Govt keen to get cracking on meeting NZ’s demand for energy – but first cabinet will wait for a report on gas options
Two items of interest to foreign-affairs buffs were released from the Beehive today.
Prime Minister Christopher Luxon will travel to Malaysia and the Republic of Korea next week, accompanied by a senior business delegation.
And his deputy, Foreign Affairs Minister Winston Peters, reminded us he is attending the Pacific Islands Forum Leaders meeting in Tonga by announcing the launch of a radar facility situated at the Fua’amotu Airport.
New Zealand funded the NZ$4 million radar pilot project in partnership with the Tonga Meteorological Service and New Zealand MetService. This is part of New Zealand’s $20 million support for the Weather Ready Pacific Programme.
But the big announcement today was pitched at electricity consumers who have been vexed by the energy shortage and sharply rising prices.
Energy Minister Simeon Brown and Resources Minister Shane Jones said cabinet has committed to:
New Zealand funded the NZ$4 million radar pilot project in partnership with the Tonga Meteorological Service and New Zealand MetService. This is part of New Zealand’s $20 million support for the Weather Ready Pacific Programme.
But the big announcement today was pitched at electricity consumers who have been vexed by the energy shortage and sharply rising prices.
Energy Minister Simeon Brown and Resources Minister Shane Jones said cabinet has committed to:
- Act with urgency to reverse the ban on offshore oil and gas exploration, with legislation passed by the end of 2024
- Remove regulatory barriers to the construction of critically needed facilities to import Liquefied Natural Gas (LNG) as a stop gap
- Ease restrictions on electricity lines companies owning generation
- Ensure access for gentailers to hydro contingency
- Improve electricity market regulation
When it comes to timing, the critical part of the statement said:
The Ministers will report back to Cabinet in October with options for mitigating sovereign risk in an LNG facility and domestic gas production.
Easing the way to increasing the supply of energy follows the announcement yesterday that Cabinet has agreed to recommend “a suite of sensible changes to the Fast-track Approvals Bill” to Parliament’s Environment Committee.
This won’t slow things down. The big change is that final decisions on which projects are fast-tracked will be taken out of the hands of cabinet ministers susceptible to dispensing favours.
Cabinet has agreed to recommend
- Projects will be referred to an expert panel by the Minister for Infrastructure alone, who will be required to consult the Minister for the Environment and other relevant portfolio Ministers as part of that referral process.
- Final decisions on projects will not sit with Ministers but with the expert panel. This is the same as the previous Labour government’s fast-track process.
- Expert panels will include expertise in environmental matters; will include an iwi authority representative only when required by Treaty settlements; and will include Māori development expertise in place of mātauranga Māori.
- Applicants will be required to include information on previous decisions by approving authorities, including previous court decisions, in their applications for the referring Minister to consider.
- Timeframes for comment at the referral and panel stages will be extended in order to give parties, including those impacted by a proposed project, more time to provide comments.
Latest from the Beehive
Cabinet has moved quickly to approve a raft of actions to address the serious risk to New Zealand’s energy security and affordability, Energy Minister Simeon Brown and Resources Minister Shane Jones say.
26 August 2024
Prime Minister Christopher Luxon will travel to Malaysia and the Republic of Korea (Korea) next week, accompanied by a senior business delegation.
A new weather radar for Tonga will help save lives through improved forecasting and early warnings for communities during hazardous weather events, says Deputy Prime Minister Winston Peters.
25 August 2024
Cabinet has agreed to recommend a suite of sensible changes to the Fast-track Approvals Bill, say RMA Reform Minister Chris Bishop and Regional Development Minister Shane Jones.
The media statement from Simeon Brown and Shane Jones acknowledged that New Zealand currently has an energy shortage.
“The lakes are low, the sun hasn’t been shining, the wind hasn’t been blowing, and we have an inadequate supply of natural gas to meet demand,” Mr Brown says.
“That has led to New Zealand currently having the highest wholesale electricity prices of any of the countries we normally compare ourselves to. It is devastating for our manufacturing and export sectors, and is sadly leading to firms reducing production or closing entirely.
“New Zealand needs abundant, affordable energy. That’s why the Coalition Government is taking a series of immediate actions to restore confidence to our energy sector and remove regulatory barriers that have stopped firms generating electricity or bringing in the fuel that Kiwis need.”
