12. Offshore Oil and Gas Rigs—Decommissioning CostGARETH HUGHES (Green) to the Minister of Energy and ResourcesOffshore Oil and Gas Rigs—Decommissioning Cost12. GARETH HUGHES (Green) to the Minister of Energy and Resources: Firstly happy 32nd wedding anniversary today. Can she confirm that the Crown is liable for 42 to 48 percent of the cost of decommissioning offshore oil and gas rigs through tax and royalty rebates and if so what is the estimated cost to the Crown arising from rigs that will potentially be decommissioned?Hon JUDITH COLLINS (Minister of Energy and Resources): I have to say I cannot claim full credit for 32 years of marriage; I did share that with my husband—thank you so much though. I can confirm that the Crown will typically rebate between 42 to 48 percent of decommissioning costs to petroleum producers and the Ministry of Business Innovation and Employment has estimated the total cost to the Crown for all fields is between $800 million and $855 million over the next 25 or so years and that is compared with the $3.2 billion in royalties and levies that petroleum producers have paid to the Crown in the last 9 years—a figure that does not even take into account the up to $400 million paid in tax each year.Gareth Hughes: Is it fair that New Zealand has the fourth-lowest tax plus royalty rate in the world but subsidises almost half the cost of decommissioning oil rigs which we just heard could be up to $885 million?Hon JUDITH COLLINS: I would disagree with the member there because the information I have is that the royalties are actually at a particular level to take into account decommissioning costs in the future and when you consider that since 2008 the Crown has received $3.2 billion in royalties and levies plus tax plus wages plus a contribution of $2.5 billion every year to GDP plus the employment of 4600 people directly and close to 12000 people indirectly in very highly skilled highly paid jobs—I think we are doing pretty well.Gareth Hughes: Given that her colleagues have repeatedly claimed to be leading the international movement to phase out fossil fuel subsidies how does it look that she is allowing taxpayers to shoulder almost half the cost of decommissioning oil rigs—up to $885 million?Hon JUDITH COLLINS: I think the member has not listened quite carefully enough to one of my answers there—that is that actually the royalties include the cost of decommissioning. So you could say that what we are doing in the royalty payments and levies is we are getting them to pay up front for the cost of the decommissioning.Gareth Hughes: Given that the Minister will announce the next oil and gas exploration block offer tomorrow at the petroleum conference in New Plymouth will she consider amending the regulations so that New Zealanders do not have to pay or miss out on revenue up to $885 million to clean up after the oil industry has made its profit?Hon JUDITH COLLINS: What we could do of course if that member has his way is miss out on the $3.2 billion in royalties and levies plus the $400 million in tax paid each year plus all of the wages and everything else that comes from the industry if we closed down the industry that has been part of New Zealand since about the 1860s and which is a huge contributor to our economic worth. I would remind that member that even at the worst times of the oil crisis in the last year this has been the biggest export item to Australia in terms of wealth for the last 20 years. It is a huge part of our economy and needs to be encouraged in an environmentally safe way.Gareth Hughes: I raise a point of order Mr Speaker. The question was not about Green Party policy. It was about whether she would consider amending regulations—Mr SPEAKER: Order! No. If the member is arguing that the question has not been addressed then I think on this occasion it has been addressed clearly not to the member's satisfaction.