Clendon David: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeClendon David: Questions for Oral Answer — Questions to Ministers[Sitting date: 04 August 2011. Volume:674;Page:20344. Text is incorporated into the Bound Volume.]12.DAVID CLENDON (Green) to theMinister for the Environment: How many tonnes of used lead acid batteries has the Government approved for export since January2008 and is this consistent with New Zealand’s obligations under the Basel Convention?Hon Dr NICK SMITH (Minister for the Environment): Responsibility for new export permits transferred from the Ministry of Economic Development to my portfolio on 1 July this year as part of the Government’s Environmental Protection Agency reforms. Permits were issued by the Ministry of Economic Development for 26000 tonnes in 2008 33000 tonnes in 2009 18510 tonnes in 2010 and 17000 tonnes so far this year. I am advised that those permits were issued by the Ministry of Economic Development consistent with New Zealand’s Basel convention obligations. Since becoming the responsible Minister I have initiated a formal review of our domestic policy. My preference is for these batteries to be recycled in New Zealand although I will need to be satisfied about the environmental standards given the quite chequered record of the Exide Technologies plant in Pētone. A further important consideration is the cost to consumers.David Clendon: Does the Minister then agree that exporting this volume of batteries is inconsistent with our Basel convention obligation to recycle batteries locally and that it could lead to the closure of our only domestic battery recycling facility?Hon Dr NICK SMITH: The advice I have from the Ministry of Economic Development is that those export permits were issued in a consistent way. There are two countries that those batteries have gone to: the Philippines and Korea. The Basel convention differentiates between developing and developed countries. Ministry of Economic Development officials did inspect the Philippines facility. They advised me that the standards there are the same or better than those of our own plant in Pētone. I am happy to table in the House the report on that Philippines plant. The other important differentiation is that the Basel convention differentiates between waste to be recycled and that to be disposed of. So the member needs to focus on the recycling provisions of the Basel convention rather than those for disposal in respect of these batteries.David Clendon: Can the Minister explain how if we lose the capacity to recycle batteries locally we can continue to meet our obligations under the Basel convention?Hon Dr NICK SMITH: The obligation is to ensure that such waste is responsibly disposed of and to ensure that where a country is exporting hazardous waste either for disposal or recycling it is being done in a proper way and that that country is aware of it. That is to say there has been a historical problem of developed countries like New Zealand sending waste off to countries that have no idea it is coming in and where it is not being properly disposed of. I restate that my preference is for these batteries to be recycled in New Zealand but I do have to be satisfied that Exide Technologies has an appropriate plant with proper conditions for the local environment. I remind the member that there have been substantive problems with those resource consents in Pētone and given the toxic nature of lead I think we would want to be strongly reassured of the plant’s environmental performance.David Clendon: Is the Minister then confident that all overseas facilities receiving batteries from New Zealand have suitable environmental and safety standards to meet obligations under the Basel convention?Hon Dr NICK SMITH: The advice I have had from the Ministry of Economic Development is that it is satisfied. I think that is a core issue and one of the reasons I have initiated the review is that now this responsibility has moved over from the Ministry of Economic Development to my own portfolio I want to sort of kick the tyres and make sure that we are doing best practice. If there is the opportunity to work with the Green Party on that I would welcome the opportunity.David Clendon: Would the Minister consider that a hand-written note that says “Fine by me.” on an export application indicates that a sufficiently rigorous assessment has taken place before the export of batteries has been approved?Hon Dr NICK SMITH: I do not believe that that is correct. I have before me the report from the Ministry of Economic Development officials who visited the battery recycling plant in the Philippines. It is a quite a detailed report. It is interesting to note that in respect of the air-quality standards that are required to be met in the Philippines the standards are the same as the current standards required in Pētone. There are some differences on the issue of water-quality standards. In my view the way we should move this issue forward is that it is absolutely proper that if we are exporting batteries the standards we would expect of any overseas recycler of those batteries should be exactly the same standards we would expect of a New Zealand facility.David Clendon: I raise a point of order Mr Speaker. With respect to the Minister I think he may have misunderstood the question. I was not asking a question relating to the quality or otherwise of the destination but in fact I was asking about an export application document on which an official had written a note “Fine by me.” which was apparently the extent of the assessment that had been done prior to the approval being granted.Mr SPEAKER: I thought—and the Minister will correct me—the Minister indicated he did not accept that that was the extent of the assessment of the application. But if I am wrong there the Minister should correct that because the question was very specific about that indeed.Hon Dr NICK SMITH: I seek leave of the House to table the report by the Ministry of Economic Development on its visit to the facility in the Philippines setting out the inspection and the environmental standards of the facility that is recycling those batteries.Mr SPEAKER: Leave is sought to table that document. Is there any objection? There is no objection.Document by leave laid on the Table of the House.But I come back to the point of order raised by David Clendon. It