❓ Mr. Redman questions the Energy Minister on the impact of the user-pays policy for power upgrades on regional development in Denmark and Walpole, citing power blackouts. The Minister defends the policy changes and accuses Mr. Redman of inciting concerns despite planned upgrades.
AnsweredQoN 217Legislative Assembly
QuestionView source ↗
POWER BLACKOUTS - DENMARK AND WALPOLE
Given the continuing power blackouts in Denmark and Walpole, particularly over the Easter break, and, more recently, while the Treasurer was delivering his budget speech last week, and the clear capacity issues that many regional towns are facing, I ask - (1) Does the minister concede that the current user-pays policy for edge-of-grid capacity upgrades is a disincentive to regional development? (2) Does the minister concede that this policy has contributed to reliability problems in regional areas? (3) Does the minister concede that this policy will contribute to an increase in housing costs for affected regional areas? (4) If not, why not? Mr F.M. LOGAN
Given the continuing power blackouts in Denmark and Walpole, particularly over the Easter break, and, more recently, while the Treasurer was delivering his budget speech last week, and the clear capacity issues that many regional towns are facing, I ask - (1) Does the minister concede that the current user-pays policy for edge-of-grid capacity upgrades is a disincentive to regional development? (2) Does the minister concede that this policy has contributed to reliability problems in regional areas? (3) Does the minister concede that this policy will contribute to an increase in housing costs for affected regional areas? (4) If not, why not? Mr F.M. LOGAN
AnswerView source ↗
(1)-(4) I thank the member for the question. It is interesting, because it relates to the current policy. As the member well knows, the current policy applies to uneconomic network upgrades in regional Western Australia. That means that when the network reaches capacity, the developer who makes the first development application at the point of capacity is required to make the full capital headworks contribution for that upgrade. That is the way it applies at the moment. The member is suggesting that that process should be changed. As the member is well aware, we are changing that process so that the cost will be spread equally over all the future users of that network upgrade. That means that the developers will actually be required to pay less overall for the connections that they need for the developments that they are proposing. However, that does not appear to be satisfactory for some developers. They would like to pay nothing at all! They would like the state to pay for the networks upgrades in their area - despite the fact that that might be an uneconomic contribution to that area - and receive those upgrades free of charge! As the member would also be well aware, and as I have told the Shire of Denmark, we are proposing to change the capital contribution charge so that it will become more like a headworks charge. That will mean that the developers will ultimately pay less. The developers do not pay that cost themselves. They pass it on to the purchasers of the blocks. Unfortunately, despite the fact that we are reducing the cost of network upgrades and the cost of connections in order to encourage development to take place in regional Western Australia, the developers are still whingeing and complaining! What annoys me most about this matter is the campaign that is being led by the member. The member is winding up people in Denmark and Walpole even though he knows there is likely to be a $14 million upgrade to the network between Albany and Walpole. This is the same member who said to me, “Please do something about this, Minister for Energy! Please help us out. Please help the developers out. Do us a favour!” In response to the member’s request, we have immediately taken $2 million out of the budget of Western Power to upgrade the network to Walpole to meet the development applications that have been made. What was the member’s response? The member said, “Thanks very much for that,” and he then went to Denmark and wound everyone up! The member is now saying, “How about doing it right now? Thanks for the $2 million, but we want it done before Christmas.” As the member for Stirling well knows, the problems in Walpole and Denmark are being addressed. The issues relating to the development applications and their capacity are being addressed as fast as Western Power can possibly do so, given the pressure it is under from huge demand, which has resulted from the economic development of this state. It would be helpful if the member for Stirling desisted from winding up people in Denmark, because they will get the power upgrade they deserve at a time that is acceptable to Western Power’s upgrade plan.
