Hon Dr Nick Smith
Minister for the Environment
13 February 2011
Speech

First Reading - Exclusive Economic Zone and Continental Shelf (Environmental Effects) Bill

Mr Speaker, I move that the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Bill be now read a first time.

I intend to move that the Bill be referred to the Local Government and Environment Committee.

Mr Speaker, this Bill is an integral part of the Government's bluegreen programme to strengthen New Zealand's environmental and resource management systems.

This significant Bill puts in place a system of environmental protection for the ocean beyond the 12-Mile Territorial Sea covering the 400 million hectares in the Exclusive Economic Zone and the 170 million hectares in the Extended Continental Shelf.

This Bill recognises the opportunities and responsibilities that go with being a globally significant maritime nation. The ocean area over which we have jurisdiction is 20 times our land mass and the fourth largest of any nation.

The Bill also recognises that our ocean resources are coming under increased development pressure from a growing global population, depletion of resources on land, and advances in technology that are making ocean resources more accessible.

Can I acknowledge the support of the Maori, ACT, United Future and Green parties for this important Bill.

National proposed this reform from Opposition as part of our bluegreen agenda of reforms.

We have refined those proposals with the advice of officials. We sought further independent advice after the Gulf of Mexico disaster to ensure we were putting in place the best system possible of environmental protection.

This legislation will manage the adverse environmental effects of activities in the EEZ that are unregulated. This includes the construction of petroleum platforms, seabed mining, aquaculture structures, carbon capture and storage, marine farming and energy generation structures.

The legislation will do this by providing a regulatory framework, similar to the RMA, for classifying certain activities as permitted, discretionary, or prohibited. This classification will depend on the effects an activity causes.

The consenting functions will rest with the recently established standalone Environmental Protection Authority.

For discretionary activities consent will be needed. All such applications would be publicly notified and will require an environmental impact assessment and take account of the receiving environment and cumulative effects of activities.

We are also providing a mechanism for effectively dealing with consents that straddle the Exclusive Economic Zone and the territorial sea.

This new legislation will not duplicate the existing regulatory processes for fishing under the Fisheries Act or shipping under the Maritime Transport Act.

It has also been carefully designed so as to ensure it is consistent with New Zealand’s international obligations.

There will be a transitional period once the Bill becomes law. The Government will require those already undertaking discretionary activities in the EEZ or ECS to apply to the EPA within six months of the legislation coming into force and they may continue their activities until a consent application is decided.

Existing oil and gas installations and associated infrastructure will be exempt on the basis that they are already operational. Existing licenses for mineral prospecting will also be exempt on the basis that the licenses contain environmental conditions.

There of course will be an intervening period as this Bill travels through the legislative process and comes into effect in 2012.

That is why the Government is also putting in place interim measures to ensure a smooth transition to the new regime.

Environmental impact assessments will be undertaken and submitted to the EPA for oil and gas drilling operations. Operators will be asked to comply with the latest beefed up drilling safety rules developed in the United States following the inquiries into the Gulf of Mexico disaster.

These measures complement the recent announcement by the Minister of Labour on the establishment of a High Hazards Unit with four inspectors specifically for the petroleum industry.

The Minister of Transport is also reviewing the liability insurance requirements for the industry and is looking to raise it above the current level of NZ$30 million.

Some have advocated that we should just extend the RMA out beyond the 12-mile Territorial Sea. This would be cumbersome and require an extensive planning regime out of proportion to the likely number of activities.

Others have questioned the consenting role that will be under the Environmental Protection Authority and want it to rest with regional councils. This role requires highly specialist skills and it would be unnecessarily expensive to duplicate them in every region.

The Government views New Zealand’s clean, green brand as important. It does not mean in our ocean environment that we should ban everything, anymore than we do in our land environment. It does mean ensuring we have world’s best practise environmental standards and systems and that is what this bill introduces.

Mr Speaker, this Bill is consistent with the Government’s policy agenda that supports growing the economy while protecting the environment.

I want to acknowledge that groups like the Environmental Defence Society and the Petroleum Exploration and Production Association have welcomed this move as they know it will provide environmental protection as well as certainty of process for those looking to develop the largely unrealised potential that lies in our EEZ and ECS.

It will help to manage the adverse effects on the environment while allowing for sensible development and community engagement in decision making.

New Zealand has been aware of the need for this legislation for a long time and this Bill represents the culmination of years of work. If we do not act now we risk harm to the marine environment and creates a reputational risk for our country’s standing in the international community.

This Bill is part of the wider body of bluegreen reforms already instigated by this Government to ensure we have a world-class environmental management system.

The time for a robust environmental management regime of our vast oceans has come.

Mr Speaker, I commend this Bill to the House.

ENDS

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