Bridges Simon: Crown Minerals (Permitting and Crown Land) Bill — Second Reading 
Text is incorporated into the Bound Volume 
Bridges Simon: Crown Minerals (Permitting and Crown Land) Bill — Second Reading 
[Sitting date: 21 March 2013. Volume:688;Page:8844. Text is incorporated into the Bound Volume.] 
Hon SIMON BRIDGES (Minister of Energy and Resources) 
: 
 I move  
That the Crown Minerals (Permitting and Crown Land) Bill be now read a second time 
. I would like to take this opportunity to thank the chair Jonathan Young and members of the Commerce Committee for their work in considering this complex piece of legislation. I also acknowledge the time submitters took to provide their views to the select committee. It is positive that the select committee had the opportunity to hear views about mining from so many perspectives. 
This bill refreshes the Crown Minerals Act 1991 to support the Government’s objective of growing the mineral sector whilst ensuring even greater levels of health and safety and environmental oversight. New Zealanders rightly demand high standards from the mining sector. This legislation is a key element in providing that assurance. This bill does not seek to replace existing legislation in relation to health and safety and environmental management; rather it better integrates the functions of various regulatory processes to ensure health and safety and environmental considerations are embedded throughout the process. The majority of submitters agreed with the proposal to consider the health and safety and environmental capacity of permit applicants before permits are awarded. Processes to ensure these matters remain on the agenda for the life cycle of a permit such as annual review meetings with permit holders and information-sharing provisions between regulators were also endorsed. I am confident that the Ministry of Business Innovation and Employment will implement these changes in a way that does not result in undue delay in permit decisions or duplication of effort. 
The report of the Royal Commission on the Pike River Coal Mine Tragedy was released while the bill was being considered by the select committee. The royal commission explicitly endorsed the proposals put forward in the review of the Crown Minerals Act but it was clear that these needed to be strengthened. The bill as reported back incorporates further amendments that take account of the royal commission’s report and submissions that were heard on this. These changes will ensure that health and safety becomes an integral part of the permitting process without introducing undue costs or uncertainty. This bill represents the Government’s response to two of the royal commission’s recommendations. A comprehensive work programme on the other 14 recommendations is under way. 
As expected the purpose statement generated a significant amount of interest throughout the committee’s proceedings. The purpose statement neatly encapsulated the Government’s desires for the sector. It intentionally promotes “prospecting for exploration for and mining of Crown owned minerals for the benefit of New Zealand” but recognises that any activity must be undertaken in accordance with “good industry practice”. Embedding such a balance into the purpose statement makes it clear that permitting decisions will consider health and safety matters as well as the potential economic return to the Crown. 
This bill ensures the ongoing protection of schedule 4 land. This protection is enhanced by automatically including any land that meets the criteria for inclusion in schedule 4. Some concerns were raised that having Cabinet as the decision maker for the designation of high-value conservation land would erode the Minister of Conservation’s role as steward of the conservation estate. This is not the case. It has always been a matter for Cabinet to add land into schedule 4. The reforms ensure that this will happen as a matter of course. There was some objection to the Minister of Energy and Resources having a role in determining whether to grant access to Crown conservation land for mining and the inclusion of economic criteria in the decision into whether to grant a land access agreement. The bill retains these proposals but ensures that the role of the Minister of Energy and Resources is limited to the small number of mining operations that have the potential to generate a significant economic return. Economic considerations will also take account of any direct impacts on other businesses that might be affected by the mining project. 
This bill is part of a package of reforms that responds to the Waitangi Tribunal’s report on the management of the petroleum resource. It introduces a requirement for permit holders to report annually on their engagement with iwi and hapu. Some submissions suggested that this requirement does not go far enough and that it should spell out detailed expectations on how permit holders should engage and the consequences of doing so. I am of the view that it is a matter for permit holders and iwi to determine how to engage at a local level. Embedding such expectations into the legislation would be too limiting given the diversity of iwi views on mining and their willingness to engage with permit holders. This requirement must be seen in the context of a broader range of reforms aimed at enhancing the relationships between permit holders the Crown and iwi. Of note is the intent that New Zealand Petroleum and Minerals will provide operational support to assist creating relationships at a local level in the interests of all parties. 
I am grateful to the submitters and the select committee whose thorough consideration has served to improve this legislation. The bill as reported back reflects the Commerce Committee’s agreement on the majority of amendments proposed and its response to issues raised by a wide range of submitters. It also includes a large number of technical amendments to improve the workability of the Act and bring it into line with modern drafting conventions. This bill is a key element in helping New Zealand realise its huge petroleum and mineral potential while giving us the confidence that the regulatory system we have is robust. I am very pleased to commend the Crown Minerals (Permitting and Crown Land) Bill to the House.