Little: Feedback on oil exploration plans welcome
Andrew Little says the Labour Government still wants to hear feedback from those affected by its decision to end oil and gas exploration in New Zealand.
Prime Minister Jacinda Ardern announced on Thursday an end to all new permits for offshore oil exploration.
She also stopped permits for onshore exploration for all areas apart from Taranaki – although this will be reviewed in three years.
On Thursday night Little, a Labour List MP, held a public meeting at the Quality Hotel in New Plymouth to discuss the impact of the decision.
He told those assembled they had to admit the landscape was changing.
‘‘This region is already suffering in the oil and gas industry because of the downturn...Leaders of this community have been asking themselves what’s next for Taranaki,’’ he said.
‘‘The world is changing; consumer demand is changing.’’
But the decision on oil and gas did not affect a single job that is in existence today, he said.
‘‘This took people by surprise and I get that, but this is not about turning off the spigots tomorrow and shoving people out of work.
‘‘We are not in the business of strangling assets...We do need to send a 30, 40, 50-year signal of what the future holds.’’
But he said the announcement was a consultation, and the Government was keen to hear feedback on what was needed in the transition.
‘‘It is not a waste of your time...to come back and and say this is how it will affect us.
‘‘This is about working with you and the rest of the community on a sustainable future.’’
Arun Chaudhari, of the Taranaki Chamber of Commerce, told Little most businesses had a consensus of opinion. ‘‘This region wants to see climate change addressed; we just think it’s a premature decision without proper consultation,’’ he said.
Afterwards, Little said the meeting was ‘‘a good exchange’’.
‘‘I was personally surprised; a number of people said they were here to talk about alternative energy sources.’’
Director of Arete Consulting Len Houwers said the news was a concern for major employers Methanex and Ballance.
‘‘This announcement gives them no confidence that there’s a future for them here,’’ he said.
‘‘I still see a disconnect between what what the Government is trying to achieve how it’s going about it.’’
There are 31 oil and gas exploration permits currently active in New Zealand, 22 of which are offshore. Of the total, 27 are currently producing oil and gas.
The permits cover an area of 100,000 square kilometres. The last of the permits end in 2030, but if a discovery is made, production could continue for decades. All existing permits will be protected under the Government’s plans.
The fallout from the Government’s announcement continued yesterday.
The BusinessNZ Energy Council executive director John Carnegie said it would influence companies’ decisions.
‘‘The likely result will be no further investment or job growth in that part of the industry,’’ he said.
‘‘The ban could curtail oil and gas production even from existing fields and increase gas prices.’’
But not everyone disagreed with the Government’s plan. The Council of Trade Unions, Greenpeace, the Environment and Conservation Organisations of NZ, the Climate Change Research Institute and Te Runanga o Ngati Ruanui Trust all voiced their approval.
Greenpeace executive director, Dr Russel Norman, said the decision will give the country back its ‘‘clean, green mojo’’.
‘‘Globally, fossil fuels are becoming a risky investment. We’re seeing banks and other financial institutions actively reducing their exposure to them and increasing investment in clean energy, for purely financial reasons.’’
Te Runanga o Ngati Ruanui Trust said as the iwi most affected, it supported the Government’s decision.
Ngati Ruanui has experienced the largest number of both onshore and offshore oil well development in South Taranaki over the last 50 years, and the iwi has signalled for a long time the need for a longterm sustainable direction for oil and gas permitting, it said.