Mr. Ripper questions Premier Barnett on gas price increases, attributing them to the government's approval and past privatisation. Barnett defends the increases as necessary to ensure gas supply, blaming market forces and advocating for increased domestic gas production.

AnsweredQoN 420Legislative Assembly
Asked
18 August 2010
Portfolio
Premier

QuestionView source ↗

GAS PRICE INCREASES
I must say that even my grey old dog in Rivervale would have heard that whistle! Mr C.J. Barnett : At least he might have done something! Mr E.S. RIPPER : Premier, let us return to state politics and what the government is doing to WA families! I refer to the fact that many households across Western Australia have recently received their electricity, water, gas and local government rates bills and I note that the now Premier was the minister who privatised Alinta and the Dampier to Bunbury gas pipeline. (1) Why has the government used its power under the regulations to allow gas price increases of 31.6 per cent, or $115.30, over two years? (2) Why does the government not use its power to cap prices to protect Western Australian seniors and Western Australian families generally? Mr C.J. BARNETT

AnswerView source ↗

(1)–(2) The implication of that is the Labor Party would intervene on the gas market, is that right? Mr E.S. Ripper : You have power. You actually used your power and you approved these price increases so you have to take responsibility. We would protect WA families! Mr C.J. BARNETT : The price of gas has risen substantially. There is a cushioning effect because most of the existing contracts are in the range of around $2.50 a gigajoule but new gas contracts, and they are coming up for renewal, typically are hitting the range of $6 to $10—that is the problem. That is the problem with the market of gas. Whether it is government-owned or privately-owned will make no difference if the market price is going up. The solution in the medium to longer term is to bring more gas into the domestic market. That is the only solution. We cannot artificially limit a market. It simply does not work. It is like a big lump of jelly; if we squeeze it at one end, it pops out the other. Mr E.S. Ripper : But you have approved the increases. Mr C.J. BARNETT : That is true. Mr E.S. Ripper : You have approved these increases—your minister has. Mr C.J. BARNETT : Had they not been approved, what would the scenario have been? It would have been a lack of supply of gas into the future. It is easy to wave a wand and to pretend to be able to solve these problems. In both the tone and content of his questions, the Leader of the Opposition is misleading the good seniors upstairs in the public gallery. He is misleading them because he is trying to create the impression that a government can arbitrarily solve real economic crises, like a shortage of water or the rising cost of water supply and rising gas prices—that the government can artificially change them. It cannot and the Leader of the Opposition knows that. The Leader of the Opposition has criticised me for raising the issue of asylum seekers. Why not raise it? It affects every Western Australian and there is concern. Yet the Leader of the Opposition raises issues for which he bears a large part of the responsibility and tries to mislead people that those issues can be solved at the stroke of a pen. They cannot, and the Leader of the Opposition knows that.
Mr C.J. Barnett : At least he might have done something! Mr E.S. RIPPER : Premier, let us return to state politics and what the government is doing to WA families! I refer to the fact that many households across Western Australia have recently received their electricity, water, gas and local government rates bills and I note that the now Premier was the minister who privatised Alinta and the Dampier to Bunbury gas pipeline. (1) Why has the government used its power under the regulations to allow gas price increases of 31.6 per cent, or $115.30, over two years? (2) Why does the government not use its power to cap prices to protect Western Australian seniors and Western Australian families generally? Mr C.J. BARNETT replied: (1)–(2) The implication of that is the Labor Party would intervene on the gas market, is that right? Mr E.S. Ripper : You have power. You actually used your power and you approved these price increases so you have to take responsibility. We would protect WA families! Mr C.J. BARNETT : The price of gas has risen substantially. There is a cushioning effect because most of the existing contracts are in the range of around $2.50 a gigajoule but new gas contracts, and they are coming up for renewal, typically are hitting the range of $6 to $10—that is the problem. That is the problem with the market of gas. Whether it is government-owned or privately-owned will make no difference if the market price is going up. The solution in the medium to longer term is to bring more gas into the domestic market. That is the only solution. We cannot artificially limit a market. It simply does not work. It is like a big lump of jelly; if we squeeze it at one end, it pops out the other. Mr E.S. Ripper : But you have approved the increases. Mr C.J. BARNETT : That is true. Mr E.S. Ripper : You have approved these increases—your minister has. Mr C.J. BARNETT : Had they not been approved, what would the scenario have been? It would have been a lack of supply of gas into the future. It is easy to wave a wand and to pretend to be able to solve these problems. In both the tone and content of his questions, the Leader of the Opposition is misleading the good seniors upstairs in the public gallery. He is misleading them because he is trying to create the impression that a government can arbitrarily solve real economic crises, like a shortage of water or the rising cost of water supply and rising gas prices—that the government can artificially change them. It cannot and the Leader of the Opposition knows that. The Leader of the Opposition has criticised me for raising the issue of asylum seekers. Why not raise it? It affects every Western Australian and there is concern. Yet the Leader of the Opposition raises issues for which he bears a large part of the responsibility and tries to mislead people that those issues can be solved at the stroke of a pen. They cannot, and the Leader of the Opposition knows that.
