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

 


Communities should share in extraction royalties

Local government says communities should share in extraction royalties

Local Government New Zealand (LGNZ) has come out strongly seeking a policy change for the distribution of a share of royalties from mineral, oil and gas extraction to the communities where the activity takes place.

The Government receives hundreds of millions of dollars in royalty payments for oil, gas, coal and mineral extraction. In the five years to 2012, $1.69 billion was paid to the Crown in royalties from petroleum production and $49.85 million was paid in royalties from mineral production including coal.

LGNZ argues that the regions where the extraction occurs do not receive a direct share of these funds. Instead local authorities are required to pay for the local roads, services and amenities that enable extraction and support these industries, and to build a future for the region beyond the end of mining.

LGNZ President Lawrence Yule says local authorities also face environmental management costs for consenting, compliance, state of the environment monitoring and plan making.

“This is an important policy matter for our regions and their economies. The development of a ‘local share’ programme would support communities and regions, similar to the way the successful Royalties for Regions local share initiative in Western Australia has recognised the growth and pressure extractive industries place on a region.”

Hauraki District Mayor John Tregidga, chair of the LGNZ working party on royalties sharing, says that while mining and exploration creates jobs for communities, these industries have impacted Waikato by creating pressure on infrastructure.

“Royalty sharing would provide us with much-needed funding towards the additional infrastructure costs we face to support the presence of extraction industries, as well as the extra council staff time involved in compliance and consenting,” Mayor Tregidga says.

“This could increase further with new mining and exploration projects pending in Waikato. A local share programme would strengthen regional development for the benefit of our and other regional economies.”

“Investment in regions from royalties will also help the resilience of communities post mining. This is critical in boom and bust industries.”

Gisborne is another example of a community facing massive bills to upgrade its roads if oil and gas exploration proves successful in the region. TAG Oil is currently seeking to extract 14 billion barrels of oil from the East Coast Basin that would result in around $1400 billion in gross revenue and hundreds of millions in royalties.

“For the mining industry to be successful, Gisborne’s roads and bridges need to be updated and water tables improved – who will pay for that?” Gisborne Mayor Meng Foon says.

LGNZ is holding a forum ‘Royalty payments – the case for a local share’ today in Wellington to discuss the sharing of royalty payments with the local communities where extraction occurs.

*Ends*

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Patience: Drive Safe

Be patient before passing is the AA's message for drivers this Labour weekend.

"People taking crazy risks to get past other vehicles is one of the most dangerous things on the road,” says AA spokesperson Dylan Thomsen.

“The weather is looking good for the long weekend so the roads will be busy. Unfortunately, that also increases the chances of people getting frustrated and trying a risky passing manoeuvre. When they get past, there will probably be more traffic up ahead anyway so it won’t get people there faster.” More>>

 
 

Parliament Today:

Employment Relations Bill: Govt Strains To Get Tea Break Law Through

The Government has been left with egg on its face - failing to get its much-vaunted, but hugely unpopular, meal break law passed in the first week of its new term, Labour spokesperson on Labour Issues Andrew Little says. More>>

ALSO:

Guns: Police Association Call To Arm Police Full Time

"The new minister gave his view, that Police do not need to be armed, while standing on the forecourt of parliament. The dark irony was that the interview followed immediately after breaking news of a gunman running amok in the Canadian parliament in Ottawa..." More>>

ALSO:

Gordon Campbell: On The Tokenism Of New Zealand's Role Against Islamic State

Our contribution against IS will be to send SAS forces to train the Iraqis? That’s like offering trainers to General Custer just as the 7th cavalry reached the Little Big Horn. More>>

ALSO:

Scoop Business: Shell And Todd Caught Drilling Without Approval

Multi-national oil company Shell’s New Zealand arm and local energy giant Todd Energy have breached the new law governing New Zealand’s Exclusive Economic Zone, the Environmental Protection Authority says in an Oct. 10 document released by the Green Party. More>>

ALSO:

Gordon Campbell: On Pharmac, Gough Whitlam And Sleater-Kinney

We’re not at the outset of these negotiations. The outset was six years ago, and negotiators were hoping to have some sort of ‘framework’ deal finished in time for the APEC meeting in a few weeks’ time. These ‘extreme’ positions are what we’ve reached near the intended end of the negotiations… More>>

ALSO:

PM Of Many Hats: Questions, No Answers On Whale Oil

Dr RUSSEL NORMAN (Co-Leader – Green) to the Prime Minister: How many times since November 2008 has he spoken with blogger Cameron Slater on the phone and how many times, if any, has he texted him?
Rt Hon JOHN KEY (Prime Minister): None in my capacity as Prime Minister. More>>

ALSO:

Aussie Investigation Dropped: Call On Minister McCully To Pursue The Case Of Balibo Five

West Papua Action is deeply concerned at the lack of any clear outcome from the Australian Federal Police inquiry into the 1975 deaths of the ‘Balibo Five’ including NZ journalist Gary Cunningham. More>>

ALSO:

'Feed The Kids' Bill: Metiria Turei To Lead Fight On Feeding Hungry Children

Green Party Co-leader Metiria Turei is urging all political parties to support the Feed the Kids Bill which she inherited today from Mana leader Hone Harawira. More>>

ALSO:

Parliament Today: State Opening Of Parliament

The House sat at 10.30am on Tuesday before MPs were summoned to hear the Speech from the Throne in the Legislative Council Chamber. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news