Oil and gas ban repeal: Ministers get power over decommissioning costs
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.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
RNZ News
17 minutes ago
- RNZ News
Allegations Maori have been removed from Maori roll
Te Pati Maori said they have filed urgent proceedings in the High Court after allegations Maori have been removed or shifted off the Maori roll without their consent. A number of voters have posted online to say their electoral enrolment details have been altered or are not there at all. It comes on the eve of local election enrolment cutoff and ahead of sweeping electoral changes promised by the government. To embed this content on your own webpage, cut and paste the following: See terms of use.
Scoop
2 hours ago
- Scoop
Federated Farmers Back Government Health & Safety Review
Federated Farmers is backing moves to review health and safety rules for farmers, saying it's unfortunate some seem to have completely misunderstood the Minister's announcement. "Taking a closer look at these rules is really important, so it's disappointing a lot of people have gotten the wrong end of the stick," Federated Farmers president Wayne Langford says. "The Government aren't trying to add layers of bureaucracy or wrap farm kids up in cotton wool. They're actually trying to do the exact opposite of what's been portrayed in the media so far. "This is all about making sure health and safety rules are practical, common sense, and easy to understand - and Federated Farmers absolutely welcome that conversation." Langford says the current health and safety rules for farmers have gone way too far and are unnecessarily confusing for smaller family-owned farming operations. "We're talking about small mum and dad type businesses which might only employ one or two staff members. They're certainly not big corporates with a health and safety manager on staff. "They're hands-on farmers who actually spend their days farming rather than sitting in an office. That's why it's so important these rules are practical and easy to understand." He says confusion about health and safety obligations has meant some farmers no longer allow children on the farm like they would have in the past, for fear of falling foul of the law. "There's something very special about growing up on a farm and having that classic rural childhood many farmers enjoyed themselves," Langford says. "That's the childhood I had, and my own kids have had something similar, but I think we're at risk of losing that kind of upbringing if we don't get these rules right." Langford says preserving that traditional rural Kiwi upbringing, while still keeping kids safe, is exactly what Minister Brooke van Velden is trying to achieve. "I think it's unfortunate the Minister's examples were things like collecting eggs and watering plants - because that's not really what we're talking about here. "The fact those are the talking points the Minister was provided with by bureaucrats tells you everything you need to know about why we need to get Wellington out of farming. "In reality, we're talking about things like feeding calves, shifting stock, or helping mum and dad hose down the shed after milking - perfectly safe everyday farming activities." Federated Farmers 100% backs what the Minister has announced and look forward to engaging in the consultation process.
Scoop
3 hours ago
- Scoop
New Low From Govt In Public Service Act Changes Aimed At Ending Long Term Planning, Diversity & Inclusion & Pay Equity
The Government's proposed changes to the Public Service Act, to be debated in Parliament today, aim to strip away key provisions that ensure fairness, equality and long-term planning in the public sector. Under the proposed amendments, detailed in the Public Service Amendment Bill, diversity and inclusion, pay equity and long-term planning would be downgraded. "This is a new low from the Government. It now wants to tell chief executives of Government departments that they are not to focus on the long-term public interest, this is reckless given that the complex problems New Zealand's facing need long term policy solutions," said Fleur Fitzsimons, National Secretary for the Public Service Association Te Pūkenga Here Tikanga Mahi. "This approach will limit New Zealand's ability to solve complicated problems like climate change adaptation, family violence and our infrastructure deficit." The Public Service Amendment Bill also scraps requirements on pay equity. It would remove responsibilities for chief executives and the Public Service Commissioner to work towards pay equity between women and men, and to work towards eliminating bias and discrimination in decisions about pay. "Pay equity is about fairness and justice for workers and includes ensuring flexible and part time work is available. The Government has already ripped up pay equity claims, denying pay increases for more than150,000 women in the public and community sectors. Taking away its priority in this legislation again shows how little the Government values supporting the career of women and closing the gender pay gap." The Bill would also remove requirements on chief executives and the Public Service Commissioner to foster a public service that's inclusive and representative of the communities it serves. "Diversity and inclusion in our workforce are not nice to haves - they are essential to delivering fair and effective public services that are sensitive to the needs of all New Zealanders. The public service does its job well and is legitimate because it represents our diverse country. Reducing the importance of these principles risks turning back decades of progress." The PSA is also alarmed by amendments to the purpose of the Public Service Act which would reduce emphasis on pursuing the long-term public interest, and remove the requirement of the public service to enable both the current Government and successive governments to develop and implement their policies. "This is a worrying attack on the political neutrality of the public service and makes it less accountable to the people of New Zealand. Public services must look beyond the next political cycle. Downgrading the public service's role in pursuing the long-term public interest means less focus on how our public service can meet future challenges - whether that's dealing with an ageing population, infrastructure challenges, adapting to new technology, or responding to climate change. "The Government has stripped the public service of thousands of jobs despite our population growing, and our challenges becoming more complex and urgent. "The Bill was tabled on the same day the Government extended a tax break for big tobacco, showing how misplaced its priorities are. "This is a time to invest in a fairer, more future-focused public service - not tear down the progress we've made. It's 2025, not 1955." Note
