logo
Future of ORC now under scrutiny

Future of ORC now under scrutiny

The much maligned Otago Regional Council (and for justifiable reasons) has now attracted the attention of Shane Jones, the Minister for Regional Development and Minister for Resources, and for justifiable reasons.
After 35 years of existence regional councils have not delivered the promise of balanced environmental and productive outcomes.
One of the many problems is the institutionalisation of long-standing councillors which also needs the minister's attention but not through any internal local government review.
Here's why a totally independent review is crucial. Please read on as here is yet another horror story about to unfold.
During the 1930s at St Bathans, the Falls Dam was built to supply water for gold mining, irrigation and to supplement the Manuherikia River.
Water races were built to bring water to Omakau and the parched land on the way to enable the growing of crops that could only grow in this area with the addition of water.
The wise people in Wellington said, we will give you a right to take and use this captured water forever, so as to benefit us all by growing food.
This was widely seen as a great idea at the time by the entire populous. Mercifully, environmentalists hadn't been invented at that time.
Irrigatable land was allocated a certain amount of water and with a right to use. In times of drought , those with "prior right ranking" retained the right to take and use this captured water.
It was widely reported that even back then, water for the river was always seen as a first priority.
All was fine until the Resource Management Act (RMA ) came into being in 1989 and extinguished all water rights — even to this captured water.
Regional councils had a 30-year lead-in period to prepare for this massive change.
Meantime the Falls Dam structure — along with other dams in the area and built around the same time, were quietly sold to the water users by the government of the day for a peppercorn.
The government clearly had reports on the deteriorating condition of the dams, so they knew the dams were a contingent liability.
The dams would need replacing so they happily sold the dams to the water users but not necessarily with the water right to fill the dams. That would require a process led by the regional council, with its urban-based majority.
The council then allowed a water "permit" to be issued to water users but with a renewal demand from the regional council every six years.
Meantime the dam became increasingly in need of replacement and $100million to do so.
The Dangerous Dams legislation was passed some years ago, which forces the dam owners and water users to replace the dam.
So, where will the money come from?
Question: who would invest one New Zealand dollar in this rebuild if the environmental lobby (who will contribute even less) can control the flows from the dam — as they do through an urban majority on the ORC?
This is only one reason why Mr Jones is worthy of unstinted praise for his commentary on a failed system called regional councils.
Regretfully, the ORC is controlled by a majority of councillors who still believe we can build hospitals without productivity in all its many forms.
Recently, a staff report on the area to where the Macraes gold mine wishes to expand, identified a number of rare and or endangered invertebrates in the same area, so the competing interests are at loggerheads.
The gold mine, of course, is a successful commercial enterprise offering 600 jobs and contributing to the wellbeing of our region and indeed New Zealand.
The ORC is a not-for-profit organisation which feels compelled to save everything that crawls, hops, skips, flies and swims — albeit in smallish numbers — and which simply cannot be moved to a safer spot.
We humans can easily be repatriated but apparently insects don't or can't — at least according to the ORC.
There surely must be a tradeoff to be had.
Now, the great irony is that there is increasing noise around the repatriation of the ORC itself — out of existence or to an area known as a unitary council. This has happened further north and with some success. A small complicating factor could be — what to do with the ORCs brand new $60-plus-million headquarters.
One unkind thought would be to turn the building into a insectarium which is safe haven for any and all endangered species — excluding ORC councillors and staff.
On second thoughts maybe a place could be found for them as well.
■Gerrard Eckhoff is a former Otago regional councillor and Act New Zealand MP.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Geothermal Strategy can be catalyst for transformational change
Geothermal Strategy can be catalyst for transformational change

