculations used to forecast the community service obligation payment exist in a documented form.
Hon KIM CHANCE replied: I thank the honourable Leader of the Opposition for providing some notice of the question. (1) No. The documents are related to the government’s budget process. The estimated community service obligation payment of $780 million will simply fund the difference between the cost-reflective tariffs, which have been independently determined, and the glide path for tariff increases that will be implemented by the government to reduce the impact of price increases on small business and residential—non-contestable—customers. (2) The calculations used to forecast the community service obligation payment exist in a documented form.
I thank the honourable Leader of the Opposition for providing some notice of the question. (1) No. The documents are related to the government’s budget process. The estimated community service obligation payment of $780 million will simply fund the difference between the cost-reflective tariffs, which have been independently determined, and the glide path for tariff increases that will be implemented by the government to reduce the impact of price increases on small business and residential—non-contestable—customers. (2) The calculations used to forecast the community service obligation payment exist in a documented form.
(1) No. The documents are related to the government’s budget process. The estimated community service obligation payment of $780 million will simply fund the difference between the cost-reflective tariffs, which have been independently determined, and the glide path for tariff increases that will be implemented by the government to reduce the impact of price increases on small business and residential—non-contestable—customers. (2) The calculations used to forecast the community service obligation payment exist in a documented form.
(2) The calculations used to forecast the community service obligation payment exist in a documented form.

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