Local Govt | National News Video | Parliament Headlines | Politics Headlines | Search


Sharing mining royalties positive for councils, communities

21 March 2014


Sharing mining royalties positive for councils and communities

Local Government New Zealand (LGNZ) supports New Zealand First’s policy to share mineral mining royalties with local authorities, which is in line with LGNZ’s policy for royalties from all mining, oil and gas extraction to be shared for the benefit of local communities.

New Zealand First announced yesterday that it would deliver 25 per cent of mining royalties directly to a regional development fund to target development on the West Coast, where it is estimated that more than $80 million would have gone to regional development initiatives in the last year alone if this royalties sharing scheme had been in place.

LGNZ considers a proportion of the royalties from all mining activity should to be channelled to communities through their local and regional councils. Currently, royalties for petroleum and minerals extraction are paid to a consolidated central government fund which does not flow through to communities. Exacerbating this issue, councils are further disadvantaged because private companies operating on Crown Land do not pay rates. In some parts of the country this involves significant areas of land.

“LGNZ continues to advocate for royalties sharing from extraction. We are pleased to see this policy position from New Zealand First, which supports our goals of strengthening communities and driving economic growth across all of the country,” LGNZ President Lawrence Yule says.

“The royalties sharing would ensure local people and local economies benefit directly from petroleum and minerals extraction in their region. Importantly, royalties sharing would provide local authorities with funding towards additional infrastructure costs they face supporting the presence of extraction industries.”

Community infrastructure such as roads, wastewater and water treatment can be put under great strain during an extraction boom and infrastructure maintenance is challenged when extraction becomes scaled back.

Local authorities also face environmental management costs for extraction permits granted in their jurisdiction, including consenting, compliance, state of the environment monitoring and plan making. Some of these costs are not recoverable, making royalties sharing a necessary contribution.

LGNZ is keen to see this implemented as soon as possible to strengthen regional economic development for the benefit of communities.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines



Wellington.Scoop: Serco – First The Prisons, And Now It Wants To Run The Trains

As the government continues its inquiry into Serco’s discredited administration of Mt Eden prison in Auckland, here in Wellington there’s further scrutiny of the British outsourcing company – because it’s competing to take over the running of our commuter trains. More>>


Gordon Campbell: On The TPP Countdown, And Mary Margaret O’Hara

To date, the Key government has been unwilling to share any information about this TPP deal until it is too late for outraged public opinion to affect the outcome... the disclosure process is likely to consist of a similarly skewed and careful exercise in spin. More>>


Australia Deportations: English Relaxed On Immigration Centre Conditions

Labour's Annette King: “There have been numerous reports from inside these detention centres on just how bad conditions are... If they were being held in any other foreign jail, I imagine Mr English would be somewhat concerned. More>>


Schools: Achievement-Based Funding Would Be A Disaster

The Education Minister’s speech to the PPTA Conference raising the spectre of achievement data driving a new funding system would be disastrous, says NZEI Te Riu Roa. More>>

  • Video Out-Link - PPTA Annual Conference 2015 on Livestream (Q+A dicussion suggests funding would be directed to less successful schools.)

  • ALSO:

    ECE Report:

    Key In NY: Prime Minister Addresses United Nations

    Prime Minister John Key has addressed the United Nations General Assembly in New York, focusing on a call for action in Syria and on other conflicts, reform of the veto process and on the UN’s Sustainable Development Goals. More>>.


    Gordon Campbell: On The Lack Of Accountability Over Philip Smith

    In New Zealand, accountability is an exotic creature rarely glimpsed at ministerial level, or among senior management. The flight to Rio by the paedophile /murderer Philip John Smith/Traynor is no exception. More>>


    More On Corrections

    Get More From Scoop



    Search Scoop  
    Powered by Vodafone
    NZ independent news