Newsroom

time4 hours ago

  • Newsroom

Geothermal Strategy can be catalyst for transformational change

Opinion: The launch of the Government's draft Geothermal Strategy, 'From the Ground Up – a draft strategy to unlock New Zealand's geothermal potential', a first for our country, is a watershed moment. It signals that geothermal energy is no longer the quiet achiever in our energy system – the revived focus on its potential recognises that geothermal can be central to our national vision for a sustainable, resilient, and economically empowered future. We have worked in the geothermal sector with engineers, scientists, Māori trusts, and industry leaders for decades, here and globally, and it's clear his strategy is welcomed with enthusiasm and optimism. The direction is right. The language is ambitious. And the need is urgent. At the Geothermal Institute at the University of Auckland, we see this as more than a policy milestone – it's a long-awaited catalyst for transformational change. Hearing Ministers Shane Jones, Louise Upston and Shane Reti tell it, educating our young people and providing compelling career opportunities in geothermal needs to be at the heart of it. The importance of signals One of the most powerful aspects of the strategy is what it signals: that geothermal matters. That it has a future that can rival its storied past. That government sees the long-term opportunity and is willing to put its weight behind it. That's no small thing. As any developer or technology innovator will tell you, long-term certainty is the foundation of long-term investment. This strategy builds on tangible commitments already made – particularly in the Government's investment to accelerate research-backed supercritical geothermal technology development. This technology aims to harness extremely high-temperature fluids from deep underground to generate renewable energy more efficiently than conventional geothermal technology. That backing will keep New Zealand at the forefront of technology to tap ultra-hot geothermal fluids to produce radically more energy per well. This is complex science and engineering with high stakes and high rewards. If we get this right, we not only unlock more clean energy, but also more industrial process heat, more energy-dense sites, and more export opportunities for our solidified globally leading expertise. The ripple effects for regional economic development are significant: the creation of highly skilled, highly paid jobs in engineering, geoscience, subsurface modelling, advanced manufacturing and programme and environmental management in regions including Taupō, Kawerau and Rotorua, from Northland to the Central Volcanic Plateau. The students at the Geothermal Institute will be the first to tell you: these are real jobs that future-proof careers and bolster local economies. From field to frontier – the role of innovation, research and education Geothermal is a mature sector, but it's also a frontier sector. What struck me at the New Zealand Geothermal Week in Taupō this year wasn't just the technical excellence on display, but the dynamism. I had conversations with rangatahi curious about career pathways, with iwi-led developers eyeing up direct heat projects, with engineering consultants pitching AI-assisted reservoir models, and with international visitors in awe of the collaborative NZ Inc spirit in the room. Future skills were a strong emerging theme throughout, where the message was loud and clear: the sector is hungry for talent, and young people are hungry for purpose. We need to meet them in the middle – with curriculum pathways, internship pipelines, scholarships targeting local communities and a long-term commitment to Stem education throughout the education value chain. But building a globally competitive innovation pipeline requires sustained support. Training world-class geoscientists and engineers doesn't happen overnight. It needs the right investment and long-term partnerships. And to meet the Government's ambition to double geothermal energy use by 2040 will require scaling up education and training. That's why the strategy's success will ultimately rest not only on the high-level vision of geothermal growth, but also what sits behind it to fuel that growth. Reinforcing New Zealand's global leadership New Zealand already enjoys a stellar reputation in geothermal internationally. Our engineers and consultants are in demand in Southeast Asia, East Africa, North America, Latin America, the Pacific, Europe and beyond. Our training programmes and postgraduate education programmes have produced alumni who now lead geothermal policy development, regulation, production and scientific research on every continent. This strategy, if paired with smart investment and coordinated delivery, could elevate that leadership to the next level. We could be the first country to commercialise supercritical geothermal knowhow. We could be the global centre for geothermal workforce training, standards and certification. We could supercharge the export of integrated geothermal solutions, from power plant designs and drilling capability to stakeholder partnering frameworks, carbon capture innovations, critical minerals extraction, cutting-edge digital modelling and real-time assessment tools, and more. This is the soft power of geothermal – and it's rooted in decades of practical excellence, technical ingenuity, and manaakitanga. A call to action The Government's draft Geothermal Strategy establishes a clear framework for the growth of geothermal. At the launch this week, ministers set a challenge for our geothermal community to turn it into a bold, coherent vision for the future. The geothermal sector is ready – meeting challenges is what we do.

Last-minute change puts oil and gas cleanup decisions in ministers' hands
Last-minute change puts oil and gas cleanup decisions in ministers' hands