Mr E.S. RIPPER : Premier, let us return to state politics and what the government is doing to WA families! I refer to the fact that many households across Western Australia have recently received their electricity, water, gas and local government rates bills and I note that the now Premier was the minister who privatised Alinta and the Dampier to Bunbury gas pipeline. (1) Why has the government used its power under the regulations to allow gas price increases of 31.6 per cent, or $115.30, over two years? (2) Why does the government not use its power to cap prices to protect Western Australian seniors and Western Australian families generally? Mr C.J. BARNETT replied: (1)–(2) The implication of that is the Labor Party would intervene on the gas market, is that right? Mr E.S. Ripper : You have power. You actually used your power and you approved these price increases so you have to take responsibility. We would protect WA families! Mr C.J. BARNETT : The price of gas has risen substantially. There is a cushioning effect because most of the existing contracts are in the range of around $2.50 a gigajoule but new gas contracts, and they are coming up for renewal, typically are hitting the range of $6 to $10—that is the problem. That is the problem with the market of gas. Whether it is government-owned or privately-owned will make no difference if the market price is going up. The solution in the medium to longer term is to bring more gas into the domestic market. That is the only solution. We cannot artificially limit a market. It simply does not work. It is like a big lump of jelly; if we squeeze it at one end, it pops out the other. Mr E.S. Ripper : But you have approved the increases. Mr C.J. BARNETT : That is true. Mr E.S. Ripper : You have approved these increases—your minister has. Mr C.J. BARNETT : Had they not been approved, what would the scenario have been? It would have been a lack of supply of gas into the future. It is easy to wave a wand and to pretend to be able to solve these problems. In both the tone and content of his questions, the Leader of the Opposition is misleading the good seniors upstairs in the public gallery. He is misleading them because he is trying to create the impression that a government can arbitrarily solve real economic crises, like a shortage of water or the rising cost of water supply and rising gas prices—that the government can artificially change them. It cannot and the Leader of the Opposition knows that. The Leader of the Opposition has criticised me for raising the issue of asylum seekers. Why not raise it? It affects every Western Australian and there is concern. Yet the Leader of the Opposition raises issues for which he bears a large part of the responsibility and tries to mislead people that those issues can be solved at the stroke of a pen. They cannot, and the Leader of the Opposition knows that.
