Industry bill proceeds despite MPs gesture

By RICHARD BRADDELL utilities writer

The Government's centrepiece electricity industry reform bill will proceed, with amendments, despite the reporting back from the commerce select committee being blocked by Opposition MPs.

Energy Minister Pete Hodgson said the legislation would take account of the select committee's work through amendments that would be introduced in the House.

Despite the committee's agreeing on a raft of amendments, National and Act MPs on the committee blocked the report's referral back to the House, highlighting concerns about "draconian" broad-based powers to make regulations without the constitutional safeguard of review by Parliament's regulations review committee.

In effect, the bill will proceed for passage as if the select committee had never sat.

National's energy spokeswoman, Pansy Wong, while agreeing that the report canvassed Opposition concerns, said it had been the subject of heated debate during long sittings and "was still a dress-up with some public relations sentiment built into it."

In the report, Government and Green members accepted the view of the chairman of the Electricity Governance Establishment Committee, David Caygill, that adding a second layer of legislative and regulatory oversight to the reserve powers vested in the Minister of Energy would defeat the self-regulation objectives of the bill.

The Government has proceeded with its electricity policy under the mantra of "as much industry self-regulation as possible; as much regulation as necessary."

To provide guidance, the bill envisages a detailed statement of objectives being set out in a Government policy statement to which the industry will be required to give effect.

Under the bill, the Government would set broad policy targets for the industry-established governance board. Should it fail to meet those targets, the board could be replaced by the Crown's own Electricity Governance Board.

While the report retained the broad-based policy framework for enabling regulation-making powers objected to by the Regulations Review Committee, it did soften its position on the Electricity Governance Board to the extent that there would be a three-month notice period, expiring after six months, before the crown board would be established.

Ms Wong said that simply created uncertainty; the industry board would be looking to the minister to see which way it should jump next.