12. CHRIS AUCHINVOLE (National) Link to this
to the Associate Minister of Energy
Does he have confidence in Crown Minerals?
Hon HARRY DUYNHOVEN (Associate Minister of Energy) Link to this
Yes, but there is always room for improvement. In addition, with reference to the matter raised by the same member in his similar question yesterday, I tell him that contrary to his allegations, I acted in accordance with officials’ advice. I will seek leave to table that advice at the end of the question.
When the Minister personally granted a petroleum mining permit to Macdonald Investments Ltd, was he aware that over the previous 15 years, despite two terms of exploration permits, the company had never made a discovery?
Hon HARRY DUYNHOVEN Link to this
First, the member should get his facts right. [ Interruption] Yes, I invite the member to repeat his allegation outside. I am sorry, Madame Speaker. In response to the comment by Maurice Williamson, I invite the member to take the comments he made yesterday and say them again outside. I will be very much prepared to have a dictaphone there. I say to the member Chris Auchinvole that he should get his facts right. Macdonald Investments had operated the permit for approximately 8½ years when it came to Crown Minerals wishing to review its operation and look at some alternative way of resolving the issues it had come across. This particular permit was an exploration permit in its second term. The terms were of 5 years and 5 years, and Macdonald Investments had not completed the second term. The application that it made in the end, after discussion with Crown Minerals, was for a mining licence, which is quite different to the original application. It has not been unusual, when a licence is of a new or an interesting nature, for me to take a personal interest in it and to sign it personally. This was the first occasion on which a coal-seam gas mining licence had ever been applied for in New Zealand. That is why I signed it personally, just as I signed licences for the Pohokura project and many others projects of national importance.
Why did the Minister personally grant the mining licence, knowing that Macdonald Investments had made no previous discoveries; and did he also know that in the period from 2002 to 2006 Macdonald Investments did not complete its scheduled work programme?
Hon HARRY DUYNHOVEN Link to this
Yes, I did know that it had not completed its obligations under its previous application. However, I absolutely complied with the statutory responsibilities, and when I table the information members will all be able to see just how wrong the member is. He should support the company, which is making a significant investment in his own area.
Is the Minister aware that section 38 of the Crown Minerals Act states that the Minister “shall decline” permit amendments and extensions where holders have failed to substantially comply with permit conditions; if so, what was the compelling argument that caused him to not only fail to revoke Macdonald Investments’ exploration permit in the face of non-performance but to open-handedly grant it a 40 - year mining permit?
Hon HARRY DUYNHOVEN Link to this
Most mining permits are of that sort of duration. That is the first point. The second point is that—
Hon HARRY DUYNHOVEN Link to this
I am sorry, but I take offence at that remark. I will deal with that at the end of the question. The second point that I make to the member is that he should not listen to disgruntled former employees of the company and should actually look properly at the legislation himself, because the legislation that Macdonald Investments applied for the original permit under was, in fact, related to an exploration permit. The permit the company now has is a mining permit. Those are two quite different things. What the company has done, and what the application was for, is to considerably increase the investment being made by the company and to take what is a not inconsiderable commercial risk itself. But that is the company’s choice. In addition I will say this. Since acquiring the mining permit, Macdonald Investments Ltd has seen considerable commercial interest in its operations, and it has successfully managed to utilise the skills of an organisation with considerable international specialisation in coal-seam gas technology. That is new to New Zealand, and it is something the member should be aware of because he lives in the area. I do not think he is doing a good job at all for the company involved.
Sue MoroneyHas the level of mineral and petroleum activity on the South Island’s West Coast increased in recent years?
Hon HARRY DUYNHOVEN Link to this
Yes, considerably so. Since I became the Associate Minister of Energy, there has been a marked increase in activity in the region. During that time, 199 permits have been issued. Of those, 160 have been for minerals, 13 have been for petroleum activity, and the remainder have been for coal.
What is the Minister’s explanation for not following section 38 of the Act, for not listening to all of the advice of Crown Minerals officials, and for taking the unusual step of becoming personally involved and signing off on an unprecedented mining permit after only 1 month of consideration?
Hon HARRY DUYNHOVEN Link to this
The member is wrong on virtually every point he made in his question. The 1-month period was the period in which the actual formal application had been made, but the company had been involved in discussions with Crown Minerals over that application, if not for years then certainly for many months. Also, I will tell the member that I have signed many permits. It is not unusual. Just recently, I signed the Great South Basin permits.
Hon Paul SwainGiven that a former Associate Minister of Energy in this Labour-led Government was not as successful as the current one is, could the Minister outline the specific things that the current Associate Minister has done that were not achieved as much by the former Associate Minister of Energy?
Hon HARRY DUYNHOVEN Link to this
I certainly would not want to embarrass my colleague. But can I say that there has been a considerable upgrade of the ability, particularly technology-wise, within Crown Minerals to enable it to respond to a greatly more competitive world exploration environment. I also say that this allegation has been rather a surprise to me. I would have thought that the member Chris Auchinvole would support his local company, actually support what it is doing, and at least go to talk with the company about what it is involved with. It is no wonder he is not the local member there. Madam Speaker, I seek leave to table the documentation and advice on Macdonald Investments Ltd—the company outlined by the member.