Power company's overnight switch on foreshore bill

By RUTH BERRY

Transpower has overnight reversed its claim that the foreshore bill will jeopardise the country's power supply, sparking Opposition claims it has been gagged by the Government.

Transpower and the Government yesterday denied political pressure had been placed on the national grid operator to change its stance, although the explanations over which side first made contact were at odds.

The Government nevertheless censured the state-owned enterprise for breaching its "no-surprises" policy.

It said Transpower should have advised it the submission making the claim was being delivered to the first foreshore select committee hearing on Wednesday.

As Transpower downplayed its concerns with the bill, Contact Energy appeared before the committee yesterday, echoing similar concerns to those first raised by Transpower.

They centre on one of the more controversial aspects of the bill - the so-called power of veto.

Contact, a major power supplier, said the provision preventing the granting of resource consents if they had a significant adverse impact on a customary activity created the potential for right-holders to hold electricity generators "to ransom".

The provision could delay activities of national importance, "eroding the value of the activities to those investing in them".

Contact wants the Government to make the same changes as Transpower does to the legislation, giving local authorities the discretion to grant consents in some cases, despite the adverse effect on customary right-holders.

Transpower's submission said the bill "appears to provide that where incompatibility arises, Transpower will be prevented from obtaining and exercising the rights it requires under the RMA to carry out its activities, thereby jeopardising the long- term and secure transmission of electricity around the country".

But Transpower National Grid general manager David Laurie, who wrote the submission, said yesterday: "The bill does not create a threat to security of electricity supply, either now or in the future."

The purpose of the submission was "simply to procure a number of amendments to provide an improved framework in which it can go about its business of managing the national grid".

Transpower spokesman Chris Roberts later said the use of the word "jeopardise" in the submission had been unfortunate.

National energy spokesman Roger Sowry said it "stretches the realms of credibility for Transpower to have a strongly held view one day, then change its tune the next without some kind of message coming from above".

"Once again the Government is stifling business concerns about infrastructure."

Energy Minister Pete Hodgson rejected the gagging claim, saying his office had not contacted Transpower over its submission.

Mr Roberts said Transpower initiated contact with the office of Crown Company Monitoring and Advisory Unit Minister Mark Burton yesterday morning to advise that its statement was coming out and to apologise for failing to alert the Government about its submission.

Mr Burton's spokeswoman said a staff member had initiated the contact with Transpower, but only to seek a copy of the statement, which CCMAU had advised was coming.

No directions were issued to Transpower, she said.

CCMAU executive director Murray Wright said he contacted Transpower yesterday to express his disappointment at the "no surprises" breach, but had not issued any instructions regarding the submission's content.

Although the changes sought by Contact and Transpower would require a policy shift, other submitters are seeking drafting changes.

Wellington City Council is seeking one after legal advice suggesting city-owned Wellington Harbour might otherwise be transferred into Crown ownership - not the intention of the bill.

Most other submitters to appear before the committee yesterday opposed the bill, including the National Council of Women and Te Runanga o Ngati Awa.


Power lines

* Transpower on Wednesday

* The bill "appears to provide that where incompatibility arises, Transpower will be prevented from obtaining and exercising the rights it requires under the RMA to carry out its activities, thereby jeopardising the long-term and secure transmission of electricity around the country".

* Transpower yesterday

* "The bill does not create a threat to security of electricity supply, either now or in the future."