I refer to the fact that many households across Western Australia have recently received their electricity, water, gas and local government rates bills and I note that the now Premier was the minister who privatised Alinta and the Dampier to Bunbury gas pipeline. (1) Why has the government used its power under the regulations to allow gas price increases of 31.6 per cent, or $115.30, over two years? (2) Why does the government not use its power to cap prices to protect Western Australian seniors and Western Australian families generally? Mr C.J. BARNETT replied: (1)–(2) The implication of that is the Labor Party would intervene on the gas market, is that right? Mr E.S. Ripper : You have power. You actually used your power and you approved these price increases so you have to take responsibility. We would protect WA families! Mr C.J. BARNETT : The price of gas has risen substantially. There is a cushioning effect because most of the existing contracts are in the range of around $2.50 a gigajoule but new gas contracts, and they are coming up for renewal, typically are hitting the range of $6 to $10—that is the problem. That is the problem with the market of gas. Whether it is government-owned or privately-owned will make no difference if the market price is going up. The solution in the medium to longer term is to bring more gas into the domestic market. That is the only solution. We cannot artificially limit a market. It simply does not work. It is like a big lump of jelly; if we squeeze it at one end, it pops out the other. Mr E.S. Ripper : But you have approved the increases. Mr C.J. BARNETT : That is true. Mr E.S. Ripper : You have approved these increases—your minister has. Mr C.J. BARNETT : Had they not been approved, what would the scenario have been? It would have been a lack of supply of gas into the future. It is easy to wave a wand and to pretend to be able to solve these problems. In both the tone and content of his questions, the Leader of the Opposition is misleading the good seniors upstairs in the public gallery. He is misleading them because he is trying to create the impression that a government can arbitrarily solve real economic crises, like a shortage of water or the rising cost of water supply and rising gas prices—that the government can artificially change them. It cannot and the Leader of the Opposition knows that. The Leader of the Opposition has criticised me for raising the issue of asylum seekers. Why not raise it? It affects every Western Australian and there is concern. Yet the Leader of the Opposition raises issues for which he bears a large part of the responsibility and tries to mislead people that those issues can be solved at the stroke of a pen. They cannot, and the Leader of the Opposition knows that.
(1) Why has the government used its power under the regulations to allow gas price increases of 31.6 per cent, or $115.30, over two years? (2) Why does the government not use its power to cap prices to protect Western Australian seniors and Western Australian families generally? Mr C.J. BARNETT replied: (1)–(2) The implication of that is the Labor Party would intervene on the gas market, is that right? Mr E.S. Ripper : You have power. You actually used your power and you approved these price increases so you have to take responsibility. We would protect WA families! Mr C.J. BARNETT : The price of gas has risen substantially. There is a cushioning effect because most of the existing contracts are in the range of around $2.50 a gigajoule but new gas contracts, and they are coming up for renewal, typically are hitting the range of $6 to $10—that is the problem. That is the problem with the market of gas. Whether it is government-owned or privately-owned will make no difference if the market price is going up. The solution in the medium to longer term is to bring more gas into the domestic market. That is the only solution. We cannot artificially limit a market. It simply does not work. It is like a big lump of jelly; if we squeeze it at one end, it pops out the other. Mr E.S. Ripper : But you have approved the increases. Mr C.J. BARNETT : That is true. Mr E.S. Ripper : You have approved these increases—your minister has. Mr C.J. BARNETT : Had they not been approved, what would the scenario have been? It would have been a lack of supply of gas into the future. It is easy to wave a wand and to pretend to be able to solve these problems. In both the tone and content of his questions, the Leader of the Opposition is misleading the good seniors upstairs in the public gallery. He is misleading them because he is trying to create the impression that a government can arbitrarily solve real economic crises, like a shortage of water or the rising cost of water supply and rising gas prices—that the government can artificially change them. It cannot and the Leader of the Opposition knows that. The Leader of the Opposition has criticised me for raising the issue of asylum seekers. Why not raise it? It affects every Western Australian and there is concern. Yet the Leader of the Opposition raises issues for which he bears a large part of the responsibility and tries to mislead people that those issues can be solved at the stroke of a pen. They cannot, and the Leader of the Opposition knows that.
