Sharechat Logo

Energy minister Megan Woods defends government's ban on offshore gas exploration

Thursday 14th June 2018

Text too small?

Energy and Resources Minister Megan Woods has defended the government’s decision not to issue new offshore oil and gas exploration permits despite it going against official advice, saying she didn’t think officials had taken into account the changing world we live in. 

At Parliament's economic development, science and innovation select committee this morning, National MPs pushed Woods on the block offer decision, which the opposition has described as economic vandalism and has said it would reverse the policy if it returns to power. 

Documents released under the Official Information Act have shown the Ministry of Business Innovation and Employment (MBIE) advised Woods to continue to allow oil and gas companies to apply for exploration permits, but to limit that to onshore and offshore Taranaki.

Woods told the select committee she didn’t agree with the official advice, as it was premised on production moving to China which “simply isn’t possible under the cap and trade system” which China has introduced. 

“If there was to be a move in production to China, that would have to be a substitution for emissions that are already being made. It wouldn’t be additional, so that argument doesn’t hold water.”

Woods said there hadn’t been a cost-benefit analysis on the decision because Treasury’s model wasn’t capable of considering “unknown unknowns” - the economic consequences of rejecting bids which have not yet been made. 

She also stressed that all three coalition partners had been involved in the decision. New Zealand First has faced criticism from its supporters over the decision, with concerns about what it will mean for the regional economies in affected areas, particularly Taranaki. 

Woods said the issue had been taken to the caucuses of the three individual parties, and “had a higher level of discussion around it” than most decisions. 

(BusinessDesk)

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

MARKET CLOSE: NZ shares rise after bumpy week, led by NZ Refining, Synlait while Port of Tauranga, A2 drop
NZ dollar heads for 0.7% weekly decline as trade jitters weigh on markets
Mining industry says no more projects the size of Te Kuha, but smaller ones waiting
Goodman Fielder seeks ComCom permission to buy Yoplait rights in NZ
RBNZ's Orr tipped to stand pat and could signal hikes might take even longer
Consistency across port reporting would boost transparency, deputy Auditor-General says
Fletcher's Ross says no change to B+I provisions, won't comment on delays in Chch airport hotel
SeaDragon auditor PwC struggles to find evidence supporting asset valuations; withholds opinion
Education Ministry's leaky school claim against Carter Holt about a year away
NZ may produce record volumes of milk this season, Rabobank says

IRG See IRG research reports