Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search


Ensuring communities get a slice of the growing pie

Councils want to work with Government to ensure communities get a slice of the growing pie

14 November, 2012

The local government sector wants to work with the Government to ensure affected communities around the country can directly benefit from growing oil, gas and minerals royalties says Local Government New Zealand.

LGNZ recognises and supports the Government’s aim to grow the economy, and the work of the extraction industries is an important aspect of this.

Presently, royalties for petroleum and minerals extraction are paid to a consolidated Government fund. LGNZ is advocating a proportion of the royalties be channelled to affected communities via local and regional councils.

LGNZ this afternoon spoke to its submission on the Crown Minerals (Permitting and Crown Land) Bill to Parliament’s Commerce Select Committee. LGNZ agrees with much of the content of the Bill but says some changes are needed to help communities share in the benefit of petroleum and mining activity and for the costs of the extra infrastructure local authorities must fund to be fairly met. At present, the extra infrastructure costs fall to ratepayers. A more inclusive approach would greatly aid community support for mining activity.

LGNZ President, Lawrence Yule, says the massive ups and downs associated with extractive industries mean a community’s infrastructure is typically put under great strain during a boom period. On the other hand, it’s challenging to maintain that infrastructure – such as roads, wastewater and water treatment – to support other economic activities when mining and petroleum extraction is scaled down.

“LGNZ supports properly regulated petroleum and minerals extraction, but the nature of the related industries and the fluctuation in commodity prices is such that communities are likely to experience massive ups and downs, which both bring their challenges. This can lead to problematic ‘drive in, drive out’ based economic growth.

“We want to talk with the government about how we can ensure local people and local economies, which are an essential part of the fabric of this country, are given a fair deal, and benefit directly and that fair costs are met related to work of this sort in communities’ back yards,” says Hon Harry Duynhoven, Mayor of New Plymouth District Council.

At present, councils are not legally entitled to strike rates on land owned by the Crown. If it is private land, rates are payable by petroleum and minerals extraction companies. On the West Coast, for example, where much of the extraction industry is located on Crown Land, private companies operating on that Crown Land currently don’t pay rates but private companies down the road on private land pay their share.


© 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