Laws coming as gas industry backstop

By CHRIS DANIELS

New laws designed to allow full Government control of the largely private sector gas industry are being prepared for presentation to Parliament by the end of this year.

Government officials are in the final stages of putting together the new laws to come into force part way through next year.

Energy Minister Pete Hodgson refers to the new laws as "backstop legislation" - to be used only in the event of the gas industry failing to reach agreement on self-governance plans.

Some in the gas industry were upset when Hodgson's proposed legislation was first circulated, saying it was unnecessary, draconian and ill-suited to the sector.

One described it as using a sledgehammer to crack a walnut.

Hodgson says that he does not even want to use these powers - that he would prefer the industry to govern itself, without his intervention.

He can point to the failure of the electricity industry to reach agreement on self-governance rules as evidence of the need for legislation to be in place, ready to use if needed.