Bridges Simon: Energy (Fuels Levies and References) Amendment Bill — Third ReadingText is incorporated into the Bound VolumeBridges Simon: Energy (Fuels Levies and References) Amendment Bill — Third Reading[Sitting date: 17 February 2015. Volume:703;Page:1643. Text is incorporated into the Bound Volume.]Hon SIMON BRIDGES (Minister of Energy and Resources): I move That the Energy (Fuels Levies and References) Amendment Bill be now read a third time. As a member of the International Energy Agency New Zealand has a treaty obligation to contribute to global oil security by holding oil stock equivalent to 90 days of net imports. The International Energy Agency system helps to protect New Zealand and its trading partners from the economic harm that could result from a sudden increase in oil prices. Oil security is also closely linked to security generally and oil security is a key driver of the foreign and security policies of many OECD countries. The stockholding obligation helps to mitigate the market power of large oil-producing nations and is an important contribution to global oil security.It is also important for New Zealand’s reputation internationally that we fulfil our obligations. This bill expands the purpose of the petroleum or engine fuel monitoring levy under the current Act to include the cost of meeting this important oil stockholding - treaty obligation. In doing so it will provide a sustainable funding source and an enduring financial commitment to global oil security that will ultimately benefit New Zealanders with a more secure supply of transport fuels. The bill moves the cost of maintaining the oil security system away from general taxation and on to those consumers who benefit from it. The bill also introduces greater flexibility in the setting of levy rates and regulations which I expect will come into force later this year.A secure supply of energy is critical to businesses and consumers and is an important part of the Government’s Business Growth Agenda. This bill is the latest in a series of actions that this Government is taking to lift oil security. Encouraging domestic oil production also has the potential to help to continue offsetting our stockholding obligation. This Government is committed to realising our abundant energy resources potential to help grow our economy to increase exports and to create jobs while ensuring that we develop these resources in a safe and environmentally responsible way. The International Energy Agency expects oil and natural gas will continue to account for around half the world’s energy needs until at least 2035. Our approach to our energy future understands this reality. Our hard work in this area has delivered significant levels of activity here by established international players. Spending on exploration development - related activities in New Zealand over the past 2 years has totalled nearly $3 billion.A key to tipping the balance of investment decisions in our favour has been better data. Historically the Government’s focus has been on purchasing data and on targeting it to the market. This has represented a significant albeit costly investment. Last year we changed the data confidentiality provisions in the Crown Minerals Act. This has enabled companies with multiple clients to acquire data and then to onsell it to industry. As a result more data has been acquired with the industry bringing tens of millions of dollars into the mix. In the last 18 months 26000 square kilometres of data has been acquired in this way at no cost to Government.Other work being undertaken to help improve New Zealand’s oil security includes the development of a new oil contingency handbook which outlines responsibilities and procedures to be followed if there is an oil supply disruption; the formation of an oil security working group of all relevant departments and industry participants; a review of regional oil storage and capacity information; and through the health and safety reforms the development of a better understanding of existing hazard prevention and response procedures in the downstream oil sector. This bill represents a significant and more equitable response to our international obligations.Before I conclude I would like to congratulate Dr Fatih Birol on behalf of the New Zealand Government and Parliament on his election by consensus yesterday I think as the new executive director of the International Energy Agency. In my view Dr Birol has the best long-range perspective on energy matters in the world and his election ensures that the world’s premier energy agency is in very good hands indeed. I commend this bill to the House.