❓ Question regarding Western Power's statement of corporate intent for 2009-10. Minister denies directing the board and explains delays due to Treasurer's concurrence and ERA's decision, highlighting past inefficiencies.
AnsweredQoN 422Legislative Council
QuestionView source ↗
WESTERN POWER — STATEMENT OF CORPORATE INTENT
I refer to Western Power’s statement of corporate intent for 2009–10. (1) Has the minister directed the Western Power board to take specified steps or to make specified modifications to the draft statement? (2) On what date is the minister required by legislation to table the statement? (3) Will the minister table the statement by this date; and, if not, why not? Hon PETER COLLIER
I refer to Western Power’s statement of corporate intent for 2009–10. (1) Has the minister directed the Western Power board to take specified steps or to make specified modifications to the draft statement? (2) On what date is the minister required by legislation to table the statement? (3) Will the minister table the statement by this date; and, if not, why not? Hon PETER COLLIER
AnswerView source ↗
I thank the honourable member for some notice of the question. (1) No, but my office has asked Western Power to finalise the statement of corporate intent for 2009–10. Contrary to the honourable member’s media statement of 28 June 2010, the board of Western Power does not disagree with me regarding the content of this document. I could not give my agreement to the 2009–10 statement of corporate intent as the Treasurer was not in a position to provide his concurrence at the time. As the honourable member would be aware, the Economic Regulation Authority did not publish its further final decision on Western Power’s access agreement until 19 January 2010. The authority’s final determination needed to be considered during the 2010–11 budget process. As detailed on page 56 of budget paper No 3, additional capital expenditure may be required for Western Power to meet growth and undertake asset maintenance and replacement; however, this expenditure will be subject to government review and approval of business cases. The business case process is particularly important given that the authority determined that approximately $260 million of capital expenditure in the first access agreement period, primarily under the Labor government, was inefficient or reflected process deficiencies. As a result, Western Power could not earn a return on these assets. The Liberal–National government is implementing a robust process to ensure that the situation does not occur in the future. (2) There was no specific date. The legislation only requires a statement of corporate intent to be tabled within 14 days of agreement. (3) Not applicable.
(1) Has the minister directed the Western Power board to take specified steps or to make specified modifications to the draft statement? (2) On what date is the minister required by legislation to table the statement? (3) Will the minister table the statement by this date; and, if not, why not? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) No, but my office has asked Western Power to finalise the statement of corporate intent for 2009–10. Contrary to the honourable member’s media statement of 28 June 2010, the board of Western Power does not disagree with me regarding the content of this document. I could not give my agreement to the 2009–10 statement of corporate intent as the Treasurer was not in a position to provide his concurrence at the time. As the honourable member would be aware, the Economic Regulation Authority did not publish its further final decision on Western Power’s access agreement until 19 January 2010. The authority’s final determination needed to be considered during the 2010–11 budget process. As detailed on page 56 of budget paper No 3, additional capital expenditure may be required for Western Power to meet growth and undertake asset maintenance and replacement; however, this expenditure will be subject to government review and approval of business cases. The business case process is particularly important given that the authority determined that approximately $260 million of capital expenditure in the first access agreement period, primarily under the Labor government, was inefficient or reflected process deficiencies. As a result, Western Power could not earn a return on these assets. The Liberal–National government is implementing a robust process to ensure that the situation does not occur in the future. (2) There was no specific date. The legislation only requires a statement of corporate intent to be tabled within 14 days of agreement. (3) Not applicable.
(2) On what date is the minister required by legislation to table the statement? (3) Will the minister table the statement by this date; and, if not, why not? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) No, but my office has asked Western Power to finalise the statement of corporate intent for 2009–10. Contrary to the honourable member’s media statement of 28 June 2010, the board of Western Power does not disagree with me regarding the content of this document. I could not give my agreement to the 2009–10 statement of corporate intent as the Treasurer was not in a position to provide his concurrence at the time. As the honourable member would be aware, the Economic Regulation Authority did not publish its further final decision on Western Power’s access agreement until 19 January 2010. The authority’s final determination needed to be considered during the 2010–11 budget process. As detailed on page 56 of budget paper No 3, additional capital expenditure may be required for Western Power to meet growth and undertake asset maintenance and replacement; however, this expenditure will be subject to government review and approval of business cases. The business case process is particularly important given that the authority determined that approximately $260 million of capital expenditure in the first access agreement period, primarily under the Labor government, was inefficient or reflected process deficiencies. As a result, Western Power could not earn a return on these assets. The Liberal–National government is implementing a robust process to ensure that the situation does not occur in the future. (2) There was no specific date. The legislation only requires a statement of corporate intent to be tabled within 14 days of agreement. (3) Not applicable.
