Farmer Leaders to Discuss Lines

A delegation of provincial farmer leaders visits Wellington next week for meetings to explore solutions to the long-running problem of access to existing power lines.

Federated Farmers representatives from Auckland, Waikato and South Canterbury provinces will meet government ministers, key opposition MPs, and Transpower on Tuesday, September 4.

“All we are looking for is enduring access and easement agreements for the modern era,” said John Sexton of Auckland Federated Farmers.

Farmers and other land owners are in dispute with Transpower over the disruption caused by upgrading and maintaining transmission lines over farm properties.

“These lines were built in the 1950s, a time when transmission was non-profit, and many farmers were happy to provide free access if power was cheap,” Mr Sexton said.

“But since deregulation, electricity has become expensive and power companies are profit driven, paying large dividends to shareholders. Meanwhile landowners are locked into 1950s legislation and are expected to provide free access to power lines over their productive land. In other words, farmers are subsidising power companies’ exorbitant profits while putting up with many restrictions placed on land use activities along line corridors and on land adjacent to lines.

“Federated Farmers is seeking a negotiated settlement which results in Transpower agreeing to access and easement agreements which pay a yearly annuity.

“The Federation has put proposals to Transpower and the government that such an annuity would add only 0.3 cents per unit to the retail cost of electricity. This agreement would be phased in over 10 years.

“We are always told power consumers and the industry can not afford this increase, but the fact is that this amount pales into insignificance compared to power price increases each year. For example, Contact Energy will next month increase the cost of a unit of electricity by 0.75 cents per unit to 21.172 cents/unit (anytime rate, excluding GST).

“Farmers are not expecting a breakthrough next week, but they will go into talks with a positive frame of mind,” Mr Sexon said.

The scheduled meetings are:

1. Energy Minister David Parker and Agriculture Minister Jim Anderton;

2. National’s energy spokesman Gerry Brownlee, small business spokesman Lindsay Tisch, and environment spokesman Nick Smith.

3. Transpower officials.