John MacDonald: If you see Shane Jones, tell him he's dreaming

Associate Energy Minister Shane Jones says we live in uncertain times and, because of that, we need to crank up the Marsden Point oil refinery again.  

I agree that we live in uncertain times, but I certainly don’t agree that we should pour time and money into something which has had its day.  

Shane Jones isn’t the only person talking about it though. The Prime Minister has said too that the Government is considering reopening Marsden Point as part of its plan to strengthen the country’s fuel and energy security.   

Because, since it was closed in April 2022, we’ve been importing all our refined fuel.   

We’ve also been importing all the bitumen we need for roads as well since the refinery closed. Before then, 70% of the bitumen used in New Zealand for roads was produced at Marsden Point, with 30% imported. Now 100% is imported.  

But let’s not forget some of the nonsense that gets trotted-out about the old refinery. Which, once you cut through and dismiss, shows just how crazy it would be to try and get it up and running again.  

First up: it wasn’t the previous Labour government that shut it down – the Associate Energy Minister was trotting out that line again this morning.  

It was actually shut down by the private company which owned it back in 2022. The company was known as Refining NZ, these days it’s known as Channel Infrastructure.  

I think the Government needs to drop this idea of looking into reopening it. Because if the people who know a thing-or-two about running a refinery think it’s a stupid idea, then who am I going to listen to? The people who know what they’re on about?   

Of course I am. We all should, including the Government.   

Because all this is, is another one of those desperado elements of the coalition agreement between National and NZ First.  

Shane Jones is from the north and he’s just doing what any MP would do for their region.   

And, before he continues with all this bluster about geopolitical clouds casting doubt on our future fuel supply, he should listen to what Refinery NZ said a year after shutting down the refinery.  

They said it would cost billions to reinstate and take at least a couple of years to do it. So why would you? Especially, when you consider who might run the thing.  

Because if the private outfit that used to run it wanted out, I don't see anyone else putting their hand up to take over.  

What’s more, generating electricity is the future. Refining oil isn’t. 

Even one of the union people who fought against the closure thinks we’d be flogging a dead horse trying to reopen it.  

Justin Wallace is First Union’s oil and gas co-ordinator and he’s on record as saying that it would be unrealistic to expect the refinery to be cranked into action again.  

He has said that although the footprint of the refinery is still there, the company that shut it down dismantled its key components as soon as they were able, and 80-90% of the staff who had worked at the refinery have left.  

He says: “They've gone overseas, taken redundancy, or retired. Unless the Government is willing to tax more people to find more money to rebuild it, I think it's a pipe dream.”  

Can someone please pass that on to Shane Jones? 

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Episode Transcript

Speaker 1 (00:06):
You're listening to the Canterbury Morning's Podcast with John McDonald
from Newstalk zb.

Speaker 2 (00:12):
SO Associate Energy Minister Shane Jones. He says, we live
in uncertain times and because of that we need to
crank up the Marsden Point oil refinery. Again, Shane, I
agree that we live in uncertain times, but I certainly
don't agree that we should pour time and money into
something which has had its day. Marsden Point is history.

(00:34):
Shane Jones isn't the only person talking about it, though
in favorable terms. The Prime Minister has said too that
the government is considering reopening Marsden Point as part of
its plan to strengthen the country's fuel and energy security
because since it was closed in April twenty twenty two
to three years now, since then, we've been importing all

(00:55):
our refined fuel, haven't we. As Shane Jones is on
about saying all, you can't rely on that being as
straightforward as it might be now, and before it was closed,
by the way, we've also been importing all of the
bitchmen we need for roads as well since the refinery closed.

(01:16):
Before then, seventy percent of the bitchmen used in New
Zealand for roads was produced at Marston Point thirty percent imported,
now one hundred percents imported. But let's not forget some
of the nonsense that gets troddened about or trodded out
about Marston Point, which I think, once you cut through
and dismiss, shows just how crazy it would be to

(01:37):
try and get it up and running again. First up,
First up, it wasn't the labor government that shut it down,
you know, the Associated Energy Minister. He was trotting out
that one again this morning when he was talking to
Heather that it was actually shut down by the private
company which owned it back in twenty twenty two. It
was known then as a refining end z. These days
it's known as Channel Infrastructure. Two hundred and forty jobs

(02:01):
went in the process, so it was a big DLA
And ever since closing the refinery has been blamed for
all sorts of things, from high fuel prices to cruddy roads.
But I think we have to get over it. In fact,
I know we have to get over it, and I
think the government needs to drop this idea. In fact,
I know that the government needs to drop this idea

(02:23):
of looking into reopening it because if the people who
know a thing or two about running a refinery. If
they think it's a stupid idea, if they shut it
down three years ago, then who am I going to
listen to the people who know what they're on about.
Of course I am. We all should listen to the
people who know what they're on about, including the government.
They need to listen because all this is is another

(02:47):
one of those desperado elements of the coalition agreement between
National and New Zealand. First is Shane Jones is from
up north and needs to him what any MP would
do for their regina. I'll get the jobs back, I'll
get the refinery going under the cloud of geopolitical risk.
And before he continues with all this bluster about you know,

(03:08):
geo political clouds casting down on our future fuel supply,
he should listen to what Refinery end Z said a
year after they shut the thing down. They said it
would cost billions to reinstate and it would take at
least a couple of years to do it. See, here's
a question, why would you now? I know, before you
start yelling at the radio, I know I might sound

(03:30):
like I'm contradicting myself here, Given I said just the
other day, was Friday or Thursday, only a few days ago?
Given that I said, I thought the government should spend
a truckload of money to build the infrastructure so we
can import liquefied natural gas, gas that would be used
to generate electricity when things like the hydrolacts are running low.
But an oil refinery completely different proposition altogether, especially when

(03:55):
you ask a question who would run it, because if
the private outfit that used to run it, if they
wanted out, I didn't see anyone else putting their hand
up to take over.

Speaker 1 (04:04):
Do you m.

Speaker 2 (04:07):
Of course not. And what's more, generating electricity that is
the future, Refining oil is the past. So I feel
very confident that I'm not contradicting, contradicting myself saying yeah, yeah,
spend billions so we can import gas, but don't spend
billions so we can refine oil ourselves. And even one
of the union people, this is what's about cutting through

(04:30):
the nonsense that gets thrown about when you start talking
about Marsden Point. Even one of the union people who
fought against the closure a few years back, he reckons
we would be flogging a dead horse trying to reopen it.
Justin Wallace as First Union's Oil and Gas coordinator, and
he's on record is saying that it would be unrealistic

(04:51):
to expect the refinery to be cranked into action again.
He said that, you know, although the footprint of the
refinery is still there, the company that shut it down
dismantled its key components as soon as they were able
to and get this, eighty to ninety percent, eighty to
ninety percent of the staff who had worked at the
refinery have gone, he says. Quite. They've gone overseas, taken redundancy,

(05:13):
or retired. And he says, unless the government is willing
to tax more people to find more money to rebuild it.
Yet this is the union guy. He says, quite, I
think it's a pipe dream. That's what the union guy
who fought the closure thinks, just like the company that
used to run it, And like I think, Marsden Point,

(05:35):
the Marsden Point Oil Refinery is history and we need
to accept that it has to stay that way.

Speaker 1 (05:42):
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