12. CHRIS AUCHINVOLE (National) Link to this
to the Associate Minister of Energy
Does he have confidence in Crown Minerals; if so, why?
Hon HARRY DUYNHOVEN (Associate Minister of Energy) Link to this
I assure the member yet again that the answer is yes, but there is always room for improvement.
Does the Minister simply use his signature as a rubber stamp on all mining applications that cross his desk from Crown Minerals, or does he seek additional information to satisfy himself of the value of each application; if the latter, what did he uncover that justified the extraordinary decision to personally sign off on a 40-year mining permit for Macdonald Investments for an area containing no identified commercial discovery?
Hon HARRY DUYNHOVEN Link to this
First, the member says that I took an extraordinary decision. I certainly did not. It was in line with the information provided and tabled, which I hope the member has read. I also say to the member that I take a strong interest in these issues, particularly when it is a new and innovative application, as the mining application from Macdonald Investments was.
Dave HereoraHon HARRY DUYNHOVEN Link to this
Yes, it is true. The introduction of an online permitting system in June this year ensures that New Zealand’s permitting systems continue to be not only amongst the best in the world but also amongst the fastest in the world.
Did the Minister, when personally granting the mining permit to Macdonald Investments, make any reference to its previous work history and lack of achievement, and was the Minister aware that even if it had made a discovery, it had no financial wherewithal to develop it?
Hon HARRY DUYNHOVEN Link to this
I certainly did inquire into the previous work history. The company had employed a new geologist and undertook a new technical and economic analysis, and then came back with a detailed proposal to apply for a mining permit to extract gas from what it believes is a commercially viable gas find.
How many employees does Macdonald Investments have working on the Westgas project that he signed off, and of these, how many are former employees of Crown Minerals?
Hon HARRY DUYNHOVEN Link to this
If the member likes to put that down as a written question, I will endeavour to find the answer. But, given the fact that his primary question led by asking whether I have confidence in Crown Minerals, of course I have not come prepared with detailed answers like that.
Does the Minister realise that mining industry participants are all dependent on his using best practice when dispensing his signature; and is he telling the House that his approval of Macdonald Investments is as good as his best practice gets, or who or what was it that made it seem such a good idea?
Hon HARRY DUYNHOVEN Link to this
The advice I received showed that the company had put forward a detailed work programme, which Mr Auchinvole or any member of the public can view online at their convenience. I would add this. The Pohokura permit, which I also personally signed, was in fact signed approximately 6 weeks—it may have been as many 8 weeks; I am doing this from memory—after it was applied for. This is a permit worth something like one thousand times more than the Macdonald Investments permit.
Which other Ministers did he discuss Macdonald Investments’ application with prior to his decision to personally approve it?
Hon HARRY DUYNHOVEN Link to this
From memory, I think I discussed it with two Ministers, the Hon Trevor Mallard and the Hon David Parker.