March 22, 2026 • 8 mins
Penny Simmonds looks at what the short term could hold in relation to possible fuel supply issues.
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Speaker 1 (00:00):
Stand welcome back to the muster.
Speaker 2 (00:12):
Penny Simmons is MP from the Cargoll as well as
being Minister for the Environment most other portfolios, and joins
us Penny, good afternoon the song as I'll stand by you.
This is a good chance for the government to stand
beside the people on this fuel crisis.
Speaker 3 (00:26):
Yeah, good afternoon and the yes, yes it is and
we're looking at options. But we need to be very
careful that we learn from the COVID lessons that you
don't go out spraying money everywhere because every dollar that
we spend has to be paid back at some stage
of it. So we have to make sure that any
(00:49):
assistance we give is really targeted and really focused, because
we know what happened when spending got splashed around and
lead to one hundred and twenty billion in debt. Inflation
takes off, mortgage rates take off, and so we cannot
repeat those mistakes. We need to be very disciplined, very
(01:11):
targeted in the assistance that we give. And look, I
know Greens are calling for things like making public transport free,
look at it serves just such a small part of
New Zealand. You're talking then only assisting those in urban
(01:32):
settings as there isn't buses, public public transport and gore.
We need to be very careful that it's targeted to
those that need it, and same with reducing the tax
on petrol. Again that would be across the board. Well,
not everyone does need it, so we need to be
(01:52):
sure that whatever we do it's targeted and focused at
those that really need it.
Speaker 2 (02:00):
Fuel rationing does come into play. How do you pick
and choose who receives it?
Speaker 3 (02:05):
Yeah, well look we've got you may have seen Nikola
Willis put out a criteria thing when we would look
at various changes, and obviously restioning becomes part of that,
things like Carlos days. There's legislation still there that allows
(02:26):
us to do that. So it'll be determined on how
much fuel is still coming through to us. As you know,
we've got seven weeks forty nine days worth of fuel.
When we came into government, there was considerably less fuel
than that available, so we've made sure that there is
increased reserves here in New Zealand. There's also that that's
(02:51):
on the water and coming to us. I think about
six there's been some changes and a handful of boats
that aren't going to get here. So you know, we
just will have to keep a really close eye on
when and how and make sure that the criteria is
very transparent. And obviously our industries, our emergency services are
(03:17):
the things that are most critical to us.
Speaker 2 (03:19):
Is this simply price gouging by the fuel companies or
perhaps just supply and demand coming into play.
Speaker 3 (03:26):
No, Look, we're keeping a really close eye on the
commerce commissions, watching the fuel companies really closely to ensure
that they're not using the situation to overcharge. I mean, basically,
they are putting their prices up now based on what
it's going to cost them to replenish their fuel stocks.
But you know, we have to keep a really close
(03:47):
eye on that there isn't any price gouging going on.
Speaker 2 (03:50):
Well, okay, then road User charges these rows maybe eighteen
months ago. Do we see a bit of short term
relief there?
Speaker 3 (03:57):
Perhaps, Look, I won't get ahead of any cabinet decisions.
As I said to you earlier that we're watching it
really closely, making decisions as we need to, but they'll
be cabinet decisions and I won't be able to announce
some Sorry Andy on your show.
Speaker 2 (04:16):
Yeah, I realized that too, but I think a lot
of people, like speaking to blad Drys before Penny and
they're just not really sure how this is going to
play out. The big arable operators are aligned having consistent
fuel and fertilizer flow under that stops and food production stops.
And he also said that over in Australia people won't
be planting because of the situation.
Speaker 3 (04:35):
Yeah, yeah, and we've been watching the Australian situation as well.
And also we're keeping a close eye on plastics because
a lot of plastic packaging is being impacted by this,
and of course a lot of our food production food
packaging manufacturing is impacted by that as well. So look,
(04:56):
it is a matter of when we hit certain milestones
will have to take action and making sure we've got
the legislation in place to be able to do that.
But we're very very mindful of food production because of
course the impact that that has on the cost of
(05:17):
living for people right across the country as well. So
certainly the discussions are around the industries that are most
critical to be able to get access to diesel, and
then also our imigencephasis.
Speaker 2 (05:37):
The data center that's proposed for Macaree Worth. I'm kind
of in the dark, no kind intendant is what's actually
going on with this?
