Bakshi Kanwaljit Singh: Energy (Fuels Levies and References) Amendment Bill — Third ReadingText is incorporated into the Bound VolumeBakshi Kanwaljit Singh: Energy (Fuels Levies and References) Amendment Bill — Third Reading[Sitting date: 17 February 2015. Volume:703;Page:1657. Text is incorporated into the Bound Volume.]KANWALJIT SINGH BAKSHI (National): Thank you for the opportunity to speak during the third reading of the Energy (Fuels Levies and References) Amendment Bill. The fact is that each nation needs to ensure that it can cater to its energy demand without being reliant on others. We in New Zealand too would like to be energy independent in case there is some kind of disruption in supply. This National-led Government wants to ensure that New Zealand’s ability to deal with any disruption internationally gets enhanced.New Zealand’s oil demand has grown steadily since the mid-1980s and has been driven by the demand for transportation fuel such as petrol diesel and jet fuel. Along with the encouraging further exploration and production of oil in New Zealand we can also make oil imports from many secure countries. As New Zealand is too small to mitigate international oil supply disruption on its own the collective arrangement under the International Energy Agency is our best option for dealing with such disruptions.New Zealand currently fulfils its oil stocking obligation by entering into the ticket contract with oil companies and other traders. In 2013 New Zealand successfully tendered for a ticket for about 150000 tonnes of crude oil and refined petroleum products and secured two new Government to Government agreements with Denmark and Sweden increasing the pool of potential suppliers we can look to. When we returned to Government we made a promise to improve New Zealand’s conditions for businesses whether small or large. Like any competitive nation if we are serious about a more competitive and productive economy we need to ensure that we have energy resources to sustain. As these are matters of national importance we want to put forward this legislation to the House which will ensure we are able to fund our energy requirements in a sustainable manner. We want to ensure that New Zealand sticks to its oil stockholding under the International Energy Agency’s obligations.The International Energy Agency provides a critical mechanism for conditional international energy responses among 29 member countries to oil market disruption as well as timely market data. We also want to ensure that our stockholdings are based on the user-pays model. The purpose of having stockholdings is to create balance against the power of large oil-producing nations as well as creating global oil security. Furthermore we are part of the International Energy Agency. We have mitigation measures in place to protect New Zealand and its trading partners from economic harm as a result of volatile situations. With the demand for energy resources such as oil increasing day by day it is vital to ensure that our sources will import oil and that agencies are secure. Of course as a responsible Government we are taking every step to facilitate exploration for oil and gas locally.We also continue to advocate energy efficiency. However as I said earlier energy pricing and consumption are both volatile. The current fuel monitoring levy charged by the Government covers the costs of monitoring fuel quality and the cost charged by the International Energy Agency. By way of legislation we are trying to ensure that the levy fulfils the Crown’s oil stockholding obligation with the International Energy Agency. The purpose behind this as mentioned earlier is to create sustainable funding that is paid for by the users of the service.The last context is to fulfil New Zealand’s financial commitments for ensuring global oil security. By doing so we are securing constant supply of transport fuel. One side benefit the bill also delivers is that those who choose to use public transport will end up paying less compared with those who continue to drive their cars. So apart from adding the New Zealand energy security the bill protects the environment too.The bill is now in its third reading. It was considered by the Commerce Committee of which I am honoured to be a member. The committee has made minor amendments to the bill which we firmly believe will help New Zealand.One important point I would like to share with those who may contemplate opposing this bill is that New Zealand is part of the international community. By not complying with the International Energy Agency’s obligations we are risking our reputation. Further any nation State’s foreign policy is driven by the need for energy. A decision needs to be made keeping in mind our energy needs. By keeping us as part of an international agreement we are being realistic in recognising that as a small nation State we may not be in a position to mitigate any disruption in the international oil supply. However by being a part of a collective agreement we have chosen the best possible option of ensuring that we are able to meet our energy needs.The need for the legislation arose from the 2012 review that this National-led Government undertook. Based on the review we decided that the most cost-effective way for New Zealand to meet its obligation was to implement the user-pays model. Apart from being prepared for international volatility in terms of oil and gas the Government has got the Business Growth Agenda and the Petroleum Action Plan to facilitate and encourage local production. The amendments made by us to the Crown mineral regime and the block offer process will continue to encourage New Zealand to look to our petroleum potential.This National-led Government is committed to realising our abundant energy resources potential to help our economy increase exports and create jobs while ensuring that we develop these resources in a safe and environmentally responsible way. As a member of the Commerce Committee I am grateful to the officials and the submitters who contributed to this legislation. As I said in my speech earlier these are matters of national importance and every New Zealander should engage in them. It is only due to the feedback that we received from all the submitters that we can ensure that this sound legislation can be put in place.Finally all of us have said earlier that this New Zealand-led Government is serious about ensuring that New Zealand’s economy and its people continue to grow and enjoy the lifestyle that we have always had. This bill is another example of positive legislation that we have for New Zealand and its citizens. With these words I commend this bill to the House.