Labour and Greens want Stalinist price controls on power

Labour and the Greens are committing economic sabotage in proposing Stalinist style state control of power prices.

It would be a disaster for private investors.. all those people with their savings in Contact and Trustpower shares (including Kiwisavers) would have their investment destroyed by their proposal.

Labour is promising to cut the average Kiwi power bill by up to $330 a year if elected to government.

It plans to do so by setting up a single buyer, NZ Power, to purchase all electricity generation at a fair price.

At a joint press conference Green co-leader Russel Norman outlined a similar policy, although the Greens would introduce an element of progressive pricing.?

Norman said each household would receive a 300 kilowatt-hours block on which they paid only lines and normal retail costs.

After that they would pay higher prices for additional power used.

The Greens did not supply estimates of how long 300 kWh of electricity would last the average household.

“That will save each family $300 a year while encouraging efficient use of power at the margins.”

Announcing the plans Labour leader David Shearer and Norman said they had been working independently on their policies and realised they were heading in a very similar direction.

While there were differences ”at the margin” such as over progressive pricing they believed they could negotiate a compromise.

Labour’s finance spokesman David Parker said Labour was open to discussing progressive pricing, but there were issues of equity such as between different regions with different climates.

Shearer said the plan would bring down prices and create 5000 jobs in the wider economy.

It would cut the nation’s power bills by up to $700m a year.

This announcement is even more crazy than if they?announced?massive investment in solar energy. Instead they are effectively crippling our power generation capacity through economic stupidity.

No one would invest in new generation – why would they, there is no incentive, through profit to embark ont eh very expensive process of building power generation.

Price setting didn’t work for Muldoon in the 80’s nor did it work for Soviet Russia

Quite how having the state fix power prices will create jobs is beyond me. Where will the 5000 jobs supposedly come from? Or is that how many people Labour and the Greens hope to employ in the new State Power Control organisation?

What happened to their bleating about the dividends lost to the state though asset sales? – now they’re totally forgoing them undermining their entire argument

State control seldom succeeds…actually it never succeeds.

This is once again a desperate attempt and shabby attempt to undermine Mighty River Power float and upset the 400,000+ NZers who expressed an interest.

Is this an attempt to get cheap power for all the money printing presses they’d be running.

Oh and then of course there’s the costs to households of a supercharged ETS, banning fracking, banning oil and gas exploration, banning new hydro dams…and what ever else the Green taliban demands we do to prevent progress.

One thing is certain now though. Labour has ceded economic policy ideas to the Greens and out-sourced it all to the relics of communism.