(1) Does the minister concede that the current user-pays policy for edge-of-grid capacity upgrades is a disincentive to regional development? (2) Does the minister concede that this policy has contributed to reliability problems in regional areas? (3) Does the minister concede that this policy will contribute to an increase in housing costs for affected regional areas? (4) If not, why not? Mr F.M. LOGAN replied: (1)-(4) I thank the member for the question. It is interesting, because it relates to the current policy. As the member well knows, the current policy applies to uneconomic network upgrades in regional Western Australia. That means that when the network reaches capacity, the developer who makes the first development application at the point of capacity is required to make the full capital headworks contribution for that upgrade. That is the way it applies at the moment. The member is suggesting that that process should be changed. As the member is well aware, we are changing that process so that the cost will be spread equally over all the future users of that network upgrade. That means that the developers will actually be required to pay less overall for the connections that they need for the developments that they are proposing. However, that does not appear to be satisfactory for some developers. They would like to pay nothing at all! They would like the state to pay for the networks upgrades in their area - despite the fact that that might be an uneconomic contribution to that area - and receive those upgrades free of charge! As the member would also be well aware, and as I have told the Shire of Denmark, we are proposing to change the capital contribution charge so that it will become more like a headworks charge. That will mean that the developers will ultimately pay less. The developers do not pay that cost themselves. They pass it on to the purchasers of the blocks. Unfortunately, despite the fact that we are reducing the cost of network upgrades and the cost of connections in order to encourage development to take place in regional Western Australia, the developers are still whingeing and complaining! What annoys me most about this matter is the campaign that is being led by the member. The member is winding up people in Denmark and Walpole even though he knows there is likely to be a $14 million upgrade to the network between Albany and Walpole. This is the same member who said to me, “Please do something about this, Minister for Energy! Please help us out. Please help the developers out. Do us a favour!” In response to the member’s request, we have immediately taken $2 million out of the budget of Western Power to upgrade the network to Walpole to meet the development applications that have been made. What was the member’s response? The member said, “Thanks very much for that,” and he then went to Denmark and wound everyone up! The member is now saying, “How about doing it right now? Thanks for the $2 million, but we want it done before Christmas.” As the member for Stirling well knows, the problems in Walpole and Denmark are being addressed. The issues relating to the development applications and their capacity are being addressed as fast as Western Power can possibly do so, given the pressure it is under from huge demand, which has resulted from the economic development of this state. It would be helpful if the member for Stirling desisted from winding up people in Denmark, because they will get the power upgrade they deserve at a time that is acceptable to Western Power’s upgrade plan.
(2) Does the minister concede that this policy has contributed to reliability problems in regional areas? (3) Does the minister concede that this policy will contribute to an increase in housing costs for affected regional areas? (4) If not, why not? Mr F.M. LOGAN replied: (1)-(4) I thank the member for the question. It is interesting, because it relates to the current policy. As the member well knows, the current policy applies to uneconomic network upgrades in regional Western Australia. That means that when the network reaches capacity, the developer who makes the first development application at the point of capacity is required to make the full capital headworks contribution for that upgrade. That is the way it applies at the moment. The member is suggesting that that process should be changed. As the member is well aware, we are changing that process so that the cost will be spread equally over all the future users of that network upgrade. That means that the developers will actually be required to pay less overall for the connections that they need for the developments that they are proposing. However, that does not appear to be satisfactory for some developers. They would like to pay nothing at all! They would like the state to pay for the networks upgrades in their area - despite the fact that that might be an uneconomic contribution to that area - and receive those upgrades free of charge! As the member would also be well aware, and as I have told the Shire of Denmark, we are proposing to change the capital contribution charge so that it will become more like a headworks charge. That will mean that the developers will ultimately pay less. The developers do not pay that cost themselves. They pass it on to the purchasers of the blocks. Unfortunately, despite the fact that we are reducing the cost of network upgrades and the cost of connections in order to encourage development to take place in regional Western Australia, the developers are still whingeing and complaining! What annoys me most about this matter is the campaign that is being led by the member. The member is winding up people in Denmark and Walpole even though he knows there is likely to be a $14 million upgrade to the network between Albany and Walpole. This is the same member who said to me, “Please do something about this, Minister for Energy! Please help us out. Please help the developers out. Do us a favour!” In response to the member’s request, we have immediately taken $2 million out of the budget of Western Power to upgrade the network to Walpole to meet the development applications that have been made. What was the member’s response? The member said, “Thanks very much for that,” and he then went to Denmark and wound everyone up! The member is now saying, “How about doing it right now? Thanks for the $2 million, but we want it done before Christmas.” As the member for Stirling well knows, the problems in Walpole and Denmark are being addressed. The issues relating to the development applications and their capacity are being addressed as fast as Western Power can possibly do so, given the pressure it is under from huge demand, which has resulted from the economic development of this state. It would be helpful if the member for Stirling desisted from winding up people in Denmark, because they will get the power upgrade they deserve at a time that is acceptable to Western Power’s upgrade plan.