(3) Will the minister table the statement by this date; and, if not, why not? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) No, but my office has asked Western Power to finalise the statement of corporate intent for 2009–10. Contrary to the honourable member’s media statement of 28 June 2010, the board of Western Power does not disagree with me regarding the content of this document. I could not give my agreement to the 2009–10 statement of corporate intent as the Treasurer was not in a position to provide his concurrence at the time. As the honourable member would be aware, the Economic Regulation Authority did not publish its further final decision on Western Power’s access agreement until 19 January 2010. The authority’s final determination needed to be considered during the 2010–11 budget process. As detailed on page 56 of budget paper No 3, additional capital expenditure may be required for Western Power to meet growth and undertake asset maintenance and replacement; however, this expenditure will be subject to government review and approval of business cases. The business case process is particularly important given that the authority determined that approximately $260 million of capital expenditure in the first access agreement period, primarily under the Labor government, was inefficient or reflected process deficiencies. As a result, Western Power could not earn a return on these assets. The Liberal–National government is implementing a robust process to ensure that the situation does not occur in the future. (2) There was no specific date. The legislation only requires a statement of corporate intent to be tabled within 14 days of agreement. (3) Not applicable.
Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) No, but my office has asked Western Power to finalise the statement of corporate intent for 2009–10. Contrary to the honourable member’s media statement of 28 June 2010, the board of Western Power does not disagree with me regarding the content of this document. I could not give my agreement to the 2009–10 statement of corporate intent as the Treasurer was not in a position to provide his concurrence at the time. As the honourable member would be aware, the Economic Regulation Authority did not publish its further final decision on Western Power’s access agreement until 19 January 2010. The authority’s final determination needed to be considered during the 2010–11 budget process. As detailed on page 56 of budget paper No 3, additional capital expenditure may be required for Western Power to meet growth and undertake asset maintenance and replacement; however, this expenditure will be subject to government review and approval of business cases. The business case process is particularly important given that the authority determined that approximately $260 million of capital expenditure in the first access agreement period, primarily under the Labor government, was inefficient or reflected process deficiencies. As a result, Western Power could not earn a return on these assets. The Liberal–National government is implementing a robust process to ensure that the situation does not occur in the future. (2) There was no specific date. The legislation only requires a statement of corporate intent to be tabled within 14 days of agreement. (3) Not applicable.
I thank the honourable member for some notice of the question. (1) No, but my office has asked Western Power to finalise the statement of corporate intent for 2009–10. Contrary to the honourable member’s media statement of 28 June 2010, the board of Western Power does not disagree with me regarding the content of this document. I could not give my agreement to the 2009–10 statement of corporate intent as the Treasurer was not in a position to provide his concurrence at the time. As the honourable member would be aware, the Economic Regulation Authority did not publish its further final decision on Western Power’s access agreement until 19 January 2010. The authority’s final determination needed to be considered during the 2010–11 budget process. As detailed on page 56 of budget paper No 3, additional capital expenditure may be required for Western Power to meet growth and undertake asset maintenance and replacement; however, this expenditure will be subject to government review and approval of business cases. The business case process is particularly important given that the authority determined that approximately $260 million of capital expenditure in the first access agreement period, primarily under the Labor government, was inefficient or reflected process deficiencies. As a result, Western Power could not earn a return on these assets. The Liberal–National government is implementing a robust process to ensure that the situation does not occur in the future. (2) There was no specific date. The legislation only requires a statement of corporate intent to be tabled within 14 days of agreement. (3) Not applicable.
