Smith Nick: Exclusive Economic Zone and Continental Shelf (Environmental Effects) Bill — First Reading 
Text is incorporated into the Bound Volume 
Smith Nick: Exclusive Economic Zone and Continental Shelf (Environmental Effects) Bill — First Reading 
[Sitting date: 13 September 2011. Volume:675;Page:21214. Text is incorporated into the Bound Volume.] 
Hon Dr NICK SMITH (Minister for the Environment) 
: 
 I move  
That the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Bill be now read a first time. 
 I intend to move that the bill be referred to the Local Government and Environment Committee. This bill is an integral part of the Government’s blue-green programme to strengthen New Zealand’s environmental and resource management systems. This significant bill puts in place a system of environmental protection for the ocean beyond the 12-mile territorial sea covering the 400 million hectares in the exclusive economic zone and the 170 million hectares in the extended continental shelf. 
This bill recognises the opportunities and responsibilities that go with New Zealand being a significant maritime nation. The ocean area over which we have jurisdiction is 20 times our land mass and is the fourth-largest of any nation. The bill also recognises that our ocean resources are coming under increased development pressure from a growing global population the depletion of resources on land and advances in technology that are making the use of ocean resources more possible. 
I acknowledge the support of the Maori Party the ACT Party United Future and the Green Party for this important bill. Such a broad consensus shows that this is a bill whose time is due. National proposed this reform from Opposition as part of our blue-green agenda announced in 2006. We have revised these proposals with the support of officials. We sought further independent advice after the Gulf of Mexico disaster to ensure that we were putting in place the best system possible for environmental protection. 
This legislation will manage the adverse environmental effects of activities in the exclusive economic zone which are currently unregulated. That includes the construction of petroleum platforms seabed mining possible aquaculture developments carbon capture and storage marine farming and energy generation proposals that may evolve. The legislation will do this by providing a regulatory framework similar to the Resource Management Act for classifying certain activities as permitted discretionary or prohibited. This classification will depend on the environmental effects of those activities. The consent function will rest with the Government’s new Environmental Protection Authority. 
For discretionary activities consents will be needed. All such applications will need to be publicly notified and will require an environmental impact assessment and take account of both the receiving environment and the cumulative effects. We are also providing a mechanism for effectively dealing with consents that straddle over the exclusive economic zone and the territorial sea. This new legislation will not duplicate the existing regulatory processes for fishing governed by the Fisheries Act or for shipping under the Maritime Transport Act. It has also been carefully designed to ensure it is consistent with New Zealand’s international obligations. 
There will be a transitional period once the bill becomes law. The Government will require those already undertaking discretionary activities in the exclusive economic zone and the extended continental shelf to apply to the Environmental Protection Authority within 6 months of the legislation coming into force and they may continue those activities until those consent applications are decided. Existing oil and gas installations and associated infrastructure will be exempt on the basis that they are already operational. Existing licences for mineral prospecting will also be exempt on the basis that those licences contain environmental controls. 
There will of course be an intervening period as this bill travels through the legislative process and comes into effect as is the Government’s intention on 1 July 2012. That is why the Government is also putting in place interim measures to ensure a smooth transition to the new regime. 
Environmental impact assessments will be required and undertaken for oil and gas drilling operations. Operations will be required to comply with the latest beefed-up drilling safety rules which were developed in the United States following the inquiries into the Gulf of Mexico disaster. These measures complement the recent announcements made by the Minister of Labour on the establishment of a high hazards unit with four new inspectors specifically for the petroleum industry. The Minister of Transport is also reviewing the liability insurance requirements for the industry and is looking to raise that insurance level above the current $30 million. 
Some have advocated that we should have just extended the Resource Management Act out beyond the 12-mile territorial sea. This would have been too cumbersome. It would have required an extensive planning regime that is out of proportion with the likely scale of activities out in the exclusive economic zone. Others have questioned whether the Environmental Protection Authority should be the consenting authority and have said that it should instead go to regional councils. The reality is that these are highly specialised skills and the Government’s view is that once one goes beyond that 12-mile limit these are really national issues and it is more efficient for it to be done by the Environmental Protection Authority. 
The Government views New Zealand’s “clean green” brand as being important but this does not mean that in our ocean environment we should ban everything any more than we ban everything in our land environment. It does mean ensuring that we have world’s best practice environmental standards and systems and that is what this bill introduces. 
This bill is consistent with our broader Government agenda of ensuring we grow the economy but doing it in an environmentally responsible way. I acknowledge the support of groups like the Environmental Defence Society and the Petroleum Exploration and Production Association which have welcomed this move as they know it will provide better environmental protection as well as certainty of process for those who look to develop the largely unrealised potential that lies in New Zealand’s exclusive economic zone and extended continental shelf. It will help to manage the adverse effects on the environment while allowing for the sensible development and community engagement in decision making. 
New Zealand has been aware of the need for this legislation for a long time and this bill represents the culmination of years of work. If we do not act we risk harm to the marine environment and in my view there is a reputational risk for our country in respect of not having world’s best practice in the exclusive economic zone. This bill is part of a wider body of blue-green reforms already instigated by this Government to ensure that we have world-class environmental management systems. The time for a robust environmental management regime of our vast oceans has come. I commend this bill to the House.