Speaker 3 (05:46):
Yeah, so they've had consent approved and it's still some
way off. I think in terms of getting financials approved
for it, it's I understand generally international funding for it.
It's about data storage and also about having the ability
(06:09):
to link with Australia, and so it's mainly sort of
international entities looking for alternate data storage. So mainly I
think the States as are the clients and the customers
they are looking at. It's while it's quite a big
(06:31):
employer getting it set up, the construction of it on
an ongoing basis it's certainly much smaller, but certainly that
construction side of it, I think they're talking around about
five hundred and seventy five hundred and eighty. I think
it is jobs during the construction stage, but I don't
think those details of wind construction might start our final
(06:54):
life because it's still very dependent on securing the financial support.
Speaker 2 (07:00):
Now, the irony of all this pen is that in
the cargo maybe getting the fastest internet connection on the country,
which Danida remember not that many years ago, proudly calling
itself Gigatown. Whether that actually meant anything or not. I'm
not too sure, but everything's evolved, I suppose.
Speaker 3 (07:15):
Yeah, well, obviously that is one of the that will
be one of the advantages of it, that that Southland
certainly will have very very fasted Internet, and it's to
do with being able to get information through to Australia
and I think also to Singapore. I think it's that's
where they're looking at connecting to as well. So yeah,
(07:39):
look at it's an interesting thing, and it's one of
those things that our cold weather actually is a big
advantage because it takes a lot to keep these things cold,
and so the advantage for Southland is that the land's
available and it's cooler. But look, we've got a couple
(08:00):
of quite big things in the offing down here that
are going to be big users of power. So clearly
it has to go hand in hand with more generation
of power down here. So these things are sort of
it's a bit of a chicken and egg. Can't go
head to theres more power. More power is come through,
(08:22):
but you know, they don't want to produce more power
down here. Generators don't want to produce more power. Nest
is going to be used for it, so I think
you know everyone's sitting hoping and making sure that we
get everything aligned and that happens at the right time.
So sequenced, Get on.
Speaker 2 (08:39):
Your penny, enjoy the week. It's going to be a
busy one. It is, thanks very much by Andy Penny
Simmons MP from the cargo trying to explain what's happening
around this fuel. It's a case of yeah, stand by
and see what's going on there. Nigel Johnson's up next.
This is the Muster
Stand welcome back to the muster.
Speaker 2 (00:12):
Penny Simmons is MP from the Cargoll as well as
being Minister for the Environment most other portfolios, and joins
us Penny, good afternoon the song as I'll stand by you.
This is a good chance for the government to stand
beside the people on this fuel crisis.
Speaker 3 (00:26):
Yeah, good afternoon and the yes, yes it is and
we're looking at options. But we need to be very
careful that we learn from the COVID lessons that you
don't go out spraying money everywhere because every dollar that
we spend has to be paid back at some stage
of it. So we have to make sure that any
(00:49):
assistance we give is really targeted and really focused, because
we know what happened when spending got splashed around and
lead to one hundred and twenty billion in debt. Inflation
takes off, mortgage rates take off, and so we cannot
repeat those mistakes. We need to be very disciplined, very
(01:11):
targeted in the assistance that we give. And look, I
know Greens are calling for things like making public transport free,
look at it serves just such a small part of
New Zealand. You're talking then only assisting those in urban
(01:32):
settings as there isn't buses, public public transport and gore.
We need to be very careful that it's targeted to
those that need it, and same with reducing the tax
on petrol. Again that would be across the board. Well,
not everyone does need it, so we need to be
(01:52):
sure that whatever we do it's targeted and focused at
those that really need it.
Speaker 2 (02:00):
Fuel rationing does come into play. How do you pick
and choose who receives it?
Speaker 3 (02:05):
Yeah, well look we've got you may have seen Nikola
Willis put out a criteria thing when we would look
at various changes, and obviously restioning becomes part of that,
things like Carlos days. There's legislation still there that allows
(02:26):
us to do that. So it'll be determined on how
much fuel is still coming through to us. As you know,
we've got seven weeks forty nine days worth of fuel.
When we came into government, there was considerably less fuel
than that available, so we've made sure that there is
increased reserves here in New Zealand. There's also that that's
(02:51):
on the water and coming to us. I think about
six there's been some changes and a handful of boats
that aren't going to get here. So you know, we
just will have to keep a really close eye on
when and how and make sure that the criteria is
very transparent. And obviously our industries, our emergency services are
(03:17):
the things that are most critical to us.
