Jonathan Young - Energy and Resources

1 October 2018

The Prime Minister has revealed the Government’s real agenda is to choke growth in the oil and gas sector, showing disregard for an industry that employs thousands of hard-working New Zealanders, National’s Energy and Resources spokesperson Jonathan Young says.

“The Government shocked stakeholders in the oil and gas sector in April with the announcement there would be no new offshore exploration permits while those onshore in Taranaki would continue pending a review after three years.

“But she appears to have pre-judged that review, telling Q+A that ‘in terms of the future we’re not issuing any further permits’. It appears that in Jacinda Ardern’s mind, she is jumping to the endgame of cancelling all future permits.

“Whether she misspoke or genuinely believes a total ban is inevitable, it was a reckless comment from the Prime Minister about a sector that contributes $2.5 billion a year to GDP and provides essential energy for major industries, and heating and cooking fuel for households.

“Ms Ardern has highlighted the Government’s systemic disregard for New Zealand’s oil and gas industry, which the Productivity Commission says should be part of our response to climate change through innovation and advances in technology.

“She fails to appreciate that demand for natural gas will grow as nations currently using coal to generate power look to reduce their carbon emissions. Coal-fired power stations are still being built at a rapid pace in Asia and Africa.

“The Government has already scared off investment in the industry and her latest comments will only serve to underline the message that New Zealand is closed to overseas capital.

“It has ignored warnings from officials that the ban would potentially cost the economy some tens of billions of dollars, lead to job losses and higher energy costs and may actually increase global greenhouse gas emissions.

“Industry leaders tend to weigh their words because they know they have to get along with whatever Government is in power so it shows how badly the oil and gas industry have been treated that it calls the rushed Crown Minerals Amendment Bill ‘an undemocratic disgrace’ and ‘deeply unfair’.

“The next National Government will repeal these short-sighted moves, which appear to be driven by the political needs of the coalition rather than the future energy needs of New Zealand.”

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