Crown Minerals Act review needs more work

Crown Minerals Act review needs more work - Straterra

The Government’s objectives for the review of the Crown minerals regime are sound but will require more work to achieve them, Straterra says.

Chris Baker, chief executive of the body representing the New Zealand resource sector, was commenting today on Straterra’s submission to “Reviewing the Crown Minerals Act 1991: Discussion Paper”. Submissions on the paper close today.

“The Government’s desire to promote the development of New Zealand’s resources is welcome, as is consultation with the public on its proposals. There are a number of issues of concern to the resource sector, however, and Straterra would welcome being part of any further work to achieve the outcomes the Government is seeking.”

“It goes without saying that the prospecting, exploration and development of resources must be done in an environmentally-responsible way, and all of our comments must be seen in this light.”

“The Government has said it wishes to increase attractiveness for investment in the resource sector. The proposed purpose statement for the Crown Minerals Act should specifically include this objective.”

“Many of the proposed changes seem aimed at the petroleum sector. Straterra proposes the Government develop fit-for-purpose legislation for petroleum, and focus the review of the Act on other minerals. This would make it easier to develop good outcomes for the resource sector as a whole, and for New Zealand.”

“There are a number of other issues we are keen to discuss with the Government, including consideration of geothermal resources. Australia is investing around $1 billion in geothermal research, while New Zealand is investing less than 1 percent of that figure in this area. Yet we have far greater potential than Australia.

“The lack of property rights to geothermal resources in New Zealand, compared to the situation in Australia, may be a determining factor for this imbalance. The Institute of Geological and Nuclear Sciences has argued geothermal development in New Zealand could triple in the next decade but this would depend on having the right incentives framework in place. Geothermal resources are currently covered under the Resource Management Act, however, this does not adequately address the issue of property rights.”

“The resource sector can and needs to make a much bigger contribution to our standard of living in New Zealand and this review, and the associated consultation, are important steps in our realisation of that contribution.”
www.straterra.co.nz/Straterra’s+Submissions/

ENDS

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