Definition of Essential Industry & Services needs updating

Maui Gas leak – Definition of “Essential Industry & Services” needs updating

The uneven impact of the Maui gas pipeline failure on businesses and services suggests a review and update is required, says Auckland Chamber of Commerce head Michael Barnett.

More than 2500 businesses along with hospitals were affected by the leak in the pipeline carrying gas to the upper North Island.

However Mr Barnett notes that some essential industries and services able to access limited gas flows available were still unable to operate because they depended on supplies from other businesses that had to shut down because they weren’t considered an essential industry.

“We need to get this tidied up so that in the event of a future event, whether an energy breakdown, drought or some other cause, to ensure that the definition of essential industries and services extends to key suppliers.”

Noting reports that pipeline operator Vector is confident it can restore full gas supply to upper North Island businesses over the weekend, Mr Barnett said the company had put in place a good communication process to users.

It was also reassuring to see that the pipeline owner Maui Development was showing concern about the impact of the gas shutdown on customers.

“With these kind of events and interruptions to businesses occurring more frequently, whether an energy breakdown, transport, drought or some other cause, it is time we looked at updating what is an essential industry and come up with a better definition and hierarchy that aligns with today’s business environment.

“These days, most businesses are dependent on a cluster of suppliers. Maybe the definition of ‘essential’ needs to be expanded to take into account groups or clusters of inter-dependent industries,” suggested Mr Barnett.

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