(2) Why does the government not use its power to cap prices to protect Western Australian seniors and Western Australian families generally? Mr C.J. BARNETT replied: (1)–(2) The implication of that is the Labor Party would intervene on the gas market, is that right? Mr E.S. Ripper : You have power. You actually used your power and you approved these price increases so you have to take responsibility. We would protect WA families! Mr C.J. BARNETT : The price of gas has risen substantially. There is a cushioning effect because most of the existing contracts are in the range of around $2.50 a gigajoule but new gas contracts, and they are coming up for renewal, typically are hitting the range of $6 to $10—that is the problem. That is the problem with the market of gas. Whether it is government-owned or privately-owned will make no difference if the market price is going up. The solution in the medium to longer term is to bring more gas into the domestic market. That is the only solution. We cannot artificially limit a market. It simply does not work. It is like a big lump of jelly; if we squeeze it at one end, it pops out the other. Mr E.S. Ripper : But you have approved the increases. Mr C.J. BARNETT : That is true. Mr E.S. Ripper : You have approved these increases—your minister has. Mr C.J. BARNETT : Had they not been approved, what would the scenario have been? It would have been a lack of supply of gas into the future. It is easy to wave a wand and to pretend to be able to solve these problems. In both the tone and content of his questions, the Leader of the Opposition is misleading the good seniors upstairs in the public gallery. He is misleading them because he is trying to create the impression that a government can arbitrarily solve real economic crises, like a shortage of water or the rising cost of water supply and rising gas prices—that the government can artificially change them. It cannot and the Leader of the Opposition knows that. The Leader of the Opposition has criticised me for raising the issue of asylum seekers. Why not raise it? It affects every Western Australian and there is concern. Yet the Leader of the Opposition raises issues for which he bears a large part of the responsibility and tries to mislead people that those issues can be solved at the stroke of a pen. They cannot, and the Leader of the Opposition knows that.
Mr C.J. BARNETT replied: (1)–(2) The implication of that is the Labor Party would intervene on the gas market, is that right? Mr E.S. Ripper : You have power. You actually used your power and you approved these price increases so you have to take responsibility. We would protect WA families! Mr C.J. BARNETT : The price of gas has risen substantially. There is a cushioning effect because most of the existing contracts are in the range of around $2.50 a gigajoule but new gas contracts, and they are coming up for renewal, typically are hitting the range of $6 to $10—that is the problem. That is the problem with the market of gas. Whether it is government-owned or privately-owned will make no difference if the market price is going up. The solution in the medium to longer term is to bring more gas into the domestic market. That is the only solution. We cannot artificially limit a market. It simply does not work. It is like a big lump of jelly; if we squeeze it at one end, it pops out the other. Mr E.S. Ripper : But you have approved the increases. Mr C.J. BARNETT : That is true. Mr E.S. Ripper : You have approved these increases—your minister has. Mr C.J. BARNETT : Had they not been approved, what would the scenario have been? It would have been a lack of supply of gas into the future. It is easy to wave a wand and to pretend to be able to solve these problems. In both the tone and content of his questions, the Leader of the Opposition is misleading the good seniors upstairs in the public gallery. He is misleading them because he is trying to create the impression that a government can arbitrarily solve real economic crises, like a shortage of water or the rising cost of water supply and rising gas prices—that the government can artificially change them. It cannot and the Leader of the Opposition knows that. The Leader of the Opposition has criticised me for raising the issue of asylum seekers. Why not raise it? It affects every Western Australian and there is concern. Yet the Leader of the Opposition raises issues for which he bears a large part of the responsibility and tries to mislead people that those issues can be solved at the stroke of a pen. They cannot, and the Leader of the Opposition knows that.
(1)–(2) The implication of that is the Labor Party would intervene on the gas market, is that right? Mr E.S. Ripper : You have power. You actually used your power and you approved these price increases so you have to take responsibility. We would protect WA families! Mr C.J. BARNETT : The price of gas has risen substantially. There is a cushioning effect because most of the existing contracts are in the range of around $2.50 a gigajoule but new gas contracts, and they are coming up for renewal, typically are hitting the range of $6 to $10—that is the problem. That is the problem with the market of gas. Whether it is government-owned or privately-owned will make no difference if the market price is going up. The solution in the medium to longer term is to bring more gas into the domestic market. That is the only solution. We cannot artificially limit a market. It simply does not work. It is like a big lump of jelly; if we squeeze it at one end, it pops out the other. Mr E.S. Ripper : But you have approved the increases. Mr C.J. BARNETT : That is true. Mr E.S. Ripper : You have approved these increases—your minister has. Mr C.J. BARNETT : Had they not been approved, what would the scenario have been? It would have been a lack of supply of gas into the future. It is easy to wave a wand and to pretend to be able to solve these problems. In both the tone and content of his questions, the Leader of the Opposition is misleading the good seniors upstairs in the public gallery. He is misleading them because he is trying to create the impression that a government can arbitrarily solve real economic crises, like a shortage of water or the rising cost of water supply and rising gas prices—that the government can artificially change them. It cannot and the Leader of the Opposition knows that. The Leader of the Opposition has criticised me for raising the issue of asylum seekers. Why not raise it? It affects every Western Australian and there is concern. Yet the Leader of the Opposition raises issues for which he bears a large part of the responsibility and tries to mislead people that those issues can be solved at the stroke of a pen. They cannot, and the Leader of the Opposition knows that.