(3) Does the minister concede that this policy will contribute to an increase in housing costs for affected regional areas? (4) If not, why not? Mr F.M. LOGAN replied: (1)-(4) I thank the member for the question. It is interesting, because it relates to the current policy. As the member well knows, the current policy applies to uneconomic network upgrades in regional Western Australia. That means that when the network reaches capacity, the developer who makes the first development application at the point of capacity is required to make the full capital headworks contribution for that upgrade. That is the way it applies at the moment. The member is suggesting that that process should be changed. As the member is well aware, we are changing that process so that the cost will be spread equally over all the future users of that network upgrade. That means that the developers will actually be required to pay less overall for the connections that they need for the developments that they are proposing. However, that does not appear to be satisfactory for some developers. They would like to pay nothing at all! They would like the state to pay for the networks upgrades in their area - despite the fact that that might be an uneconomic contribution to that area - and receive those upgrades free of charge! As the member would also be well aware, and as I have told the Shire of Denmark, we are proposing to change the capital contribution charge so that it will become more like a headworks charge. That will mean that the developers will ultimately pay less. The developers do not pay that cost themselves. They pass it on to the purchasers of the blocks. Unfortunately, despite the fact that we are reducing the cost of network upgrades and the cost of connections in order to encourage development to take place in regional Western Australia, the developers are still whingeing and complaining! What annoys me most about this matter is the campaign that is being led by the member. The member is winding up people in Denmark and Walpole even though he knows there is likely to be a $14 million upgrade to the network between Albany and Walpole. This is the same member who said to me, “Please do something about this, Minister for Energy! Please help us out. Please help the developers out. Do us a favour!” In response to the member’s request, we have immediately taken $2 million out of the budget of Western Power to upgrade the network to Walpole to meet the development applications that have been made. What was the member’s response? The member said, “Thanks very much for that,” and he then went to Denmark and wound everyone up! The member is now saying, “How about doing it right now? Thanks for the $2 million, but we want it done before Christmas.” As the member for Stirling well knows, the problems in Walpole and Denmark are being addressed. The issues relating to the development applications and their capacity are being addressed as fast as Western Power can possibly do so, given the pressure it is under from huge demand, which has resulted from the economic development of this state. It would be helpful if the member for Stirling desisted from winding up people in Denmark, because they will get the power upgrade they deserve at a time that is acceptable to Western Power’s upgrade plan.
