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

 

Parliament Today:

Werewolf: The Defence Pretence

Last year, the world began spending more money on weapons again, for the first time since 2011... New Zealand belongs to a region – Asia and Oceania – where military spending rose sharply in 2015, by 5.4 per cent. More>>

ALSO:

Gordon Campbell: On Not Crying Foul, Argentina

So a couple of guys found to be criminally liable of environmental pollution in Argentina lodge an application with the Overseas Investment Office… in order to buy some prime New Zealand rural land. Seems that their factory back home had carelessly and/or intentionally discharged toxic waste into the Lujan river. Bummer... More>>

ALSO:

Urban & Rural: $303m To Merge And Modernise New Zealand’s Fire Services

Internal Affairs Minister Peter Dunne today announced funding of $303 million over five years to combine urban and rural fire services into one organisation from mid-2017. More>>

ALSO:

High Trust Regime: What Did The PM Tell His Lawyer About Foreign Trusts?

The Government stopped the IRD from reviewing New Zealand foreign trusts shortly after the Prime Minister’s lawyer wrote to the Revenue Minister claiming John Key had promised him the regime would not be changed. More>>

ALSO:

Road Crime: Wicked Campers Vans Classified As Objectionable

The definition of publication includes any "thing that has printed or impressed upon it, or otherwise shown upon it, 1 or more (or a combination of 1 or more) images, representations, signs, statements, or words", The Classification Office has previously classified such 'things' as billboards, t-shirts, and even a drink can. This is the first time the Classification Office has classified a vehicle. More>>

ALSO:

'When New' Repairs: Landmark EQC Settlement

The Earthquake Commission has cut a deal with 98 Canterbury homeowners that affirms the government entity's responsibility to repair earthquake-damaged property to a 'when new' state, as well as covering repairs for undamaged parts of a property and clarifying its position on cash settlement calculations. More>>

ALSO:

Gordon Campbell: On Kiwirail’s Latest Stint In The Dogbox

The denigration of Kiwirail continues. The latest review (based on a 2014 assessment) of the options facing the company have enabled Kiwirail to be hung out to dry once again as a liability and burden on the taxpayer. More>>

ALSO:

Royal Society Report: Good Opportunities To Act Now On Climate Change

There are many actions New Zealand can and should take now to reduce the threat of climate change and transition to a low-carbon economy, a report released today by the Royal Society of New Zealand finds... More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news