Shane Jones: Resources Minister reveals he's focusing on how to ration gas to keep businesses afloat

Resources Minister Shane Jones is investigating whether to ration gas to keep some businesses going.

Fertiliser co-operative Ballance last week revealed it's considering a four-month temporary closure after it failed to renew its long-term gas deal.

It was outbid by Contact Energy, which is supplying homes.

Jones says he'll be focusing on what's doable, to help solve the shortage.

"We're not making any blunt decisions, for example, we've got hospitals and schools dependent on gas."

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Episode Transcript

Speaker 1 (00:03):
Questions, answers, Thanks analysis the drive show you trust for
the full picture. Heather Duplessy own drive with one New
Zealand let's get connected and news dogs. That'd be.

Speaker 2 (00:17):
Good afternoon.

Speaker 3 (00:18):
There are reports that Shane Jones is investigating whether he
can or should ration our gas supply to keep certain
businesses going. Now this comes after Balance lost its gas
supply to Contact Energy so that Contact Energy could supply homes.
Shane Jones is the Associate Minister of Energy and with
us right now.

Speaker 4 (00:34):
Hey Shane, hey, good, good afternoon.

Speaker 2 (00:37):
Are you seriously considering rationing?

Speaker 4 (00:41):
I will take on some advice as to how we
can dedicate the gas to the most important purpose from
Andy Night at the gas company and our MB officials. Naturally,
there's a lot of resistance to the idea of the
crown replacing the market. But I've got to tell you,
with the gas plummeting and the ability of gent tailors
to burn or coal, we don't want to see them

(01:02):
profiting from too much gas at the cost of ordinary
Keiwis who are really living in grim circumstances in relation
to their business life.

Speaker 2 (01:11):
Are you considering banning new gas connections on new builds.

Speaker 4 (01:16):
No, No, I'm aware that there is a proposal to
transition people in their homes away from gas to solar energy,
and they've done that in aussy and that should be
looked at. But I'm not in the business of banning
any gas experience. That was my unfortunate acquiescence six years ago,
and hopefully you realize I've paid my penance.

Speaker 2 (01:37):
Okay, So what happens if you do get into the
rationing business. What happens to people who need gas to
run their stoves?

Speaker 4 (01:45):
Well, let's just step back. The first thing is we're
going to deploy some of this two hundred million dollars
in the short term to accelerate the delivery of gas
amongst those limited number of companies that are still sinking
wells in Taranaki and can increase the amount of gases.
The bigger problem, however, is that the gas decline is
continuing down inexorably. Trying we are trying to work with

(02:09):
firms to transition them onto electricity, but I got to
tell you, Heather, the electricity prices are still stupendously high,
and that won't change until we've tamed the animal spirits
in the gentle toptually.

Speaker 2 (02:20):
But listen, Shane, answer that question for me. If you
designed to ration and you give it to business ahead
of consumers who live in houses, what happens to the
houses that need to run gas through their stoves? What
do they do?

Speaker 4 (02:31):
No, we're not We're not making any blood decisions. For example,
we've got hospitals and schools that are dependent on gas.
So no, no, no, we're not going to make any
blunt decisions. We're going to first make sure that we've
got high quality advice and what is actually doable. And
that's why I would turn to arguably the cleverest man
about gas in New Zealand, the CEO of the gas company.

Speaker 2 (02:50):
Listen, is this thermal co idea goer for you?

Speaker 4 (02:55):
Well, it originally started, I'm told, with Contact Energy before
I had the portfolio, and well, you know, we've got
to move through the various options that the officials will
provide to us, and we haven't got to that point.
But their mixed views about it. One view is that
the crown is absorbing the detritus of the gent tailors

(03:18):
will lay swe off and make more money, but that
won't be happening. Their glory days are over and the
other is if we need gas and coal, it's probably
a good idea to ensure that we have our own
reserves of coal rather than just bringing it in from Indonesia.
And if we're going to get more gas, either imported
or extracted from our own land, then the government needs

(03:39):
to have an integrally involved and that to keep the
lights on.

Speaker 2 (03:41):
Right Shane, thanks for your time. Shane Jones, the Associate
Minister of Energy.

Speaker 1 (03:45):
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