(4) If not, why not? Mr F.M. LOGAN replied: (1)-(4) I thank the member for the question. It is interesting, because it relates to the current policy. As the member well knows, the current policy applies to uneconomic network upgrades in regional Western Australia. That means that when the network reaches capacity, the developer who makes the first development application at the point of capacity is required to make the full capital headworks contribution for that upgrade. That is the way it applies at the moment. The member is suggesting that that process should be changed. As the member is well aware, we are changing that process so that the cost will be spread equally over all the future users of that network upgrade. That means that the developers will actually be required to pay less overall for the connections that they need for the developments that they are proposing. However, that does not appear to be satisfactory for some developers. They would like to pay nothing at all! They would like the state to pay for the networks upgrades in their area - despite the fact that that might be an uneconomic contribution to that area - and receive those upgrades free of charge! As the member would also be well aware, and as I have told the Shire of Denmark, we are proposing to change the capital contribution charge so that it will become more like a headworks charge. That will mean that the developers will ultimately pay less. The developers do not pay that cost themselves. They pass it on to the purchasers of the blocks. Unfortunately, despite the fact that we are reducing the cost of network upgrades and the cost of connections in order to encourage development to take place in regional Western Australia, the developers are still whingeing and complaining! What annoys me most about this matter is the campaign that is being led by the member. The member is winding up people in Denmark and Walpole even though he knows there is likely to be a $14 million upgrade to the network between Albany and Walpole. This is the same member who said to me, “Please do something about this, Minister for Energy! Please help us out. Please help the developers out. Do us a favour!” In response to the member’s request, we have immediately taken $2 million out of the budget of Western Power to upgrade the network to Walpole to meet the development applications that have been made. What was the member’s response? The member said, “Thanks very much for that,” and he then went to Denmark and wound everyone up! The member is now saying, “How about doing it right now? Thanks for the $2 million, but we want it done before Christmas.” As the member for Stirling well knows, the problems in Walpole and Denmark are being addressed. The issues relating to the development applications and their capacity are being addressed as fast as Western Power can possibly do so, given the pressure it is under from huge demand, which has resulted from the economic development of this state. It would be helpful if the member for Stirling desisted from winding up people in Denmark, because they will get the power upgrade they deserve at a time that is acceptable to Western Power’s upgrade plan.
Mr F.M. LOGAN replied: (1)-(4) I thank the member for the question. It is interesting, because it relates to the current policy. As the member well knows, the current policy applies to uneconomic network upgrades in regional Western Australia. That means that when the network reaches capacity, the developer who makes the first development application at the point of capacity is required to make the full capital headworks contribution for that upgrade. That is the way it applies at the moment. The member is suggesting that that process should be changed. As the member is well aware, we are changing that process so that the cost will be spread equally over all the future users of that network upgrade. That means that the developers will actually be required to pay less overall for the connections that they need for the developments that they are proposing. However, that does not appear to be satisfactory for some developers. They would like to pay nothing at all! They would like the state to pay for the networks upgrades in their area - despite the fact that that might be an uneconomic contribution to that area - and receive those upgrades free of charge! As the member would also be well aware, and as I have told the Shire of Denmark, we are proposing to change the capital contribution charge so that it will become more like a headworks charge. That will mean that the developers will ultimately pay less. The developers do not pay that cost themselves. They pass it on to the purchasers of the blocks. Unfortunately, despite the fact that we are reducing the cost of network upgrades and the cost of connections in order to encourage development to take place in regional Western Australia, the developers are still whingeing and complaining! What annoys me most about this matter is the campaign that is being led by the member. The member is winding up people in Denmark and Walpole even though he knows there is likely to be a $14 million upgrade to the network between Albany and Walpole. This is the same member who said to me, “Please do something about this, Minister for Energy! Please help us out. Please help the developers out. Do us a favour!” In response to the member’s request, we have immediately taken $2 million out of the budget of Western Power to upgrade the network to Walpole to meet the development applications that have been made. What was the member’s response? The member said, “Thanks very much for that,” and he then went to Denmark and wound everyone up! The member is now saying, “How about doing it right now? Thanks for the $2 million, but we want it done before Christmas.” As the member for Stirling well knows, the problems in Walpole and Denmark are being addressed. The issues relating to the development applications and their capacity are being addressed as fast as Western Power can possibly do so, given the pressure it is under from huge demand, which has resulted from the economic development of this state. It would be helpful if the member for Stirling desisted from winding up people in Denmark, because they will get the power upgrade they deserve at a time that is acceptable to Western Power’s upgrade plan.
