Liberals turn their backs on jobs and business

20/11/03
Energy Minister Eric Ripper says Liberal MPs are turning their back on jobs and the needs of businesses by refusing to give full support to the Government's electricity reform plans.
Mr Ripper said the reform plan aimed to drive down power costs, attract investment and create more jobs and opportunities throughout Western Australia.
Electricity costs in WA were too high, strangling investment and job growth.
The Minister said:

• medium-sized businesses, with a power bill of $200,000, paid about 22 per cent more than the capital city average;

• small businesses on a demand tariff with an annual bill of about $100,000, paid 18 per cent more;

• small business of a general supply tariff with an annual bill of about $13,000 paid 17 cent per cent more; and

• householders paid about 10 per cent more.

"The Government's reform plan includes tough new consumer protection, such as price caps backed by law, and will allow more investment in the electricity network to improve reliability of power supplies," Mr Ripper said.
"It is astonishing that Liberal MPs should disregard the interests of their electorates by opposing the Government's legislation."
The Minister said the reforms were strongly supported by business, mining and renewable energy groups and were critical to growing the economy.
"Only the Liberal Member for Kalgoorlie has put the interests of his electorate before politics and is supporting the Government's reforms," he said.
"The rest are turning their backs on jobs and the needs of businesses who pay too much for their electricity."
Mr Ripper said the reform plan was a prudent and cautious strategy to introduce greater competition into the electricity market.
"There is enough future demand for energy to allow private power stations to be built in addition to those in Government ownership, introducing healthy competition," he said.
The Minister said the reform plans took account of interstate and international experience and were tailored to suit local conditions.
"The WA solution is to achieve greater competition while retaining full public ownership of energy utilities," he said.
"Privatisation is not the answer."
Independent analysis has suggested the benefits of reform would be an average 8.5 per cent cut in electricity prices, an increase in Gross State Product of up to $300million a year by 2010, and the creation of 2,900 new jobs.
'.when you deregulate the electricity market and you split up Western Power into its respective entities, the fact is you create more competition, you create more generators, you get more generators into the market, and that can only have a downward effect on prices. And the mining industry have realised that, the Chamber of Minerals and Energy have realised that, and I've come to the same realisation.'
Kalgoorlie MLA Matt Birney, Radio 6PR, November 19.
Minister's office: 9222 8788