Shane Jones: Resources Minister on reversal of oil exploration ban

The government will look at ways to set up long-term security for investors, when it reverses an oil and gas ban. 

Critics say this will be detrimental to the environment. 

Resources Minister Shane Jones told Mike Hosking “No one is going to make a long-term capital commitment to New Zealand in the face of short-term commitments.” 

Jones said “Potential investors are concerned there will not be confidence or security going forward.” 

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Episode Transcript

Speaker 1 (00:00):
The government is reversing our ban on oil and gas exploration.
The reality of the gap between the renewables and the
real world has come back to bite us as gas
supplies are dropping in each winter. We walk a very
fine line between supply and demand. Now the Minister of
a Resource of Shane Jones' is back with us.

Speaker 2 (00:12):
Good morning, correct, Hey morning folks, Gora.

Speaker 1 (00:15):
Now the legislation later on this year. Why can't it
be quick? At what's the hold up?

Speaker 2 (00:22):
Obviously we had to be very careful as to how
we made the announcement because there are share market implications
and we want to get this right because if you
go back five or six years ago, Megan Woods, we're
seenergy minister in the history of Western civilization and Jacinda
rushed this court. Winston and I runaways and that left
me with the Kobuki faces. And we don't want to

(00:44):
repeat the error of ambushing people. So take the time
to get it right and to boost the desirability of
New Zealand as a further destination for international capital.

Speaker 1 (00:53):
Yes, that reputational issue and I have talked about before,
how bad is it? How much work is required to
convince people we are back? Can and back in properly.

Speaker 2 (01:02):
Almost importantly, we're going to have to work with the
industry and work out what role the crowd can have
to establish long term contracts. No one is going to
make a long term capital commitment to New Zealand in
the face of short term arrangements in terms of boosting
energy through gas. I'm not really wanting to reprise contracts
from the past, but I've been told by major users

(01:25):
of gas we faced the industrialization, and potential investors are
quite frankly concerned that there will not be the level
of confidence or security going forward. So that's why I'm
came on very long term contracts.

Speaker 1 (01:38):
You referred to Megan Woods, did you were you really
taken unawares back in eighteen Did that really come out
of the blue or did you know it was coming in?
If it was, did you fight it.

Speaker 2 (01:48):
Now? Look, when I was on the stage with the
Kabuki Faces, I genuinely and I don't think, as I recall,
New Zealand First had a lot to do with that decision,
but it was sprung on us. It was a level
of extraordinary naivety. It's now history worst decision I've ever
been involved in terms of being apollot well, one of

(02:09):
the worst decisions of being involved in as a politician.

Speaker 1 (02:12):
No, over the weekend, those protests and it's related, but
not you know, it's fast track. It's your power, it's
your ability to make decisions along with the two other ministers,
of which oil and gas is part of the overall equation.
What don't they get about the fact on a cold
winter's morning, we don't have enough power that whereas still
important coal for God's sake, and the gap between what
we want to do in renewables is simply too large.

(02:33):
Why don't they understand that, Oh.

Speaker 2 (02:36):
They've been fed a diet of lotus eating ideology. They
refuse to accept that if you want to transition in
New Zealand, someone's going to pay for it. Look, you
just can't. You can't out of the blue conjure up
a new economic future just because you have a march
and leave all your rubbish in the local trash head

(02:58):
and then go home and feel that you've enjoyed some
sort of existential high. I deliberately chose to release the
decision pertaining to oil and gas. So there's a contrast
for keys. You either take the lotus eater green approach.
Who are people who want to tranquilize the economy or
you stand with us we're going to turbo charge the economy.

(03:19):
You've got a clear choice, all.

Speaker 1 (03:21):
Right, Appreciate you time. Shane Jones, our Minister of Resources.
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