How the energy industry can boost Government鈥檚 economic plans
Careful changes to regulations could help New Zealand鈥檚 oil and gas industry earn increased royalties for the Government and aid the rebuild of our economy, according to the Petroleum Exploration and Production Association of New Zealand (PEPANZ).
鈥淲ith the Government鈥檚 focus on rebuilding the economy in this year鈥檚 Budget, our industry can play a major role if we have the right settings,鈥� says PEPANZ Chief Executive John Carnegie.
鈥淥ur industry earns the Government on average around $600 million in taxes and royalties per year. There is real potential to grow this and help ease the pressure on the Government鈥檚 finances.
鈥淲e鈥檙e proposing some regulatory changes that would achieve this by producing聽more of our own domestic energy.鈥�
These could include:
- An enabling regime for carbon capture storage technology to be used in New Zealand
- RMA reform that doesn鈥檛 expand the role of local councils into assessing the climate change implications of projects (this should remain the role of central Government)
- Flexibility for existing exploration and production permits聽
- Workable rules for new decommissioning requirements
鈥淭he energy our sector produces will be vital to powering the export industries that will lead our recovery, such as food production. We think it makes sense for this energy to be New Zealand made.鈥