(1) No, but my office has asked Western Power to finalise the statement of corporate intent for 2009–10. Contrary to the honourable member’s media statement of 28 June 2010, the board of Western Power does not disagree with me regarding the content of this document. I could not give my agreement to the 2009–10 statement of corporate intent as the Treasurer was not in a position to provide his concurrence at the time. As the honourable member would be aware, the Economic Regulation Authority did not publish its further final decision on Western Power’s access agreement until 19 January 2010. The authority’s final determination needed to be considered during the 2010–11 budget process. As detailed on page 56 of budget paper No 3, additional capital expenditure may be required for Western Power to meet growth and undertake asset maintenance and replacement; however, this expenditure will be subject to government review and approval of business cases. The business case process is particularly important given that the authority determined that approximately $260 million of capital expenditure in the first access agreement period, primarily under the Labor government, was inefficient or reflected process deficiencies. As a result, Western Power could not earn a return on these assets. The Liberal–National government is implementing a robust process to ensure that the situation does not occur in the future. (2) There was no specific date. The legislation only requires a statement of corporate intent to be tabled within 14 days of agreement. (3) Not applicable.
(3) Not applicable.
(1) Has the minister directed the Western Power board to take specified steps or to make specified modifications to the draft statement? (2) On what date is the minister required by legislation to table the statement? (3) Will the minister table the statement by this date; and, if not, why not? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) No, but my office has asked Western Power to finalise the statement of corporate intent for 2009–10. Contrary to the honourable member’s media statement of 28 June 2010, the board of Western Power does not disagree with me regarding the content of this document. I could not give my agreement to the 2009–10 statement of corporate intent as the Treasurer was not in a position to provide his concurrence at the time. As the honourable member would be aware, the Economic Regulation Authority did not publish its further final decision on Western Power’s access agreement until 19 January 2010. The authority’s final determination needed to be considered during the 2010–11 budget process. As detailed on page 56 of budget paper No 3, additional capital expenditure may be required for Western Power to meet growth and undertake asset maintenance and replacement; however, this expenditure will be subject to government review and approval of business cases. The business case process is particularly important given that the authority determined that approximately $260 million of capital expenditure in the first access agreement period, primarily under the Labor government, was inefficient or reflected process deficiencies. As a result, Western Power could not earn a return on these assets. The Liberal–National government is implementing a robust process to ensure that the situation does not occur in the future. (2) There was no specific date. The legislation only requires a statement of corporate intent to be tabled within 14 days of agreement. (3) Not applicable.
(2) On what date is the minister required by legislation to table the statement? (3) Will the minister table the statement by this date; and, if not, why not? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) No, but my office has asked Western Power to finalise the statement of corporate intent for 2009–10. Contrary to the honourable member’s media statement of 28 June 2010, the board of Western Power does not disagree with me regarding the content of this document. I could not give my agreement to the 2009–10 statement of corporate intent as the Treasurer was not in a position to provide his concurrence at the time. As the honourable member would be aware, the Economic Regulation Authority did not publish its further final decision on Western Power’s access agreement until 19 January 2010. The authority’s final determination needed to be considered during the 2010–11 budget process. As detailed on page 56 of budget paper No 3, additional capital expenditure may be required for Western Power to meet growth and undertake asset maintenance and replacement; however, this expenditure will be subject to government review and approval of business cases. The business case process is particularly important given that the authority determined that approximately $260 million of capital expenditure in the first access agreement period, primarily under the Labor government, was inefficient or reflected process deficiencies. As a result, Western Power could not earn a return on these assets. The Liberal–National government is implementing a robust process to ensure that the situation does not occur in the future. (2) There was no specific date. The legislation only requires a statement of corporate intent to be tabled within 14 days of agreement. (3) Not applicable.
