Twyford PhilEXCLUSIVE ECONOMIC ZONE AND CONTINENTAL SHELF (ENVIRONMENTAL EFFECTS) AMENDMENT BILLThird ReadingHon PHIL TWYFORD (Minister of Housing and Urban Development) on behalf of the Minister for the Environment: I move That the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Amendment Bill be now read a third time.The bill will correct an oversight in the legislation that manages the effects of activities in our offshore environment and ensure that the cost recovery regime can operate fairly. A new board of inquiry process for deciding certain marine consent applications was added to the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act—the EEZ Act—in 2017 through the Resource Legislation Amendment Act. An additional provision is needed now to allow recovery from an applicant of board of inquiry costs. That power was not created at the time of the amendment which means that those costs currently fall to the Crown.This bill will give effect to the intended policy by providing for cost recovery in respect of boards of inquiry. The bill was examined by the Environment Committee in a short select committee stage and I would like to acknowledge their consideration and the scrutiny that they provided to this piece of legislation.I would also like to acknowledge the New Zealand Law Society who wrote to the Environment Committee and to the Minister for the Environment concerning this bill. Their correspondence included among other things a suggestion to clarify that existing cost recovery provisions in the EEZ Act will continue to apply and that suggestion was reflected in a drafting change made by Supplementary Order Paper 48 at the committee stage.This bill is urgent technical and intended to give effect to existing policy settings. It was not considered appropriate to contemplate broader policy changes in relation to the bill. A more comprehensive review of the resource management system will be considered next year.The EEZ Act regulates activities in New Zealand's exclusive economic zone and extended continental shelf in order to promote sustainable management of natural resources and protect the environment from pollution. The case by case consideration of applications for marine consent for discretionary activities is an important function in achieving that purpose. This bill will now align the cost recovery model for EEZ boards of inquiry with other processes under both the EEZ Act and the Resource Management Act. The bill will provide for the Minister for the Environment to recover from the applicant the actual and reasonable costs of a board of inquiry appointed to decide an application for marine consent.It's important that the Government acts fairly and transparently when recovering costs. The bill sets out criteria that the Minister must have regard to when recovering costs from an applicant and requires the Minister to provide an estimate of the costs likely to be recovered at the request of the applicant. Board of inquiry costs will not be recovered for applications made before the amendment comes into force.The Environmental Protection Authority (EPA) is the key agency that manages marine consent processes. This amendment will enable the Minister to delegate cost recovery and the provision of estimates to the EPA. It will provide that the costs of a board of inquiry are a debt due to the Crown recoverable by the EPA in a court of competent jurisdiction. The amendment will not affect the EPA's existing power to recover the costs of its functions under the Act.In short the change will ensure that the marine consent process for all activities results in a private cost just as it results in a private benefit and I support the third reading of this bill.