27 September 2018

Megan Woods is showing a shameful abuse of process by rushing through a Bill to ban new offshore oil and gas exploration that is bad for the economy and does nothing for climate change, National’s Energy and Resources spokesperson Jonathan Young says.

“Having announced the ban in February, Woods ran out of time to meet her legislative obligations as Energy Minister. The oil and gas industry may not see Block Offer 2018 this year and is likely to reject an offer that comes from an undemocratic process.

“The uncertainty is already scaring off massive investment. A sector that contributes $2.5 billion a year to New Zealand’s GDP is outraged over the way it has been treated. PEPANZ calls the rushed legislation ‘an undemocratic disgrace’ that came with ‘a shocking lack of consultation’.

“Woods will probably dismiss those views as self-interest from energy companies but she’d be wrong. PEPANZ speaks for stakeholders in the energy sector and the wider New Zealand economy including our biggest law and accounting firms, and engineers along with oil and gas companies.

“She will be hoping for a quick passage through the Environment select committee for the Crown Minerals (Petroleum) Amendment Bill, having cut consultation down to just four weeks.

“That committee hasn’t handled Crown Minerals legislation before. All previous Crown Minerals amendment bills have gone before the Economic Development Select Committee. Indeed Woods reports to the Economic Development committee in her capacity as Minister of Energy and Resources.

“But the greater concern is that the committee is chaired by Labour backbench MP Deborah Russell, a vocal opponent of the oil and gas industry. PEPANZ cited her ‘outrageous comments’ when the Bill was debated under urgency and she is unlikely to give industry a fair hearing.

“The industry has got it dead right in saying the whole process ‘has been a disgrace with no warning, no consultation and the Government trashing their own expert advice on the devastating impacts of this policy.’

“The next National Government would repeal this politically driven ban and restore certainty to a vital industry that has very long investment cycles and can’t be shut out of the conversation about New Zealand’s future energy needs.”

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