(1)-(4) I thank the member for the question. It is interesting, because it relates to the current policy. As the member well knows, the current policy applies to uneconomic network upgrades in regional Western Australia. That means that when the network reaches capacity, the developer who makes the first development application at the point of capacity is required to make the full capital headworks contribution for that upgrade. That is the way it applies at the moment. The member is suggesting that that process should be changed. As the member is well aware, we are changing that process so that the cost will be spread equally over all the future users of that network upgrade. That means that the developers will actually be required to pay less overall for the connections that they need for the developments that they are proposing. However, that does not appear to be satisfactory for some developers. They would like to pay nothing at all! They would like the state to pay for the networks upgrades in their area - despite the fact that that might be an uneconomic contribution to that area - and receive those upgrades free of charge! As the member would also be well aware, and as I have told the Shire of Denmark, we are proposing to change the capital contribution charge so that it will become more like a headworks charge. That will mean that the developers will ultimately pay less. The developers do not pay that cost themselves. They pass it on to the purchasers of the blocks. Unfortunately, despite the fact that we are reducing the cost of network upgrades and the cost of connections in order to encourage development to take place in regional Western Australia, the developers are still whingeing and complaining! What annoys me most about this matter is the campaign that is being led by the member. The member is winding up people in Denmark and Walpole even though he knows there is likely to be a $14 million upgrade to the network between Albany and Walpole. This is the same member who said to me, “Please do something about this, Minister for Energy! Please help us out. Please help the developers out. Do us a favour!” In response to the member’s request, we have immediately taken $2 million out of the budget of Western Power to upgrade the network to Walpole to meet the development applications that have been made. What was the member’s response? The member said, “Thanks very much for that,” and he then went to Denmark and wound everyone up! The member is now saying, “How about doing it right now? Thanks for the $2 million, but we want it done before Christmas.” As the member for Stirling well knows, the problems in Walpole and Denmark are being addressed. The issues relating to the development applications and their capacity are being addressed as fast as Western Power can possibly do so, given the pressure it is under from huge demand, which has resulted from the economic development of this state. It would be helpful if the member for Stirling desisted from winding up people in Denmark, because they will get the power upgrade they deserve at a time that is acceptable to Western Power’s upgrade plan.
(1) Does the minister concede that the current user-pays policy for edge-of-grid capacity upgrades is a disincentive to regional development? (2) Does the minister concede that this policy has contributed to reliability problems in regional areas? (3) Does the minister concede that this policy will contribute to an increase in housing costs for affected regional areas? (4) If not, why not? Mr F.M. LOGAN replied: (1)-(4) I thank the member for the question. It is interesting, because it relates to the current policy. As the member well knows, the current policy applies to uneconomic network upgrades in regional Western Australia. That means that when the network reaches capacity, the developer who makes the first development application at the point of capacity is required to make the full capital headworks contribution for that upgrade. That is the way it applies at the moment. The member is suggesting that that process should be changed. As the member is well aware, we are changing that process so that the cost will be spread equally over all the future users of that network upgrade. That means that the developers will actually be required to pay less overall for the connections that they need for the developments that they are proposing. However, that does not appear to be satisfactory for some developers. They would like to pay nothing at all! They would like the state to pay for the networks upgrades in their area - despite the fact that that might be an uneconomic contribution to that area - and receive those upgrades free of charge! As the member would also be well aware, and as I have told the Shire of Denmark, we are proposing to change the capital contribution charge so that it will become more like a headworks charge. That will mean that the developers will ultimately pay less. The developers do not pay that cost themselves. They pass it on to the purchasers of the blocks. Unfortunately, despite the fact that we are reducing the cost of network upgrades and the cost of connections in order to encourage development to take place in regional Western Australia, the developers are still whingeing and complaining! What annoys me most about this matter is the campaign that is being led by the member. The member is winding up people in Denmark and Walpole even though he knows there is likely to be a $14 million upgrade to the network between Albany and Walpole. This is the same member who said to me, “Please do something about this, Minister for Energy! Please help us out. Please help the developers out. Do us a favour!” In response to the member’s request, we have immediately taken $2 million out of the budget of Western Power to upgrade the network to Walpole to meet the development applications that have been made. What was the member’s response? The member said, “Thanks very much for that,” and he then went to Denmark and wound everyone up! The member is now saying, “How about doing it right now? Thanks for the $2 million, but we want it done before Christmas.” As the member for Stirling well knows, the problems in Walpole and Denmark are being addressed. The issues relating to the development applications and their capacity are being addressed as fast as Western Power can possibly do so, given the pressure it is under from huge demand, which has resulted from the economic development of this state. It would be helpful if the member for Stirling desisted from winding up people in Denmark, because they will get the power upgrade they deserve at a time that is acceptable to Western Power’s upgrade plan.
