Woods MeganCROWN MINERALS (PETROLEUM) AMENDMENT BILLSecond ReadingHon Dr MEGAN WOODS (Minister of Energy and Resources): I move That the Crown Minerals (Petroleum) Amendment Bill be now read a second time.I am very proud to rise in support of this important bill which contains amendments to the Crown Minerals Act 1991 to give effect to the Government's policy announcement on the future of offshore petroleum permitting. In April 2018 the Prime Minister announced that the Government was taking an important step to take action on climate change and begin a just transition to a low-carbon economy by halting the granting of any new offshore oil and gas exploration permits. This decision is about New Zealand's future for the next 10 years the next 20 years the next 30 years and the next 40 years.This bill is about futureproofing our economy. We know the world is changing. Placing all our economic eggs in the basket of fossil fuels is simply not a long-term strategy for economic development. It sets us up for economic shocks and we've seen in this country when rapid economic transformation takes place where that gets us. On this side of the House we will not let that happen. We will not let New Zealand become a place that pulls the rug out from beneath workers and communities because we did not have the courage to think about the future. That's why this is a long-term managed transition.This bill will not end oil and gas exploration nor will it halt existing production. Existing rights and existing privileges for permit holders are being preserved. In addition to support the just transition the Government has established the just transitions unit within the Ministry of Business Innovation and Employment (MBIE) to help prepare for a future that will look different than today. The team is already on the ground in Taranaki supporting local leadership to chart out a long-term course for the local economy beyond fossil fuels.This Government is supporting this transition. We're investing millions of dollars through the Provincial Growth Fund and we'll be investing millions more through the Green Investment Fund. Just this week we introduced the bill to put $1 billion into innovative Kiwi businesses through our research and development tax credit. That will support new energy resources and sources like hydrogen which will create jobs improve living standards and help us tackle climate change.I now want to talk about the select committee process for this bill. To those who argue that the process was too short or was inadequate I would like to point out that over 7000 submissions were received in the response to the Environment Committee's call for submissions. Over 7000 organisations and individuals made submissions and the vast majority of those submitters either supported the bill or felt that it did not go far enough. That is worth repeating: the vast majority of submitters either supported the bill or thought that it did not go far enough. I think this shows that we got the balance about right.The Environment Committee heard from submitters voicing their concerns around climate change and the need for New Zealand to take immediate action to reduce our greenhouse gas emissions. The committee heard about the opportunities the bill will create to help stimulate innovation and increase uptake in alternative energy sources and the committee heard about New Zealand's desire to show leadership in the global effort to address climate change—leadership that is particularly important for our Pacific neighbours. While the vast majority of submissions supported the bill or felt that it did not go far enough the Environment Committee also heard from submitters who had concerns. I would like to take this opportunity to address some of those concerns.The committee heard from submitters concerned about the impact of the bill on the economy. To those submitters I'd like to say that without this bill we would only be postponing and intensifying an inevitable economic shock. The long-term picture is like this: the world is changing. Climate change is happening and with that change our planet and our economies are changing. The world is racing to adapt and to stop its most damaging effects. This means that the same old ways of doing things don't work anymore. We cannot expect to rely on fossil fuels for jobs and for prosperity for ever. The world is moving away from them and we as a country have to be ready. If we don't change and if we keep relying on these fuels we're going to get left behind. We must have the courage to lift our sights beyond the three-year electoral cycle and to plan in the long term. To the submitters that were particularly concerned about the impact on communities in Taranaki I want to reiterate our reassurance that this Government has a long-term plan for economic growth in our regions. As part of that we've already started to invest in the regions through the Provincial Growth Fund in Taranaki. The Provincial Growth Fund has already earmarked more than $21 million in funding for the region including almost $1 million in support of developing hydrogen as a zero-emissions hydrogen fuel as well as support for other clean-energy technology projects. During the committee we also heard the tired old arguments—that I'm also hearing shouted out across the House—from the oil lobby that the only way to decrease global emissions is for us to continuously burn more and more carbon here in New Zealand. I'm sure we'll hear the Opposition continue to sing from the oil lobby's songbook today but the reality is the rest of the world is taking action on climate change. The MBIE's analysis makes very clear that any oil or gas from Block Offer 2018 would not come into the system until 2027 at the earliest. By that time major decarbonisation shifts will have occurred in the global economy as many countries work to meet their Paris Agreement targets. New technology such as battery storage and hydrogen will change the energy outlook. Jonathan Young: When's that going to happen? Hon Dr MEGAN WOODS: The overblown fear of carbon leakage is simply 20th century thinking in a 21st century world. To ask when that is going to happen shows how backward-looking the Opposition is. It is happening now. It is happening around the world. We are not talking about something in the never-never future; we are talking about a change that is happening in front of our eyes and one that the Opposition refuse to open their eyes to. But we need to get serious about planning for the next 30 years and we need to begin that now. As our Prime Minister Jacinda Ardern has said climate change is this generation's nuclear-free moment—our opportunity to once again lead the world to follow in the proud tradition of New Zealand as a bold visionary and progressive country and to begin the transition to a low-carbon economy that will create jobs and ensure prosperity. I am proud to commend this bill to the House.