Straterra's Submission - ETS Review

Introduction
1. Straterra Inc was formed in 2008 to be a collective voice for the New Zealand resource sector. Its membership represents 84% by value of New Zealand minerals production (excluding oil & gas, and geothermal), as well as exploration, research, service and support. Straterra works closely with the petroleum sector and has links to the geothermal sector.

2. The resource sector makes a significant contribution to the New Zealand economy. Oil, gas, coal, gold, aggregates and other minerals contributed $2.15 billion to GDP in 2008, compared to the wine industry ($0.45bn), and tourism ($6.66bn). Resource exports in 2009 earned $3.6bn (8.2% of total goods exports) while dairy in that year was $10.0bn, and overseas tourism, $9.3bn. In 2009 there were 6800 people employed directly in mining, and 8000, indirectly, flowing from the economic activity of the 6800. The median wage for a mining employee was $57,320 in 2008, compared to the New Zealand median of $33,530.

3. Minerals production (excluding oil & gas and geothermal) by value was close to $2 billion in 2009, divided between: coal ($710 million), gold and silver ($673m), aggregates ($425m), and ironsands ($163m).

4. Straterra welcomes the opportunity to submit to the ETS Review Panel. We do so from the perspective that businesses operating in New Zealand, or considering investment in New Zealand, may legitimately expect to be treated fairly, and to find clarity in legislation and regulations. This is necessary for upholding the rule of law and promoting New Zealand’s attractiveness for investment. Answers to the consultation questions are provided below.

5. We note our broad support for the submissions to the ETS Review Panel made by Business New Zealand and the Greenhouse Policy Coalition. Both submissions enter into much greater detail on, and substantiate many of the issues we raise in our submission.

6. Properly encouraged and managed, the resource sector’s contribution to the New Zealand economy could grow significantly. As a resource-rich country, and with new technologies and changing demands, New Zealand’s mineral and energy resources will afford economic opportunities for many decades to come. Naturally, these opportunities will need to be developed in the context of New Zealand’s response to climate change issues.

Full PDF Here: http://img.scoop.co.nz/media/pdfs/1104/ETS_Review__Members.pdf

ENDS

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