(2) Does the minister concede that this policy has contributed to reliability problems in regional areas? (3) Does the minister concede that this policy will contribute to an increase in housing costs for affected regional areas? (4) If not, why not? Mr F.M. LOGAN replied: (1)-(4) I thank the member for the question. It is interesting, because it relates to the current policy. As the member well knows, the current policy applies to uneconomic network upgrades in regional Western Australia. That means that when the network reaches capacity, the developer who makes the first development application at the point of capacity is required to make the full capital headworks contribution for that upgrade. That is the way it applies at the moment. The member is suggesting that that process should be changed. As the member is well aware, we are changing that process so that the cost will be spread equally over all the future users of that network upgrade. That means that the developers will actually be required to pay less overall for the connections that they need for the developments that they are proposing. However, that does not appear to be satisfactory for some developers. They would like to pay nothing at all! They would like the state to pay for the networks upgrades in their area - despite the fact that that might be an uneconomic contribution to that area - and receive those upgrades free of charge! As the member would also be well aware, and as I have told the Shire of Denmark, we are proposing to change the capital contribution charge so that it will become more like a headworks charge. That will mean that the developers will ultimately pay less. The developers do not pay that cost themselves. They pass it on to the purchasers of the blocks. Unfortunately, despite the fact that we are reducing the cost of network upgrades and the cost of connections in order to encourage development to take place in regional Western Australia, the developers are still whingeing and complaining! What annoys me most about this matter is the campaign that is being led by the member. The member is winding up people in Denmark and Walpole even though he knows there is likely to be a $14 million upgrade to the network between Albany and Walpole. This is the same member who said to me, “Please do something about this, Minister for Energy! Please help us out. Please help the developers out. Do us a favour!” In response to the member’s request, we have immediately taken $2 million out of the budget of Western Power to upgrade the network to Walpole to meet the development applications that have been made. What was the member’s response? The member said, “Thanks very much for that,” and he then went to Denmark and wound everyone up! The member is now saying, “How about doing it right now? Thanks for the $2 million, but we want it done before Christmas.” As the member for Stirling well knows, the problems in Walpole and Denmark are being addressed. The issues relating to the development applications and their capacity are being addressed as fast as Western Power can possibly do so, given the pressure it is under from huge demand, which has resulted from the economic development of this state. It would be helpful if the member for Stirling desisted from winding up people in Denmark, because they will get the power upgrade they deserve at a time that is acceptable to Western Power’s upgrade plan.