(3) Will the minister table the statement by this date; and, if not, why not? Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) No, but my office has asked Western Power to finalise the statement of corporate intent for 2009–10. Contrary to the honourable member’s media statement of 28 June 2010, the board of Western Power does not disagree with me regarding the content of this document. I could not give my agreement to the 2009–10 statement of corporate intent as the Treasurer was not in a position to provide his concurrence at the time. As the honourable member would be aware, the Economic Regulation Authority did not publish its further final decision on Western Power’s access agreement until 19 January 2010. The authority’s final determination needed to be considered during the 2010–11 budget process. As detailed on page 56 of budget paper No 3, additional capital expenditure may be required for Western Power to meet growth and undertake asset maintenance and replacement; however, this expenditure will be subject to government review and approval of business cases. The business case process is particularly important given that the authority determined that approximately $260 million of capital expenditure in the first access agreement period, primarily under the Labor government, was inefficient or reflected process deficiencies. As a result, Western Power could not earn a return on these assets. The Liberal–National government is implementing a robust process to ensure that the situation does not occur in the future. (2) There was no specific date. The legislation only requires a statement of corporate intent to be tabled within 14 days of agreement. (3) Not applicable.
Hon PETER COLLIER replied: I thank the honourable member for some notice of the question. (1) No, but my office has asked Western Power to finalise the statement of corporate intent for 2009–10. Contrary to the honourable member’s media statement of 28 June 2010, the board of Western Power does not disagree with me regarding the content of this document. I could not give my agreement to the 2009–10 statement of corporate intent as the Treasurer was not in a position to provide his concurrence at the time. As the honourable member would be aware, the Economic Regulation Authority did not publish its further final decision on Western Power’s access agreement until 19 January 2010. The authority’s final determination needed to be considered during the 2010–11 budget process. As detailed on page 56 of budget paper No 3, additional capital expenditure may be required for Western Power to meet growth and undertake asset maintenance and replacement; however, this expenditure will be subject to government review and approval of business cases. The business case process is particularly important given that the authority determined that approximately $260 million of capital expenditure in the first access agreement period, primarily under the Labor government, was inefficient or reflected process deficiencies. As a result, Western Power could not earn a return on these assets. The Liberal–National government is implementing a robust process to ensure that the situation does not occur in the future. (2) There was no specific date. The legislation only requires a statement of corporate intent to be tabled within 14 days of agreement. (3) Not applicable.
I thank the honourable member for some notice of the question. (1) No, but my office has asked Western Power to finalise the statement of corporate intent for 2009–10. Contrary to the honourable member’s media statement of 28 June 2010, the board of Western Power does not disagree with me regarding the content of this document. I could not give my agreement to the 2009–10 statement of corporate intent as the Treasurer was not in a position to provide his concurrence at the time. As the honourable member would be aware, the Economic Regulation Authority did not publish its further final decision on Western Power’s access agreement until 19 January 2010. The authority’s final determination needed to be considered during the 2010–11 budget process. As detailed on page 56 of budget paper No 3, additional capital expenditure may be required for Western Power to meet growth and undertake asset maintenance and replacement; however, this expenditure will be subject to government review and approval of business cases. The business case process is particularly important given that the authority determined that approximately $260 million of capital expenditure in the first access agreement period, primarily under the Labor government, was inefficient or reflected process deficiencies. As a result, Western Power could not earn a return on these assets. The Liberal–National government is implementing a robust process to ensure that the situation does not occur in the future. (2) There was no specific date. The legislation only requires a statement of corporate intent to be tabled within 14 days of agreement. (3) Not applicable.
(1) No, but my office has asked Western Power to finalise the statement of corporate intent for 2009–10. Contrary to the honourable member’s media statement of 28 June 2010, the board of Western Power does not disagree with me regarding the content of this document. I could not give my agreement to the 2009–10 statement of corporate intent as the Treasurer was not in a position to provide his concurrence at the time. As the honourable member would be aware, the Economic Regulation Authority did not publish its further final decision on Western Power’s access agreement until 19 January 2010. The authority’s final determination needed to be considered during the 2010–11 budget process. As detailed on page 56 of budget paper No 3, additional capital expenditure may be required for Western Power to meet growth and undertake asset maintenance and replacement; however, this expenditure will be subject to government review and approval of business cases. The business case process is particularly important given that the authority determined that approximately $260 million of capital expenditure in the first access agreement period, primarily under the Labor government, was inefficient or reflected process deficiencies. As a result, Western Power could not earn a return on these assets. The Liberal–National government is implementing a robust process to ensure that the situation does not occur in the future. (2) There was no specific date. The legislation only requires a statement of corporate intent to be tabled within 14 days of agreement. (3) Not applicable.
(3) Not applicable.
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