Deane Comments Surprising Given Past Statements, Says Bradford

Enterprise and Commerce Minister Max Bradford says he is surprised Telecom head Roderick Deane has claimed the electricity reforms have failed. "It may have more to do with his present employment at Telecom than with a rational view of the electricity reforms," Mr Bradford said.

"I say this because on January 28 1992, Dr Deane, who was then chief executive of ECNZ, wrote to the chair of the commerce and marketing select committee in relation to its inquiry into electricity pricing.

"Dr Deane said, and I quote: "There is also now a large measure of agreement both within the industry and within Government agencies that the overall industry structure which would best achieve competitive market efficiencies includes several key features:

The separation of the natural monopoly lines businesses from the competitive generation and energy trading and retailing activities;

The provision of open access to the transmission and distribution lines; And creation of a wholesale pool which provides for efficient short run co-ordination."

"This is exactly what the Government has done with the electricity reforms," Mr Bradford said.