(3) Does the minister concede that this policy will contribute to an increase in housing costs for affected regional areas? (4) If not, why not? Mr F.M. LOGAN replied: (1)-(4) I thank the member for the question. It is interesting, because it relates to the current policy. As the member well knows, the current policy applies to uneconomic network upgrades in regional Western Australia. That means that when the network reaches capacity, the developer who makes the first development application at the point of capacity is required to make the full capital headworks contribution for that upgrade. That is the way it applies at the moment. The member is suggesting that that process should be changed. As the member is well aware, we are changing that process so that the cost will be spread equally over all the future users of that network upgrade. That means that the developers will actually be required to pay less overall for the connections that they need for the developments that they are proposing. However, that does not appear to be satisfactory for some developers. They would like to pay nothing at all! They would like the state to pay for the networks upgrades in their area - despite the fact that that might be an uneconomic contribution to that area - and receive those upgrades free of charge! As the member would also be well aware, and as I have told the Shire of Denmark, we are proposing to change the capital contribution charge so that it will become more like a headworks charge. That will mean that the developers will ultimately pay less. The developers do not pay that cost themselves. They pass it on to the purchasers of the blocks. Unfortunately, despite the fact that we are reducing the cost of network upgrades and the cost of connections in order to encourage development to take place in regional Western Australia, the developers are still whingeing and complaining! What annoys me most about this matter is the campaign that is being led by the member. The member is winding up people in Denmark and Walpole even though he knows there is likely to be a $14 million upgrade to the network between Albany and Walpole. This is the same member who said to me, “Please do something about this, Minister for Energy! Please help us out. Please help the developers out. Do us a favour!” In response to the member’s request, we have immediately taken $2 million out of the budget of Western Power to upgrade the network to Walpole to meet the development applications that have been made. What was the member’s response? The member said, “Thanks very much for that,” and he then went to Denmark and wound everyone up! The member is now saying, “How about doing it right now? Thanks for the $2 million, but we want it done before Christmas.” As the member for Stirling well knows, the problems in Walpole and Denmark are being addressed. The issues relating to the development applications and their capacity are being addressed as fast as Western Power can possibly do so, given the pressure it is under from huge demand, which has resulted from the economic development of this state. It would be helpful if the member for Stirling desisted from winding up people in Denmark, because they will get the power upgrade they deserve at a time that is acceptable to Western Power’s upgrade plan.
(4) If not, why not? Mr F.M. LOGAN replied: (1)-(4) I thank the member for the question. It is interesting, because it relates to the current policy. As the member well knows, the current policy applies to uneconomic network upgrades in regional Western Australia. That means that when the network reaches capacity, the developer who makes the first development application at the point of capacity is required to make the full capital headworks contribution for that upgrade. That is the way it applies at the moment. The member is suggesting that that process should be changed. As the member is well aware, we are changing that process so that the cost will be spread equally over all the future users of that network upgrade. That means that the developers will actually be required to pay less overall for the connections that they need for the developments that they are proposing. However, that does not appear to be satisfactory for some developers. They would like to pay nothing at all! They would like the state to pay for the networks upgrades in their area - despite the fact that that might be an uneconomic contribution to that area - and receive those upgrades free of charge! As the member would also be well aware, and as I have told the Shire of Denmark, we are proposing to change the capital contribution charge so that it will become more like a headworks charge. That will mean that the developers will ultimately pay less. The developers do not pay that cost themselves. They pass it on to the purchasers of the blocks. Unfortunately, despite the fact that we are reducing the cost of network upgrades and the cost of connections in order to encourage development to take place in regional Western Australia, the developers are still whingeing and complaining! What annoys me most about this matter is the campaign that is being led by the member. The member is winding up people in Denmark and Walpole even though he knows there is likely to be a $14 million upgrade to the network between Albany and Walpole. This is the same member who said to me, “Please do something about this, Minister for Energy! Please help us out. Please help the developers out. Do us a favour!” In response to the member’s request, we have immediately taken $2 million out of the budget of Western Power to upgrade the network to Walpole to meet the development applications that have been made. What was the member’s response? The member said, “Thanks very much for that,” and he then went to Denmark and wound everyone up! The member is now saying, “How about doing it right now? Thanks for the $2 million, but we want it done before Christmas.” As the member for Stirling well knows, the problems in Walpole and Denmark are being addressed. The issues relating to the development applications and their capacity are being addressed as fast as Western Power can possibly do so, given the pressure it is under from huge demand, which has resulted from the economic development of this state. It would be helpful if the member for Stirling desisted from winding up people in Denmark, because they will get the power upgrade they deserve at a time that is acceptable to Western Power’s upgrade plan.
