A Rolls Royce job required for the seabed
Posted in: Perspectives: Wednesday, 23 December 2009
NZResources.com - 23 December 2009
A Rolls Royce job required for the seabed
By Richard Michael, chief excecutive, Straterra
A major issue the Government will need to turn its attention to in 2010 is seabed legislation.
New Zealand recently gazetted its Exclusive Economic Zone (EEZ) which, at four million square kilometres, is the fourth largest in the world.
Our sovereignty over that area means that any minerals found in that zone belong to New Zealand. There is enormous potential for the discovery of gold, phosphate deposits and industrial minerals of various types.
Exploration for gold is already underway off the coast of the South Island and for phosphates in the Kermadec Trench.
One of the biggest jobs facing the Government over the next couple of years will be development of a legal framework to govern this huge potential resource.
Currently the Crown Minerals Act stops at the 12 mile limit and any minerals beyond that are the responsibility of the Ministry of Foreign Affairs. That is not ideal, given that this is not the department’s area of expertise. Some of the area is currently controlled by the Continental Shelf Act and other issues, such as Marine Protected Areas (MPAs) also come into play.
Those arrangements might have been adequate for the 12 mile framework, but they are patently insufficient for the EEZ. There is an urgent need for a new framework for this extended area, and one that is a coherent whole taking into account oil, gas, minerals, iron sands and other mineral resources and providing for proper environmental and fisheries management.
The vast area and distances involved means we must be extra vigilant to ensure rigorous environmental standards and stringent monitoring of any activity. We need clear policies and a management regime which works for all of the potential resources.
Of course, repeal of the Foreshore and Seabed Act, which has been foreshadowed by the Government, will also be a major issue in the coming year.
This will inevitably be a very delicate political issue and the Government will obviously be mindful of the position of its coalition partner which is likely to add another layer of complexity to what is already a complex situation with a number of competing interests.
However, given that we have a first principles review, now is a great time to take the opportunity to make sure that the various parties can work harmoniously together to maximise production while safeguarding the environment.
Attempting to cobble something together from the various existing bits of legislation will not work. We really need to start with a blank sheet of paper and compromise will be required on everybody’s part if we are to achieve a workable outcome.
Acts will need to be repealed and new acts made. This will be a mammoth piece of legislation which will be time consuming for officials and take up a large amount of Parliamentary time.
However, it is essential that we do a Rolls Royce job on this crucial area of our future.
If we can get this right then the potential benefits for all New Zealanders can be enormous and we can safeguard our environment while creating a stable environment in which explorers and producers feel confident in investing the vast sums required for exploration.
Straterra has already started discussing these issues with the Government and we see it as a strategic piece of work and one which will have important implications for both the sector and our country in the coming years.