Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Massive oil rig liability a ticking time bomb

21 March 2017

Massive oil rig liability a ticking time bomb

The Government faces a bill of up to $855 million over the next 25 years as New Zealand’s aging oil rigs come to the end of their life, the Green Party revealed today.

The Crown is liable for tax and royalty rebates equal to 42-48 percent of the total decommissioning cost for each of the five oil rigs in New Zealand waters, according to documents released to the Green Party under the Official Information Act. Energy and Resources Minister Judith Collins admitted in Parliament today that the total liability is estimated to be between $800 million and $855 million.

“This is a staggering amount of money that future taxpayers will have to provide to clean up after the oil industry has finished making its profits,” Green Party energy and resources spokesperson Gareth Hughes said.

“Government officials have warned the Minister that one of New Zealand’s aging oil rigs could be decommissioned soon, depending on the international oil price, and that comes at a huge cost to the government and the taxpayer.

“The Government often claims it is leading international work to phase out oil and gas subsidies, but now it’s planning for taxpayers to stump up the better part of a billion dollars to cover the oil industry’s backsides.

“We’ve got these aging oil rigs in our waters and it turns out not only do they carry the risk of an oil spill, they also carry a huge financial risk to taxpayers too.

“New Zealand has the fourth lowest tax and royalties level for oil exploration and production in the world. We can’t afford to be cleaning up after the oil industry too.

“The Minister said the industry has already covered the cost through the royalties it’s paid, but those royalties haven’t been ring-fenced so they’ve already been spent on other things,” Mr Hughes said.


© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Not Easy: Gordon Campbell On The Greens’ Ongoing Problems

Hard to treat the Greens’ belated decision to stand a candidate in Ohariu as being anything other than a desperation move, by a party whose own leadership is evidently concerned about its chances of survival...

A few months ago, the Greens felt able to forego that role in Ohariu in order to help a beleaguered Labour Party get its candidate Greg O’Connor across the line, and knock Peter Dunne out of the parliamentary frame. More>>

 

Gordon Campbell: On DHB Deficits And Free Trade

Currently the world is looking on aghast at the Trump administration’s plans to slash Obamacare, mainly in order to finance massive tax changes that will deliver most of their gains to the wealthy. Lives will be lost in the trade-off. Millions of Americans stand to lose access to the healthcare they need... More>>

Greens' Response: Slum-Like Rentals Exposed In Renting Review

“...The grim findings of the review are a wakeup call about the true state of rentals in this country. Too many renters are festering in slum-like conditions under the thumb of landlords who have largely unchecked powers and ignore tenants’ complaints when it suits them.” More>>

ALSO:

Gordon Campbell: On The Life And Times Of Peter Dunne

The unkind might talk of sinking ships, others could be more reminded of a loaded revolver left on the desk by his Cabinet colleagues as they closed the door behind them, now that the polls in Ohariu had confirmed he was no longer of much use to National. More>>

ALSO:

Gordon Campbell: On Labour’s Campaign Launch

One of the key motifs of Ardern’s speech was her repeated use of the phrase – “Now, what?” Cleverly, that looks like being Labour’s response to National’s ‘steady as it goes’ warning against not putting the economic ‘gains’ at risk. More>>

ALSO:

Lyndon Hood: Social Welfare, Explained

Speaking as someone who has seen better times and nowadays mostly operates by being really annoying and humiliating to deal with, I have some fellow feeling with the current system, so I’ll take this chance to set a few things straight.. More>>

ALSO:

Deregistered: Independent Board Decision On Family First

The Board considers that Family First has a purpose to promote its own particular views about marriage and the traditional family that cannot be determined to be for the public benefit in a way previously accepted as charitable... More>>

ALSO:

Transport Policies: Nats' New $10.5bn Roads Of National Significance

National is committing to the next generation of Roads of National Significance, National Party Transport Spokesperson Simon Bridges says. More>>

ALSO:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election