❓ Mr. L'Estrange questions the Minister for Energy about misleading comments regarding the Synergy and Verve merger. The Minister defends the merger as a success, citing significant cost savings and criticising the opposition's energy policies.
AnsweredQoN 923Legislative Assembly
QuestionView source ↗
SYNERGY
AND VERVE — MERGER
923. Mr S.K. L'ESTRANGE to the
Minister for Energy:
On the weekend I was troubled to
read in one of the papers —
Several members interjected.
The
SPEAKER : Members!
Mr
S.K. L'ESTRANGE : Mr Speaker, this question is in order because I
was —
The
SPEAKER : Thank you. I do not want you to explain why it is in order. Just
ask the question.
Mr
S.K. L'ESTRANGE : In one of the papers, misleading comments were
made by members opposite regarding the Verve and Synergy merger. Could the minister
please update the house, with accuracy, because members opposite clearly do not
understand that, on the outcomes of this merger?
AND VERVE — MERGER
923. Mr S.K. L'ESTRANGE to the
Minister for Energy:
On the weekend I was troubled to
read in one of the papers —
Several members interjected.
The
SPEAKER : Members!
Mr
S.K. L'ESTRANGE : Mr Speaker, this question is in order because I
was —
The
SPEAKER : Thank you. I do not want you to explain why it is in order. Just
ask the question.
Mr
S.K. L'ESTRANGE : In one of the papers, misleading comments were
made by members opposite regarding the Verve and Synergy merger. Could the minister
please update the house, with accuracy, because members opposite clearly do not
understand that, on the outcomes of this merger?
AnswerView source ↗
I want to thank the member for the
question. I read the article too. I understand why the member would cough on
his Weet-Bix. Nonetheless, he should not because it was false. The Synergy
merger has been an overwhelming success. As members know, we inherited an
electricity system that was a complete and costly mess. One of the things that
we have done is put Synergy and Verve together. In one year that saved $124 million,
or a 24 per cent reduction in subsidies.
Mr
M.P. Murray interjected.
The
SPEAKER : Member for Collie, I call you to order for the first time.
Dr
M.D. NAHAN : The article tried to masquerade or skip that, even though the
journalist was told about it. Over the forward estimates, we will reduce the
subsidies by an additional $450 million, so over $550 million will be saved in
a year. I would say that that is a success by any measure.
The
article also focused on the wages of the executive. Let me be clear that the
merger led to a reduced number of executives. In the year 2014–15, all
the executives got no more than the CPI target of 2.75 per cent. We did not
sign the CEO's contract for three months because we were in the process
of a merger; those three months accrued to one year. We told the journalist
about that. It is referred to in the annual report; it is all clear and above
board. We reduced the executive bill. We restrained the growth in executive
salaries individually and collectively to $2.75 million, and we achieved $550 million
in subsidy savings in one year. That is a good outcome.
Members opposite made the mess but
they had no solutions. In fact, if we look at their big red book, we can see
that the only section that relates to electricity is the grand commitment—a
really powerful commitment—to put solar cells on Homeswest homes and
charge people for it. There is no mention of reducing the subsidies or the
capacities or reforming the market. There is nothing like that. All they want
to do is put solar cells on Homeswest homes and charge people for it. We are
already doing that. Members opposite made the mess. They had no ideas. We are
fixing it. When we read their comments in the paper, members should not choke
on their Weet-Bix because it is just flim-flam. Members opposite have no ideas
and have no idea.
Several members interjected.
The
SPEAKER : I do not know who is shouting across at whom.
Mr
F.M. Logan interjected.
The
SPEAKER : Member for Cockburn!
question. I read the article too. I understand why the member would cough on
his Weet-Bix. Nonetheless, he should not because it was false. The Synergy
merger has been an overwhelming success. As members know, we inherited an
electricity system that was a complete and costly mess. One of the things that
we have done is put Synergy and Verve together. In one year that saved $124 million,
or a 24 per cent reduction in subsidies.
Mr
M.P. Murray interjected.
The
SPEAKER : Member for Collie, I call you to order for the first time.
Dr
M.D. NAHAN : The article tried to masquerade or skip that, even though the
journalist was told about it. Over the forward estimates, we will reduce the
subsidies by an additional $450 million, so over $550 million will be saved in
a year. I would say that that is a success by any measure.
The
article also focused on the wages of the executive. Let me be clear that the
merger led to a reduced number of executives. In the year 2014–15, all
the executives got no more than the CPI target of 2.75 per cent. We did not
sign the CEO's contract for three months because we were in the process
of a merger; those three months accrued to one year. We told the journalist
about that. It is referred to in the annual report; it is all clear and above
board. We reduced the executive bill. We restrained the growth in executive
salaries individually and collectively to $2.75 million, and we achieved $550 million
in subsidy savings in one year. That is a good outcome.
Members opposite made the mess but
they had no solutions. In fact, if we look at their big red book, we can see
that the only section that relates to electricity is the grand commitment—a
really powerful commitment—to put solar cells on Homeswest homes and
charge people for it. There is no mention of reducing the subsidies or the
capacities or reforming the market. There is nothing like that. All they want
to do is put solar cells on Homeswest homes and charge people for it. We are
already doing that. Members opposite made the mess. They had no ideas. We are
fixing it. When we read their comments in the paper, members should not choke
on their Weet-Bix because it is just flim-flam. Members opposite have no ideas
and have no idea.
Several members interjected.
The
SPEAKER : I do not know who is shouting across at whom.
Mr
F.M. Logan interjected.
The
SPEAKER : Member for Cockburn!
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