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

Anzac Day:


Reshuffle: PM Announces Changes To Ministerial Portfolios

Prime Minister Bill English today announced the appointment of Gerry Brownlee as Minister of Foreign Affairs, Nathan Guy as Minister of Civil Defence, Nikki Kaye as Minister of Education and Mark Mitchell as Minister of Defence.

The changes follow the resignations from Cabinet of Hekia Parata and Murray McCully.

In other changes Simon Bridges has been appointed Leader of the House and Nicky Wagner has been made Minister supporting Greater Christchurch Regeneration. More>>

 

Q+A Transcript: CTU Call For 'National Standards' On Wages

‘If you look at countries who do better than us, who pay wages better, who have more competitive industries, more successful economies, they have systems where there are national standards.’ More>>

ALSO:

Health Workers Respond: People's Mental Health Report Released

The People's Mental Health Review reinforces a recent YesWeCare.nz survey of 6,000 health workers, which found nine in 10 believe they don't have the staff or resources to deliver the care Kiwis need when they need it. More>>

ALSO:

More Mental Health:

Energy: Greens Launch Plan For Cheaper And Cleaner Electricity

$112 million for winter warm-up payments to help low-income households cover their power bills • setting a goal for 100 percent renewable electricity by 2030 (in average hydrological conditions) • an investigation into the electricity wholesale market. More>>

ALSO:

Gordon Campbell: On The Aged-Care Settlement

Until yesterday, a National government has always been the sworn enemy of women seeking justice in the workplace, in the face of gender-based pay discrimination. More>>

ALSO:

Get More From Scoop

 

LATEST HEADLINES

 
 
 
 
 
 
 
 
Politics
Search Scoop  
 
 
Powered by Vodafone
NZ independent news