Speaker 2 (03:19):
Is this simply price gouging by the fuel companies or
perhaps just supply and demand coming into play.
Speaker 3 (03:26):
No, Look, we're keeping a really close eye on the
commerce commissions, watching the fuel companies really closely to ensure
that they're not using the situation to overcharge. I mean, basically,
they are putting their prices up now based on what
it's going to cost them to replenish their fuel stocks.
But you know, we have to keep a really close
(03:47):
eye on that there isn't any price gouging going on.
Speaker 2 (03:50):
Well, okay, then road User charges these rows maybe eighteen
months ago. Do we see a bit of short term
relief there?
Speaker 3 (03:57):
Perhaps, Look, I won't get ahead of any cabinet decisions.
As I said to you earlier that we're watching it
really closely, making decisions as we need to, but they'll
be cabinet decisions and I won't be able to announce
some Sorry Andy on your show.
Speaker 2 (04:16):
Yeah, I realized that too, but I think a lot
of people, like speaking to blad Drys before Penny and
they're just not really sure how this is going to
play out. The big arable operators are aligned having consistent
fuel and fertilizer flow under that stops and food production stops.
And he also said that over in Australia people won't
be planting because of the situation.
Speaker 3 (04:35):
Yeah, yeah, and we've been watching the Australian situation as well.
And also we're keeping a close eye on plastics because
a lot of plastic packaging is being impacted by this,
and of course a lot of our food production food
packaging manufacturing is impacted by that as well. So look,
(04:56):
it is a matter of when we hit certain milestones
will have to take action and making sure we've got
the legislation in place to be able to do that.
But we're very very mindful of food production because of
course the impact that that has on the cost of
(05:17):
living for people right across the country as well. So
certainly the discussions are around the industries that are most
critical to be able to get access to diesel, and
then also our imigencephasis.
Speaker 2 (05:37):
The data center that's proposed for Macaree Worth. I'm kind
of in the dark, no kind intendant is what's actually
going on with this?
Speaker 3 (05:46):
Yeah, so they've had consent approved and it's still some
way off. I think in terms of getting financials approved
for it, it's I understand generally international funding for it.
It's about data storage and also about having the ability
(06:09):
to link with Australia, and so it's mainly sort of
international entities looking for alternate data storage. So mainly I
think the States as are the clients and the customers
they are looking at. It's while it's quite a big
(06:31):
employer getting it set up, the construction of it on
an ongoing basis it's certainly much smaller, but certainly that
construction side of it, I think they're talking around about
five hundred and seventy five hundred and eighty. I think
it is jobs during the construction stage, but I don't
think those details of wind construction might start our final
(06:54):
life because it's still very dependent on securing the financial support.
Speaker 2 (07:00):
Now, the irony of all this pen is that in
the cargo maybe getting the fastest internet connection on the country,
which Danida remember not that many years ago, proudly calling
itself Gigatown. Whether that actually meant anything or not. I'm
not too sure, but everything's evolved, I suppose.
Speaker 3 (07:15):
Yeah, well, obviously that is one of the that will
be one of the advantages of it, that that Southland
certainly will have very very fasted Internet, and it's to
do with being able to get information through to Australia
and I think also to Singapore. I think it's that's
where they're looking at connecting to as well. So yeah,
(07:39):
look at it's an interesting thing, and it's one of
those things that our cold weather actually is a big
advantage because it takes a lot to keep these things cold,
and so the advantage for Southland is that the land's
available and it's cooler. But look, we've got a couple
(08:00):
of quite big things in the offing down here that
are going to be big users of power. So clearly
it has to go hand in hand with more generation
of power down here. So these things are sort of
it's a bit of a chicken and egg. Can't go
head to theres more power. More power is come through,
(08:22):
but you know, they don't want to produce more power
down here. Generators don't want to produce more power. Nest
is going to be used for it, so I think
you know everyone's sitting hoping and making sure that we
get everything aligned and that happens at the right time.
So sequenced, Get on.
Speaker 2 (08:39):
Your penny, enjoy the week. It's going to be a
busy one. It is, thanks very much by Andy Penny
Simmons MP from the cargo trying to explain what's happening
around this fuel. It's a case of yeah, stand by
and see what's going on there. Nigel Johnson's up next.
This is the Muster
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