Mr F.M. LOGAN replied: (1)-(4) I thank the member for the question. It is interesting, because it relates to the current policy. As the member well knows, the current policy applies to uneconomic network upgrades in regional Western Australia. That means that when the network reaches capacity, the developer who makes the first development application at the point of capacity is required to make the full capital headworks contribution for that upgrade. That is the way it applies at the moment. The member is suggesting that that process should be changed. As the member is well aware, we are changing that process so that the cost will be spread equally over all the future users of that network upgrade. That means that the developers will actually be required to pay less overall for the connections that they need for the developments that they are proposing. However, that does not appear to be satisfactory for some developers. They would like to pay nothing at all! They would like the state to pay for the networks upgrades in their area - despite the fact that that might be an uneconomic contribution to that area - and receive those upgrades free of charge! As the member would also be well aware, and as I have told the Shire of Denmark, we are proposing to change the capital contribution charge so that it will become more like a headworks charge. That will mean that the developers will ultimately pay less. The developers do not pay that cost themselves. They pass it on to the purchasers of the blocks. Unfortunately, despite the fact that we are reducing the cost of network upgrades and the cost of connections in order to encourage development to take place in regional Western Australia, the developers are still whingeing and complaining! What annoys me most about this matter is the campaign that is being led by the member. The member is winding up people in Denmark and Walpole even though he knows there is likely to be a $14 million upgrade to the network between Albany and Walpole. This is the same member who said to me, “Please do something about this, Minister for Energy! Please help us out. Please help the developers out. Do us a favour!” In response to the member’s request, we have immediately taken $2 million out of the budget of Western Power to upgrade the network to Walpole to meet the development applications that have been made. What was the member’s response? The member said, “Thanks very much for that,” and he then went to Denmark and wound everyone up! The member is now saying, “How about doing it right now? Thanks for the $2 million, but we want it done before Christmas.” As the member for Stirling well knows, the problems in Walpole and Denmark are being addressed. The issues relating to the development applications and their capacity are being addressed as fast as Western Power can possibly do so, given the pressure it is under from huge demand, which has resulted from the economic development of this state. It would be helpful if the member for Stirling desisted from winding up people in Denmark, because they will get the power upgrade they deserve at a time that is acceptable to Western Power’s upgrade plan.
(1)-(4) I thank the member for the question. It is interesting, because it relates to the current policy. As the member well knows, the current policy applies to uneconomic network upgrades in regional Western Australia. That means that when the network reaches capacity, the developer who makes the first development application at the point of capacity is required to make the full capital headworks contribution for that upgrade. That is the way it applies at the moment. The member is suggesting that that process should be changed. As the member is well aware, we are changing that process so that the cost will be spread equally over all the future users of that network upgrade. That means that the developers will actually be required to pay less overall for the connections that they need for the developments that they are proposing. However, that does not appear to be satisfactory for some developers. They would like to pay nothing at all! They would like the state to pay for the networks upgrades in their area - despite the fact that that might be an uneconomic contribution to that area - and receive those upgrades free of charge! As the member would also be well aware, and as I have told the Shire of Denmark, we are proposing to change the capital contribution charge so that it will become more like a headworks charge. That will mean that the developers will ultimately pay less. The developers do not pay that cost themselves. They pass it on to the purchasers of the blocks. Unfortunately, despite the fact that we are reducing the cost of network upgrades and the cost of connections in order to encourage development to take place in regional Western Australia, the developers are still whingeing and complaining! What annoys me most about this matter is the campaign that is being led by the member. The member is winding up people in Denmark and Walpole even though he knows there is likely to be a $14 million upgrade to the network between Albany and Walpole. This is the same member who said to me, “Please do something about this, Minister for Energy! Please help us out. Please help the developers out. Do us a favour!” In response to the member’s request, we have immediately taken $2 million out of the budget of Western Power to upgrade the network to Walpole to meet the development applications that have been made. What was the member’s response? The member said, “Thanks very much for that,” and he then went to Denmark and wound everyone up! The member is now saying, “How about doing it right now? Thanks for the $2 million, but we want it done before Christmas.” As the member for Stirling well knows, the problems in Walpole and Denmark are being addressed. The issues relating to the development applications and their capacity are being addressed as fast as Western Power can possibly do so, given the pressure it is under from huge demand, which has resulted from the economic development of this state. It would be helpful if the member for Stirling desisted from winding up people in Denmark, because they will get the power upgrade they deserve at a time that is acceptable to Western Power’s upgrade plan.
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