Mr E.S. Ripper : You have power. You actually used your power and you approved these price increases so you have to take responsibility. We would protect WA families! Mr C.J. BARNETT : The price of gas has risen substantially. There is a cushioning effect because most of the existing contracts are in the range of around $2.50 a gigajoule but new gas contracts, and they are coming up for renewal, typically are hitting the range of $6 to $10—that is the problem. That is the problem with the market of gas. Whether it is government-owned or privately-owned will make no difference if the market price is going up. The solution in the medium to longer term is to bring more gas into the domestic market. That is the only solution. We cannot artificially limit a market. It simply does not work. It is like a big lump of jelly; if we squeeze it at one end, it pops out the other. Mr E.S. Ripper : But you have approved the increases. Mr C.J. BARNETT : That is true. Mr E.S. Ripper : You have approved these increases—your minister has. Mr C.J. BARNETT : Had they not been approved, what would the scenario have been? It would have been a lack of supply of gas into the future. It is easy to wave a wand and to pretend to be able to solve these problems. In both the tone and content of his questions, the Leader of the Opposition is misleading the good seniors upstairs in the public gallery. He is misleading them because he is trying to create the impression that a government can arbitrarily solve real economic crises, like a shortage of water or the rising cost of water supply and rising gas prices—that the government can artificially change them. It cannot and the Leader of the Opposition knows that. The Leader of the Opposition has criticised me for raising the issue of asylum seekers. Why not raise it? It affects every Western Australian and there is concern. Yet the Leader of the Opposition raises issues for which he bears a large part of the responsibility and tries to mislead people that those issues can be solved at the stroke of a pen. They cannot, and the Leader of the Opposition knows that.
Mr C.J. BARNETT : The price of gas has risen substantially. There is a cushioning effect because most of the existing contracts are in the range of around $2.50 a gigajoule but new gas contracts, and they are coming up for renewal, typically are hitting the range of $6 to $10—that is the problem. That is the problem with the market of gas. Whether it is government-owned or privately-owned will make no difference if the market price is going up. The solution in the medium to longer term is to bring more gas into the domestic market. That is the only solution. We cannot artificially limit a market. It simply does not work. It is like a big lump of jelly; if we squeeze it at one end, it pops out the other. Mr E.S. Ripper : But you have approved the increases. Mr C.J. BARNETT : That is true. Mr E.S. Ripper : You have approved these increases—your minister has. Mr C.J. BARNETT : Had they not been approved, what would the scenario have been? It would have been a lack of supply of gas into the future. It is easy to wave a wand and to pretend to be able to solve these problems. In both the tone and content of his questions, the Leader of the Opposition is misleading the good seniors upstairs in the public gallery. He is misleading them because he is trying to create the impression that a government can arbitrarily solve real economic crises, like a shortage of water or the rising cost of water supply and rising gas prices—that the government can artificially change them. It cannot and the Leader of the Opposition knows that. The Leader of the Opposition has criticised me for raising the issue of asylum seekers. Why not raise it? It affects every Western Australian and there is concern. Yet the Leader of the Opposition raises issues for which he bears a large part of the responsibility and tries to mislead people that those issues can be solved at the stroke of a pen. They cannot, and the Leader of the Opposition knows that.
Mr E.S. Ripper : But you have approved the increases. Mr C.J. BARNETT : That is true. Mr E.S. Ripper : You have approved these increases—your minister has. Mr C.J. BARNETT : Had they not been approved, what would the scenario have been? It would have been a lack of supply of gas into the future. It is easy to wave a wand and to pretend to be able to solve these problems. In both the tone and content of his questions, the Leader of the Opposition is misleading the good seniors upstairs in the public gallery. He is misleading them because he is trying to create the impression that a government can arbitrarily solve real economic crises, like a shortage of water or the rising cost of water supply and rising gas prices—that the government can artificially change them. It cannot and the Leader of the Opposition knows that. The Leader of the Opposition has criticised me for raising the issue of asylum seekers. Why not raise it? It affects every Western Australian and there is concern. Yet the Leader of the Opposition raises issues for which he bears a large part of the responsibility and tries to mislead people that those issues can be solved at the stroke of a pen. They cannot, and the Leader of the Opposition knows that.