did not relate to matters in the Philippines; it related to exports from New Zealand I take it and an—Hon Dr NICK SMITH: Mr Speaker—Mr SPEAKER: OK if the Minister could clarify—what I will do to make it all clear is ask David Clendon to repeat his question. If he could repeat his supplementary question because it was a fair question.David Clendon: Would the Minister consider that a hand-written note which says “Fine by me.” on an export application indicates that a sufficiently rigorous assessment has taken place before export of batteries has been approved?Hon Dr NICK SMITH: I have not been the responsible Minister for the period going backwards; no permits have been issued by my own ministry. My advice from the Ministry of Economic Development is that these batteries are being exported to facilities in Korea and to a facility in the Philippines. Korea of course is a developed country so there are different provisions under the Basel convention for relying on its regulatory sense. As I have already indicated to the House I am happy to table the detailed report on the facility in the Philippines where the batteries have been sent to from New Zealand.David Clendon: I seek leave to table a hand-written note from the Ministry of Economic Development which says “Fine by me.” regarding the granting of an application to export batteries.Mr SPEAKER: Leave is sought to table that document. Is there any objection? There is no objection.Document by leave laid on the Table of the House.David Clendon: Is the Minister aware that an export application may be approved—and indeed has been approved—despite an assessment from officials that “We are not fulfilling our obligations under the Basel convention.”?Hon Dr NICK SMITH: I will restate that I have been responsible only since 1 July when the functions were transferred over. No I am not aware of that. But I re-stress that since taking responsibility for these Basel convention responsibilities I have initiated a review of the policy. I restate the Government’s objective—that is that if batteries are to be exported from New Zealand our expectation is that they will be recycled or be dealt with as waste to a standard that would be no different from what we can reasonably expect from a facility dealing with that waste or recycling in New Zealand.David Clendon: I seek leave to table an export approval document obtained from the Ministry of Economic Development which states “We are not fulfilling our obligations under the Basel convention.”Mr SPEAKER: Leave is sought to table that document. Is there any objection? There is no objection.Document by leave laid on the Table of the House.David Clendon: Will the Minister ensure that the review is completed in a timely fashion ensuring that all future applications to export batteries are dealt with in a way that complies with the Basel convention?Hon Dr NICK SMITH: The Ministry of Economic Development currently has three export permits before it. The bill that has now become an Act which was put through this Parliament makes plain that applications that were received prior to 1 July remain as the responsibility of the Ministry of Economic Development. My responsibilities will be for any future applications that are lodged after 1 July.Dr Russel Norman: I raise a point of order Mr Speaker. I wonder whether the Minister could address the question of the timeliness of the review. When will the review be completed?Mr SPEAKER: Just before I call the Minister I think it is a reasonable point of order because the question actually asked about the review not about the application. But if there is doubt about the question I ask David Clendon to repeat his question please if he can remember it.Hon Dr NICK SMITH: There are two parts to the question and I did answer the part about the further permits. I am more than happy to answer the question about the review. I have asked my officials to prepare the terms of reference. I will want to consult Exide Technologies about the terms of reference to get that policy under way. I do understand the point the Greens make and that is that it does need to be done in a timely way. I also note that the Greater Wellington Regional Council is dealing with the resource consent issues for Exide Technologies simultaneously.Mr SPEAKER: I thank the Minister.Hon Trevor Mallard: Does the Minister accept that it might be preferable to export the batteries rather than have them processed at a plant where there has been a history of workers getting lead poisoning lead emissions going to the neighbours the dumping of sludge in the Wainuiōmata area which polluted the stream—Paul Quinn: You did nothing about it when you were a Minister Trevor.Mr SPEAKER: Order!Hon Trevor Mallard: Paul Quinn might not care about—Mr SPEAKER: Members should not interject like that. I do ask the member to ask his question please.Hon Trevor Mallard: Does the Minister accept that it might be preferable to export the batteries rather than have them processed at a plant that has a history of explosions causing damage to workers both by lead and by the explosions leakage at the boundary going into neighbours a history of sickness of workers from lead poisoning a history of dumping sludge in the Wainuiōmata tip then going into the Wainuiōmata Stream and that is now trying to save its bacon by employing a high-priced law firm to work with the Greens to ask these questions?Hon Dr NICK SMITH: The track record of the Exide Technologies plant in Pētone is not acceptable. If we are to recycle the batteries in New Zealand rather than export them the Government needs to be satisfied that that facility is run by world best practice. The underlying issue for this Government is whether the batteries are recycled and processed in New Zealand or overseas and that those standards are proper and protect public health and the environment.Mr SPEAKER: That brings to a close questions for oral answer today. I call on Government order of the day No. 1. [Interruption] Before I call the Hon Peter Dunne can I say to Paul Quinn at the back of the House that he was most discourteous. I had called Government order of the day No. 1 but I could not even hear the Clerk because the member’s interjections provoked other noise. There is nothing wrong with interjections but just be a little more sensible and reasonable about when the interjections are made.