Bayly Andrew: Energy (Fuels Levies and References) Amendment Bill — Third ReadingText is incorporated into the Bound VolumeBayly Andrew: Energy (Fuels Levies and References) Amendment Bill — Third Reading[Sitting date: 17 February 2015. Volume:703;Page:1664. Text is incorporated into the Bound Volume.]ANDREW BAYLY (National—Hunua): I am very pleased to be able to rise to support the Minister of Energy and Resources in this third reading of the Energy (Fuels Levies and References) Amendment Bill. For me it is a very easy decision and I note that it is great that a number of members from the Opposition do in fact support the thrust of this bill including the members from Labour and interestingly from the Greens which is fabulous. As many of you have noted previously this bill is all about New Zealand meeting its international obligations. We cannot and should not contemplate welshing on our obligations as a State. You do not have to go back too far in history to see when New Zealand was worried about having sufficient physical quantities of oil.At this juncture I want to acknowledge the great New Zealand oil industry most of it centred on the Taranaki region. This region is generating significant amounts of foreign earnings and it is to be commended. That industry generates a lot of jobs and supports a growing New Zealand economy. However although our products that we produce are of high value they are not the right type. That is why we need to look at how we offset that. This bill is about doing that. We need to address the imbalance. The sheer fact is that we need to look for commitments around protecting 150000 tonnes of crude oil and refined products every year.The smart thing about this bill is that we are actually entering into good and innovative procurement processes. Entering into ticketing arrangements means that we get the oil requirements that we need in a proper manner. We have also set in place physical back-to-back arrangements with State Governments and I note that we previously have worked with the Governments of Denmark and Sweden. This is all about reducing our actual risks around these supplier arrangements which is good business.Specifically the bill covers three aspects. First of all it provides for the purpose of the fuel monitoring levy to be extended to quite legitimately cover or meet the Crown’s compliant costs. Secondly it removes the present maximum levy. Thirdly it allows for the levy rate to be set by an Order in Council. Personally I cannot contemplate what would happen if New Zealand did not have sufficient oil reserves. As a Government we have been increasingly focused on other forms of energy. I do note the previous speakers who have talked about the wonderful creative New Zealanders who have been looking at alternative biofuels whether they have been ethanol or tallow based or the good work that has been going on at Scion around timber products. All that is exciting stuff and it shows the dynamism and the inventiveness of New Zealand scientists. But in essence this is about protecting the fuel that we require for our transport industry which is still significant and fundamental. If we do not pass this bill and put in place the adequate measures that we have talked about today then we are undermining the essential element for the well-being and continued growth of the New Zealand economy. I fully commend this bill to the House.