1News

time21 hours ago

  • 1News

Last-minute change puts oil and gas cleanup decisions in ministers' hands

The government is set to repeal the oil and gas ban this week, after a significant 11th-hour change handing discretionary powers to two ministers. A 25-page amendment was published at 5pm on Monday, leaving opposition MPs less than 23 hours to prepare for the debate. The change largely deals with the rules for decommissioning oil and gas fields, and who is responsible for paying for the cleanup. Taranaki's Tui oil field was abandoned in 2019 after its Malaysian owner Tamarind Taranaki went bust, costing taxpayers a total $293 million to clean up, with work concluding just last month. The government initially set aside up to $343.4m for the project. The Labour government in 2021 introduced a law to prevent the government being lumped with such costs again in future. ADVERTISEMENT Resources Minister Shane Jones has vowed to restart the oil and gas industry. He said the aim of the amendment was to close a loophole in that 2021 law. "It did not seem correct or moral that the Crown should be left with that liability and the people [at fault] - with some very shrewd manoeuverings of script - would escape liability. We have solved that problem," he told the House. The changes replace the process of going through the list of previous permit-holders to figure out who pays for decommissioning, instead putting that decision in the hands of the Resources Minister and the Finance Minister. The morning's headlines in 90 seconds, including UK set to recognise Palestine, fire closes another Auckland supermarket, and Australia's plan to clamp down on YouTube access. (Source: 1News) The amendment also removes several clauses from a previous amendment the minister made to the bill, which itself amends the Crown Minerals Act. Labour's Energy and Resources spokesperson Megan Woods led the 2021 law change in response to the Tui Oil Field debacle, and told the Parliament the changes showed the government capitulating to the industry's wishes. ADVERTISEMENT "They have bowed to the suggestions of the oil and gas companies and done what they wanted. They have further bowed to the interests of the oil and gas companies in taking eight months to sit with them, find out what they wanted and then bring a bill back to the House. This is not a government that is putting New Zealand first." Labour's Deborah Russell pointed out the Regulatory Impact Statement referred to consultation with affected stakeholders. pointed out the Regulatory Impact Statement referred to consultation with (Source: 1News) "Those consulted preferred ministerial discretion to the current act and approach in the bill. In other words, these shadowy participants in the oil and gas industry - a dying industry - who we don't know who they are, much prefer to be able to lobby a minister." Jones was unapologetic about those he consulted with. "Why would you not engage with the stakeholders, the risk-takers, the providers of what precious little gas we have, ruined by the cancel culture." He was unapologetic about a lack of consultation with others, including iwi. ADVERTISEMENT "So in the future the engagement will happen. This highly technical matter was not the subject of consultation in a detailed way, it was dealt with with a great deal of confidentiality. And in terms of providing a Māori dimension, I interviewed myself." The amendment passed with the coalition parties in support, with the opposition parties opposed. The third reading, which would see the oil and gas ban repealed, is expected on Thursday. A gas company warned investors would be cautious about coming back to New Zealand without broad political consensus - and with the opposition parties currently staunchly opposed that consensus seems vanishingly unlikely. The government also has a $200m fund set aside in this year's Budget to allow the government to co-invest in new gas fields. It last month pulled out of the Beyond Oil and Gas Alliance, an international coalition for phasing out fossil fuels, in a move the local World Wildlife Fund called an "international embarrassment". That was despite the Climate Minister, Simon Watts, previously saying New Zealand would not need to exit the group.

Oil and gas ban repeal: Ministers get power over decommissioning costs
Oil and gas ban repeal: Ministers get power over decommissioning costs

NZ Herald

timea day ago

  • NZ Herald

Oil and gas ban repeal: Ministers get power over decommissioning costs

The Labour Government in 2021 introduced a law to prevent the Government being lumped with such costs again in future. Resources Minister Shane Jones has vowed to restart the oil and gas industry. He said the aim of the amendment was to close a loophole in that 2021 law. 'It did not seem correct or moral that the Crown should be left with that liability and the people [at fault] – with some very shrewd manoeuverings of script – would escape liability. We have solved that problem,' he told the House. The amendment addresses decommissioning responsibilities, following the costly Tui oil field cleanup. Photo / Supplied The changes replace the process of going through the list of previous permit-holders to figure out who pays for decommissioning, instead putting that decision in the hands of the Resources Minister and the Finance Minister. The amendment also removes several clauses from a previous amendment the minister made to the bill, which itself amends the Crown Minerals Act. Labour's Energy and Resources spokeswoman Megan Woods led the 2021 law change in response to the Tui Oil Field debacle, and told Parliament the changes showed the Government capitulating to the industry's wishes. 'They have bowed to the suggestions of the oil and gas companies and done what they wanted. They have further bowed to the interests of the oil and gas companies in taking eight months to sit with them, find out what they wanted, and then bring a bill back to the House. This is not a government that is putting New Zealand first.' Labour's Deborah Russell pointed out the Regulatory Impact Statement referred to consultation with affected stakeholders. 'Those consulted preferred ministerial discretion to the current act and approach in the bill. In other words, these shadowy participants in the oil and gas industry – a dying industry – who we don't know who they are, much prefer to be able to lobby a minister.' Labour MP Deborah Russell. Photo / Mark Mitchell Jones was unapologetic about those he consulted with. 'Why would you not engage with the stakeholders, the risk-takers, the providers of what precious little gas we have, ruined by the cancel culture.' He was unapologetic about a lack of consultation with others, including iwi. 'So in the future, the engagement will happen. This highly technical matter was not the subject of consultation in a detailed way, it was dealt with with a great deal of confidentiality. And in terms of providing a Māori dimension, I interviewed myself.' The amendment passed with the coalition parties in support, with the opposition parties opposed. The third reading, which would see the oil and gas ban repealed, is expected on Thursday. A gas company warned investors would be cautious about coming back to New Zealand without broad political consensus – and with the opposition parties currently staunchly opposed that consensus seems vanishingly unlikely. The Government also has a $200m fund set aside in this year's Budget to allow the Government to co-invest in new gas fields. It last month pulled out of the Beyond Oil and Gas Alliance, an international coalition for phasing out fossil fuels, in a move the local World Wildlife Fund called an 'international embarrassment'. That was despite the Climate Minister, Simon Watts, previously saying New Zealand would not need to exit the group.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store