Thank you for this opportunity to address your conference on 'The role of coal in the New Zealand energy market'. New Zealand's energy market has, in common with much of New Zealand, undergone major change following the market reforms of the Labour Government. As far as the energy sector is concerned this change has been for the better, as it has created for the first time in a very long time a 'true economic market' for energy in New Zealand. This is in marked contrast to the previous regime where:_x000D_
Electricity was state operated, subsidised and cross subsidised._x000D_
Oil was imported and subject to a raft of taxes and duties._x000D_
Coal produced by state mines was priced by cabinet committee, based on other energy prices rather than on the costs of production and delivery of the energy product._x000D_
Today, with the establishment of the SOE's we have a market of competitive supply, where the customer has the choice of energy with prices based on the true costs of production and delivery. This can only be good for the customer as the cost is now based on the real costs of production, not on political whim. So where does coal fit in this brave new world of free market energy supplies? Well, opportunity, they say, knocks but once.