Hughes Gareth: Questions for Oral Answer — Questions to Ministers Questions to Members 
Hughes Gareth: Questions for Oral Answer — Questions to Ministers Questions to Members 
[Volume:670;Page:17262] 
12. 
GARETH HUGHES (Green) 
 to the  
Minister of Finance 
: What steps if any is he taking to reduce New Zealand’s economic vulnerability that stems from dependence on oil? 
Hon BILL ENGLISH (Minister of Finance) 
: 
 The Government is moving to ensure that in the light of any number of potential international pressures or economic shocks we have a resilient economy where price changes flow through quickly and people have the opportunity to adapt to those price changes as they will if the price of oil continues to rise. 
Gareth Hughes 
: Is he aware of the UK Government’s recent carbon plan which sets out a number of Government actions that will reduce the UK’s economic dependence on oil and why does New Zealand not have such a plan? 
Hon BILL ENGLISH 
: New Zealand had some kind of carbon plan that was put together by the last Government but the analysis I saw of it showed that it set out very expensive ways of reducing carbon. We actually favour the emissions trading system which I know the Greens favour as well. 
Gareth Hughes 
: Is the Minister aware of the Dunedin City Council’s peak oil vulnerability analysis report which identifies local government actions to prepare for high oil prices? Why is the National Government not undertaking a similar analysis? 
Hon BILL ENGLISH 
: I have not been aware of that report but it is likely that it will not be particularly effective judging from the title of it and the fact that a local council has very little opportunity to actually influence the Western World’s vulnerability due to its use of oil. 
Gareth Hughes 
: Will the Minister act on the recommendations of the 2008 New Zealand Transport Agency report  
Managing transport challenges when oil prices rise 
 which advises the Government to cease all new motorway building until Government funding and regulations that increase our dependence on oil have been removed? 
Hon BILL ENGLISH 
: I expect that under this Government’s programme to upgrade our roading infrastructure people will have more choices—for instance to catch buses. I would be interested in discussing the issue with the Greens. A successful public transport system will certainly rely on buses as the main form of public transport. Buses need roads that are not totally congested otherwise they cannot provide a service to the public. 
Gareth Hughes 
: What percentage of commuter bus services does he expect to use the Waikato Expressway the Puhoi to Wellsford “Holiday Highway” or any of the other five planned motorway projects? Does he not agree that investment in buses and trains would make the existing road network more efficient than new motorways? 
Hon BILL ENGLISH 
: The Waikato Expressway is a vital infrastructural artery for our export economy. Although commuters have interests and the Government needs to invest in transport infrastructure to meet their needs it is actually more important that we have an economy that can earn and be competitive in the world. That is why we focus on some infrastructure outside of the main cities. 
Gareth Hughes 
: How can New Zealanders respond to price signals and change their travel behaviour when his Government is prioritising $10 billion on expensive motorways over other essential public transport projects such as the Auckland central business district rail loop? 
Hon BILL ENGLISH 
: A feature of the Government’s programme is that it has maintained a significant investment in public transport such as the Auckland rail network and the Wellington commuter rail network alongside a significant investment in roads. We believe the combination of the two will lift our productivity and increase the prospects of sustainable economic growth in the future. We accept of course that rising oil prices and rising petrol prices may well change behaviours. People are making those decisions one by one right now. We do not believe an overall bureaucratic plan will do a better job of adapting than individual New Zealanders can do. 
Gareth Hughes 
: Given that oil makes up 16 percent of our imports and 99 percent of our transport fuels why is the Government failing to act responsibly by developing a national strategy to reduce our oil dependency as many other countries and local councils are doing? 
Hon BILL ENGLISH 
: Because we do not see a strategy as a replacement for action. I know that that is a radical change in approach from a New Zealand Government. Every day New Zealanders are making decisions to change their behaviour based on changes in the oil price and we think that largely they are making pretty sensible decisions. 
Gareth Hughes 
: I seek leave to table two documents. The first is a letter revealed under the Official Information Act from the New Zealand Transport Agency that states there has been no modelling of high oil prices— 
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. 
Gareth Hughes 
: The second document I seek leave to table is the research report 357 commissioned by the New Zealand Transport Agency entitled  
Managing transport challenges when oil prices rise 
 which recommends ceasing spending on the motorways. 
Mr SPEAKER 
: Leave is sought to table that document. Is there any objection? There is objection.