Natural gas production dropped by 12.5 per cent in 2023 and by a further 27.8 per cent for the first three months of this year, creating a nationwide shortage. This has resulted in reductions in manufacturing output, and electricity generators resorting to more coal and diesel to power our electricity system.
Shane Jones said New Zealand “is blessed with energy resources under our feet”.
Natural gas had drawn new industries to our shores, created well-paying jobs in our regions, and powered the producing, manufacturing, and exporting businesses that are the backbone of our economy, he said.
“It is critical for New Zealand that these keep going, but already some businesses are having to close their doors until energy prices come down; with hundreds of jobs at stake. That’s why we are taking urgent action to shore up our energy security.
“Oil and gas explorers need to have the confidence to invest here and know they will have a key place in New Zealand’s energy sector now and into the future.”
Announcing the Cabinet agreement to recommend changes to the Fast-track Approvals Bill, Chris Bishop and Shane Jones also released an overview of the 384 projects that have applied to be listed in the Bill.
“We’re delighted by the massive interest in our Fast-track process. New Zealand has a housing crisis, a massive infrastructure deficit, and very ambitious climate change targets. Fast-track will be a huge step forward toward addressing this trifecta of challenges for government and the private sector alike,” Mr Bishop says.
“For too long New Zealanders have had to put up with overly restrictive planning rules that stifle much-needed growth. The Coalition Government is cutting through the jumble of consenting processes so we can deliver new infrastructure up and down the country, grow our economy, and provide much needed new jobs for the regions.”
The positive feedback on the one-stop shop Fast-track Bill had confirmed that Kiwis want to see progress in their towns and cities and were sick of waiting years for it, Jones said.
“However, we have listened to the concerns of many submitters, some of whom have identified areas where the Bill can be changed to deliver a more robust and inclusive process.”
“High-level information” about the 384 projects that have applied to be listed in Schedule 2 of the Fast-track Approvals Bill show the spread of applicants, both in type and regionally.”
The applications received by the Independent Advisory Group are made up of:
- Housing and urban development projects: 40 per cent
- Infrastructure projects: 24 per cent
- Renewable energy projects:18 per cent
- Primary industries projects: 8 per cent
- Quarrying projects: 5 per cent
- Mining projects: 5 per cent
Cabinet will consider which of the projects will be listed in Schedule 2 of the Bill. They will then be included in a paper to be put before Parliament once the Fast-track Approvals Bill returns to the House later this year.
After the Bill is enacted, projects listed in Part A of Schedule 2 will be able to apply directly to an Expert Panel for final decision, as well as the application of any conditions.
Reaction to the announcement inevitably has been mixed.
These critical responses were recorded on the Scoop website –
Sunday, 25 August 2024, 8:04 pm | WWF-New Zealand
The changes are a step in the right direction but still don’t go far enough to halt the devastation this legislation will unleash on Aotearoa’s environment. More >>
Sunday, 25 August 2024, 5:34 pm | Forest And Bird
It is clear the government is feeling the pressure from the people of New Zealand. However, we must remain vigilant. We can’t afford to take our eyes off the ball yet, or we risk losing more of our unique natural heritage that defines us.
Sunday, 25 August 2024, 5:10 pm | ECO
The Bill still rides roughshod over the Conservation Act, the Reserves Act, the Environmental Protection Authority, Local and regional government standards, plans and consent provisions, and it suspends a host of other environmental protection measures. More >>
Sunday, 25 August 2024, 5:06 pm | Environmental Defence Society
The main problem with the Bill remains that the decision-making criteria are still heavily weighted in favour of development over the environment. Given the way the purpose clause is drafted, it’s hard to see any project being turned down, whether … More >>
Sunday, 25 August 2024, 5:04 pm | CAFT – Communities Against the Fast Track
CAFT questioned what drove the Cabinet to make these decisions, ahead of the Select Committee reporting the Bill back to Parliament. More >>
Sunday, 25 August 2024, 5:02 pm | Greenpeace
The key part of the Fast Track Bill remains in place after these changes – projects will still be assessed on purely economic criteria which totally override environmental criteria. More >>
Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton
1 comment:
Would like to hear comments about possibly nationalising the power generators. Who by the way once were.
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