Page 611 - Week 05 - Tuesday, 4 July 1989
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price of natural gas in the ACT. Firstly, is the Minister aware of the contractual arrangements between the three parties involved in delivering natural gas to Canberra - that is, the original supplier, the Pipeline Authority and AGL - and the fact that those contractual arrangements are such that the delivery of gas into the ACT costs 8 per cent more than the same gas delivered anywhere in New South Wales? It is because of the contractual arrangements that exist. If he is aware of that, which we have inherited, I know, from a previous Commonwealth administration and a Commonwealth Minister, does he intend to enter into negotiations with the parties involved to make sure that natural gas delivered to the ACT costs no more than the same gas delivered to consumers in New South Wales?
MR WHALAN: I thank the Leader of the Opposition for the question. The agreement between the Pipeline Authority and AGL for the piping of gas to Canberra has been negotiated, so we are informed, on a different basis from the original agreement applicable between the Pipeline Authority and AGL in New South Wales. The justification which is offered for that is that the cost for Canberra includes the cost of gas from the Pipeline Authority, a proportion of the costs associated with the main pipeline from the Moomba gas fields, the entire costs associated with the branch line from Dalton to Canberra and a profit margin for the Pipeline Authority. The figure, which may have been quoted, is that there is approximately 28 per cent difference between the cost of gas to AGL for most areas of New South Wales and that for the ACT. What we are committed to - it is one of the matters which has caused a delay in responding to the application by AGL for a 5 per cent price increase - is that we are at this moment investigating the reasons for the price disadvantage. We are investigating that in a review of all the factors relating to the agreement for the supply of gas to Canberra, which was made in 1980 between the Commonwealth and AGL. So we are conscious of it.
We have been the subject of criticism for delay in responding to AGL's application for a price increase. It, of course, has substantially passed on that price to the consumer. The difference in the retail price of gas is not as great as the 28 per cent differential between the wholesale price for the ACT and that for elsewhere in New South Wales. The early indications are that it is an unfair impost on the ACT and the consumers of the ACT, and we will certainly be endeavouring to rectify that situation.
Tasmanian Government
MR DUBY: My question is addressed to the Chief Minister in her role as Minister responsible for intergovernmental relations. Has she written to the new Tasmanian Premier, Mr Field, offering her advice on the traps and pitfalls
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