Energy Minister defends Hemmingway decision

David Parker

Energy Minister David Parker has defended his decision not to reappoint Electricity Commission chairman Roy Hemmingway.

Mr Parker announced yesterday Mr Hemmingway would not be reappointed for another three-year-term.

That earned him a stinging rebuke from Mr Hemmingway who accused him of political interference.

It has also been questioned by the National Party and industry groups who say the appointment of former Labour adviser Peter Harris as acting chair could politicise the decision-making process.

Mr Parker said the Government was not blaming the Electricity Commission for delays in vital upgrades. Transpower was also to blame for "process delays", he said.

"Whatever the history it is incumbent on both of these bodies to work together towards a solution."

Mr Hemmingway yesterday said he felt he was being removed because he "stood up to the Government as an independent regulator".

He said he was told some time ago he would not be reappointed at the end of his three-year term.

"It was my hope to leave my post sometime next year after finishing the work on the Auckland transmission upgrade, but I was turned down.

"I can only conclude that I am being removed from office because I stood up to the Government as an independent regulator should.

"I have insisted that regulatory decisions be on the basis of the law and the facts and not on what politicians want."

He has been asked to stay until November 30.

He said he had been promised the Electricity Commission would be independent of the Government's wishes.

"This has not turned out to be true," he said.

National energy spokesman Nick Smith said the Government was using Mr Hemmingway as a scapegoat for its failed policies.

Dr Smith said the appointment of Mr Harris, a former trade union economist and political advisor to Finance Minister Michael Cullen, as an interim replacement confirmed the politicisation of the commission.

- NZPA