Integral Energy Futures Trading

The Hon. D. J. GAY: My question without notice is directed to my friend the Treasurer, and Vice-President of the Executive Council. Is the Treasurer aware that he has not answered any of my recent questions concerning Integral Energy? Is the Treasurer able to give me simple yes or no answers? Was there or was there not a loss on futures trading by Integral Energy in its half-yearly result - yes, or no? Was the loss by Integral Energy less or more than $80 million?

The Hon. M. R. EGAN: I have answered fully and completely on a number of occasions the questions which the Hon. D. J. Gay has asked. To the best of my ability I will repeat the full and complete answers that I gave him on those occasions. It is true - as Integral Energy reported in its half-yearly report, which was tabled in this Parliament earlier in the year - that this year Integral Energy will make only about a $50 million profit from its operations. As honourable members are aware, electricity distributors engage in both the distribution activity, which is the poles and wires business, and also electricity retailing, which involves the buying and selling of electricity. In other words, they act as electricity energy traders.

Integral, in its trading function, made a loss this year, which is the reason it will return only a $50 million profit, which, of course, is part of the return of more than $500 million to the State this year from electricity utilities which are owned by the people of New South Wales. I suppose that the loss that Integral Energy will make from its energy trading this year will depend on the ups and downs of electricity prices over a period. But it will certainly be a substantial loss. I do not think we will know, until Integral Energy tables its annual report, precisely what the loss on energy trading will be. I have referred to energy trading; I think the Hon. D. J. Gay is talking about futures trading. I would not describe it as futures trading; it is the buying and selling of energy.