A bureaucratic structure set up by the Government is stopping Eastland Network from establishing a wind farm at a time when increased energy generation is crucial right throughout the country, says National energy spokesman Nick Smith.

National wants to see the regulations changed so that companies like Eastland Infrastructure can take what are logical and simple steps.

His comments came after a helicopter flight over a large part of the district and a meeting with Eastland Infrastructure officials.

There were some quite specific issues with respect to electricity supply that were highlighted.

"If there is to be increased timber processing in the region it is clear that there needs to be investment in electricity," said Mr Smith.

"The number one issue for Eastland Infrastructure is the bureaucratic barriers put in place to limit its proposed wind farm.

"It just seems to be ludicrous at a time when New Zealand is crying out for new generation, when the world is seeking generation that is renewable, that you have a landowner that wants wind farms on the property, you have a company that is prepared to put the money up and you have a government saying no."

The principle of monopoly line companies not cross-subsidising their generation was sound. The practice of it was impractical.

"You are simply killing investment," said Mr Smith.

"The bureaucratic structure that has been put in place by Labour through the Commerce Commission and the Electricity Commission is stopping a local company getting on and doing what everybody agrees is logical and simple.

"National wants to see the role of the Electricity Commission, the Commerce Commission and Transpower sorted out. We also want to see a review of the rules that allow for lines companies such as Eastland Infrastructure to be able to invest in generation.

"This is a critically important issue for Gisborne and the East Coast because there simply can not be economic development without increased generation.

"We do not want the situation that happened in Auckland where nobody wakes up to the problem until the lights go out."

The wind farm site was ideal. While you could never guarantee it, there did seem to be reasonable community support. It was proposed to produce 12 megawatts which was about 25 percent of the region’s needs.

It would only involve four turbines in a small corner of the region.

National was intrigued by the model that had been developed in Gisborne of an infrastructure entity covering the port and electricity.

It was a forerunner to the type of thinking that National had about the need for a Ministry of Infrastructure to make sure New Zealand has the roads, electricity network and other infrastructure elements to support a growing economy.

"What is being done in Gisborne is very innovative and National is interested in that for the broader development of policy for the country."

East Coast MP Anne Tolley had been "chewing his ear" about the issue and bringing it before caucus. The visit here was as a result of her concern.

He will be back in Gisborne when National launches its environment policy and will deal with some of the issues around the Kyoto Protocol and carbon credits for forestry. This will probably be in October.

Eastland Infrastructure chairman Arthur Muldoon said the discussions were constructive and he appreciated the National Party’s policy direction, which was supportive of the roading initiatives in the region. National had a complete infrastructure focus with its policy.