Mr C.J. BARNETT : That is true. Mr E.S. Ripper : You have approved these increases—your minister has. Mr C.J. BARNETT : Had they not been approved, what would the scenario have been? It would have been a lack of supply of gas into the future. It is easy to wave a wand and to pretend to be able to solve these problems. In both the tone and content of his questions, the Leader of the Opposition is misleading the good seniors upstairs in the public gallery. He is misleading them because he is trying to create the impression that a government can arbitrarily solve real economic crises, like a shortage of water or the rising cost of water supply and rising gas prices—that the government can artificially change them. It cannot and the Leader of the Opposition knows that. The Leader of the Opposition has criticised me for raising the issue of asylum seekers. Why not raise it? It affects every Western Australian and there is concern. Yet the Leader of the Opposition raises issues for which he bears a large part of the responsibility and tries to mislead people that those issues can be solved at the stroke of a pen. They cannot, and the Leader of the Opposition knows that.
Mr E.S. Ripper : You have approved these increases—your minister has. Mr C.J. BARNETT : Had they not been approved, what would the scenario have been? It would have been a lack of supply of gas into the future. It is easy to wave a wand and to pretend to be able to solve these problems. In both the tone and content of his questions, the Leader of the Opposition is misleading the good seniors upstairs in the public gallery. He is misleading them because he is trying to create the impression that a government can arbitrarily solve real economic crises, like a shortage of water or the rising cost of water supply and rising gas prices—that the government can artificially change them. It cannot and the Leader of the Opposition knows that. The Leader of the Opposition has criticised me for raising the issue of asylum seekers. Why not raise it? It affects every Western Australian and there is concern. Yet the Leader of the Opposition raises issues for which he bears a large part of the responsibility and tries to mislead people that those issues can be solved at the stroke of a pen. They cannot, and the Leader of the Opposition knows that.
Mr C.J. BARNETT : Had they not been approved, what would the scenario have been? It would have been a lack of supply of gas into the future. It is easy to wave a wand and to pretend to be able to solve these problems. In both the tone and content of his questions, the Leader of the Opposition is misleading the good seniors upstairs in the public gallery. He is misleading them because he is trying to create the impression that a government can arbitrarily solve real economic crises, like a shortage of water or the rising cost of water supply and rising gas prices—that the government can artificially change them. It cannot and the Leader of the Opposition knows that. The Leader of the Opposition has criticised me for raising the issue of asylum seekers. Why not raise it? It affects every Western Australian and there is concern. Yet the Leader of the Opposition raises issues for which he bears a large part of the responsibility and tries to mislead people that those issues can be solved at the stroke of a pen. They cannot, and the Leader of the Opposition knows that.
It is easy to wave a wand and to pretend to be able to solve these problems. In both the tone and content of his questions, the Leader of the Opposition is misleading the good seniors upstairs in the public gallery. He is misleading them because he is trying to create the impression that a government can arbitrarily solve real economic crises, like a shortage of water or the rising cost of water supply and rising gas prices—that the government can artificially change them. It cannot and the Leader of the Opposition knows that. The Leader of the Opposition has criticised me for raising the issue of asylum seekers. Why not raise it? It affects every Western Australian and there is concern. Yet the Leader of the Opposition raises issues for which he bears a large part of the responsibility and tries to mislead people that those issues can be solved at the stroke of a pen. They cannot, and the Leader of the Opposition knows that.
The Leader of the Opposition has criticised me for raising the issue of asylum seekers. Why not raise it? It affects every Western Australian and there is concern. Yet the Leader of the Opposition raises issues for which he bears a large part of the responsibility and tries to mislead people that those issues can be solved at the stroke of a pen. They cannot, and the Leader of the Opposition knows that.

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