Calls to halt oil permits

Published: 10:41AM Friday February 10, 2012 Source: Fairfax

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  • Calls to halt oil permits  (Source: ONE News)
    The Rena from inside the exclusion zone - Source: ONE News

The Government should halt the awarding of the permits for oil and gas exploration until a law to protect New Zealand's seas is passed, Opposition parties say.

Officials yesterday announced a new system for allocating permits. Instead of "first in-first served", companies will tender competitively on an annual basis.

The "block offer" for 2012 will cover 25 onshore and offshore areas, totalling 40,285 square kilometres of seabed and 5704sqkm of land in Waikato, Taranaki, Tasman, the West Coast and Southland.

It came on the same day select committee MPs heard submissions on the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Bill.

Conservationists warned the bill is inconsistent with international law, puts "economic well-being" before the environment and won't serve in the event of an oil spill disaster.

Green Party oceans spokesman Gareth Hughes called on the Government to stop new exploration until the bill, which sets up a consents regime for offshore exploration, drilling, seabed mining, energy generation, marine farming and other exploitation of resources, passes.

The 2010 Deepwater Horizon disaster was a wake-up to the risks of oil-drilling. "But for Kiwis it is no longer academic," Hughes said. "After the Rena we can see it smell it, touch it. We've seen the impacts on the local economy and environment."

Profits would flow offshore and high-skilled jobs would be brought in from overseas, he said.

He slammed the "secretive process" which should be made more transparent.

"The Government should have put this on hold until the EEZ bill passed through Parliament. At the moment, these companies are bidding on areas where there is no regulatory regime and considerable doubts around Maritime NZ's preparedness to deal with an oil spill."

Labour's energy spokeswoman Moana Mackey said there were "grave concerns" about the "watered-down" legislation.

"Labour wants to see some best practice processes especially around liability and emergency response readiness introduced before any further exploration goes ahead."

The Government had been silent on "growing public concerns," she said.

Energy and Resources Minister Phil Heatley welcomed the new process as "an important step in developing New Zealand's significant resource wealth."

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