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The importance of promoting mining for the benefit of NZers

27 January 2020 (Wellington): Public policy think tank The New Zealand Initiative opposes changing the purpose of the Crown Minerals Act from the promotion of mining for the benefit of New Zealanders.

In our submission on the Ministry of Business, Innovation and Employment’s discussion document: Review of the Crown Minerals Act 1991, the Initiative addresses questions raised about the role and purpose of the Crown Minerals Act (CMA).

The Initiative believes contrary to what is proposed in the discussion document, the word “promote” should be retained. Nor should the over-arching concept of “benefit of New Zealanders” be replaced by narrower, more partial terms.

“New Zealanders do not benefit from minerals that are never mined. They will not be mined efficiently unless the government promotes competitive tenders for their development. Not to promote competition invites waste and cronyism,” says Dr Bryce Wilkinson, Senior Fellow at the Initiative.

The Initiative has previously published research on the mineral estate and the regulatory landscape that surrounds it. One recommendation from our report, From red tape to green gold (2015), said if the rules are clear and efficient, environmental protections high and the activity respectful, there can be no rational basis to object to efforts to increase mining activities.

You can read our submission to the Ministry of Business, Innovation and Employment on the Review of the Crown Minerals Act 1991, here.

Read:
Poverty of Wealth: Why minerals need to be part of the rural economy (December 2014)
From red tape to green gold (March 2015)

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