Debate short-circuits power bill

The Government's planned changes to the electricity industry face further delays after a deadlock in a committee of MPs.

The holdup to the Electricity Industry Bill occurred because the commerce select committee refused to report it back.

The committee has equal numbers of Government and Opposition MPs, and the vote was tied, which meant agreed changes to it could not be put into a new draft.

The Government will now have to make changes to the bill in the debating chamber, which will be a lengthy process.

The bill is designed to encourage the electricity industry to develop its own solutions to ensure power is delivered in an efficient, fair and reliable way, but gives the Government the power to legislate if the industry does not regulate itself.

When it came back for its second reading yesterday, Finance Minister Michael Cullen berated Opposition members for holding it up and said the select committee hearings had cost half a million dollars.

"It was a petty, pointless payback, setting a precedent that this House must not follow," he said.

National MP Doug Kidd said the legislation was "a monster, a shocker which should be thrown out."

The bill passed its second reading by 66 to 52. It will come back for its committee stage when Parliament resumes after its recess.

- NZPA