Shane Jones: Resources Minister on lowering royalties to incentivise foreign investors

The Government has identified increased foreign investment as an important strategy to raise economic growth.

Shane Jones told Ryan Bridge to pay attention through the course of the day.

He says if we're not happy about using coal we have to think of other ways to boost the gas industry and interest in New Zealand. 

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Episode Transcript

Speaker 1 (00:00):
Shane Jones is keen to farm native octopus at twenty
one after five there's money to be made. He reckons
animal right activist groups unsurprisingly matters how at Auckland University
for doing a million dollar tax payer funded study into
the farming of native octopus. The Oceans and Fisheries Minister
with me this morning. Shane, Good morning, thanks, good to
have you on the phone. Now, can I just before

(00:21):
we get to the octopus, where's your oil and Gas
band reversal bill?

Speaker 2 (00:25):
At as soon as we pass the various bits of
legislation pertaining to the budget, it's next up. It's all drafted.

Speaker 1 (00:36):
Okay.

Speaker 2 (00:36):
There was a bit of a There were a few
things I had to correct because there was a debate
with the industry and myself over who and how should
the burden of paying for the tidy up after an
oil and gas enterprise finishes.

Speaker 1 (00:52):
Up the decommissioner.

Speaker 2 (00:53):
Yeah, got through that sensible place.

Speaker 1 (00:56):
Okay. Interesting, So you've got you've done your deals, you've
got the bill ready to go, and it'll happen after
the budget because it was meant to happen by the
end of last year. Right, So you finally got it
across the line.

Speaker 2 (01:05):
That's good tonight, ye, yeah, Well, basically what happened is
the guys from the industry felt that we had taken
an approach which actually disincentivized them spending more money. I
took an approach to protect the revenue base of the country,
worked it through with one of two of the key

(01:26):
senior ministers and look it's drafted and ready to go.

Speaker 1 (01:30):
What have you done to allay their fears?

Speaker 2 (01:34):
Well, we need to ensure that when decommissioning takes place
that it's done not at the level of the taj Mahal,
but it's comparable with international best practice. But at the
same time, if it comes to pass that some of
the infrastructure has to stay in place, providing that we're

(01:56):
closed off the possibility of spillage of any residual oil
and whatnot. And without sounding too track, common sense rule
the roost.

Speaker 1 (02:07):
So what you could leave some platforms out there?

Speaker 2 (02:09):
No, no, no no. In other countries around the world,
obviously the platforms disappear. Other countries are exploring were not
those cavernous areas under the seabed, if they're large enough,
whether that can be used in terms of climate change
areas carbon and stuff like that.

Speaker 1 (02:28):
But give us and give us a sense, what would
you let stay on the seabed.

Speaker 2 (02:33):
Oh look, when we spent the three or four hundred million,
I can't exactly. There's a crowd called tamar and they're
the ones who created the problem three or four years ago.
The Crown ended up absorbing the costs because they fled
like Butter and Kenny Hopson, and we took an approach
at every single thing had to be taken from the

(02:54):
bed of the sea, the foundations, any residual pipework, and
we've left an opportunity for a future minister and the
owners of the assets to meet a high threshold. At
the same time we can make a judgment.

Speaker 1 (03:15):
So you could leave at the point which you could
leave the foundations and the pipes in the ground.

Speaker 2 (03:20):
Well that's what they do in other parts. All right.

Speaker 1 (03:23):
Well, you know what the Greenies will say about that.
They won't be happy, Shane.

Speaker 2 (03:27):
Yeah, I do tend to trigger them. But the fact
of the matter is if we are unable to continually
rather generate an economic saiplus in New Zealand, we're not
going to be able to afford the costs of their rhetoric. Anyway,
I'm taking them on next week. They're having a protest
down And what.

Speaker 1 (03:45):
About the lowering of the royalties to incentivize foreign companies,
foreign investors? You rule that out.

Speaker 2 (03:55):
No, what i'd say is just pay attention during the
core of the day, That's what i'd say.

Speaker 1 (04:04):
So, come on, Shane, look at five twenty five in
the morning. No one's letten let me know.

Speaker 2 (04:10):
Hey, hey buddy, don't deprecate yourself.

Speaker 1 (04:13):
No, I'm just kidding. So, but but seriously, that is
that is an active issue, potentially lowering royalties.

Speaker 2 (04:19):
Well, now, what i'd say is that what's active is
that if we're four half, we're not happy about using
mountains of coal, then we've got to do things that
stir a greater level of interest and boost the risk
taking appetite for the gas industry. And just let's just
tie hoduring the course of the day.

Speaker 1 (04:39):
Okay, I haven't asked you about octopus. Does it taste nice?

Speaker 2 (04:45):
Yeah, it's called Thaki Mutuo. Dungy was an octopus pursuer.
But look what what I was really hoping to check
to you about. No, sorry, yeah, well you're right, it
is nice. I had an auntie who used to sort
of I know if you go up the island and
I had an auntie. When you've got it, you've belted
it and then you sort of softened it up.

Speaker 1 (05:06):
But all right, hey, minister, I've just been told that
I've actually spoken to you for far too long, so
we have to leave it there, I'm afraid, but I
do appreciate you coming on the program, Shane Jones, the
Ocean in Fisheries Minister. For more from Early Edition with
Ryan Bridge, Listen live to news Talks.

Speaker 2 (05:22):
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