5. Resource Management Act—Nova Energy Power Plant ApplicationJAMES SHAW (Co-Leader—Green) to the Minister for the EnvironmentResource Management Act—Nova Energy Power Plant Application5. JAMES SHAW (Co-Leader—Green) to the Minister for the Environment: Will he call in Nova Energy's application to build a new gas-burning power plant as a matter of national significance under the Resource Management Act 1991?Hon Dr NICK SMITH (Minister for the Environment): I am yet to make a decision or give consideration to calling in the particular application. I would note that Simon Upton the previous environment Minister did call in the Stratford gas-fired power station in 1993 but a significant change was made in the law in 2004 by the previous Government that specifically excluded the consideration of greenhouse gas emissions in respect of such resource consents. The last point I would make is that this Government introduced an emissions trading scheme (ETS) which currently applies a charge of $18.80 per tonne of greenhouse gas emissions. That discourages those power stations and actually the level of greenhouse gas emissions from the electricity sector is at a 20-year low because of the effectiveness of those policies.James Shaw: Is he aware that under section 142 of the Resource Management Act he can call in a project because of its impacts on New Zealand's international obligations including its commitments to reduce carbon emissions under the Paris Agreement?Hon Dr NICK SMITH: Yes. But the member also needs to be aware of the change that was made to the Resource Management Act in 2004 which specifically said that any air discharge of carbon dioxide in respect of climate change is specifically excluded from consideration under the Resource Management Act because of the fact that the emissions trading scheme imposes a cost on greenhouse gas emissions. The member also needs to note that our system of electricity does require backup for wind and hydro—and I would much rather that backup was an efficient gas-fired power station than the old Huntly power station because its emissions are about half.Sarah Dowie: What progress has this Government made in increasing the proportion of renewables in the electricity sector and how does this compare with previous Governments?Hon Dr NICK SMITH: Mr Speaker—[Interruption] Mr SPEAKER: Order! [Interruption] Order! To my learned colleague and Assistant Speaker I would be grateful for less interjection. Hon Dr NICK SMITH: I am very pleased to share with the House the progress on renewable electricity. Let me give you the numbers: in 2000 75 percent of New Zealand's electricity was renewable but after 9 years that had dropped to only 65 percent. In the 8 years that we have now been in Government it has actually improved from 65 percent to 81 percent—and is now at the highest level of renewables that our country has ever had. Richard Prosser: I raise a point of order Mr Speaker. Mr SPEAKER: Order! [Interruption] Order! Is this a point—[Interruption] Order! I have a point of order from Richard Prosser. Richard Prosser: If the Minister was quoting those figures from an official source I would ask that he table it. Mr SPEAKER: Was the Minister quoting from an official document?Hon Dr NICK SMITH: They are on the net.Mr SPEAKER: Thank you. James Shaw: Will Nova Energy's proposed new gas-fired power station increase or decrease New Zealand's greenhouse gas emissions?Hon Dr NICK SMITH: The nature of New Zealand's electricity system with its dependence on both hydro and wind does require that we have thermal backup. At the moment the bulk of that thermal backup is provided by the very old coal-fired power station at Huntly. If this new Nova station was to replace that coal backup with the latest technology of gas it would actually halve the amount of emissions per unit of electricity. That is an issue that is incentivised by the ETS—that discourages emissions with actually one of the highest ETS charges in the Western World now at $18.80. We think that is a more efficient way to discourage greenhouse gas emissions than the blunt tool of a yes or no on a resource consent. James Shaw: So then can he guarantee that if it is built Nova's new gas-fired power station will replace Huntly coal; and would it not be better for the environment if we were to replace Huntly coal with renewables rather than with another fossil fuel - fired power plant?Hon Dr NICK SMITH: There is a difference of view as to whether you run a command-and-control electricity system or a market electricity system. The Government's view is that you should have a market but that you should discourage thermal generation by imposing a charge. I note that New Zealand actually has one of the highest charges with the ETS price now being $18.80—James Shaw: I raise a point of order Mr Speaker. Mr SPEAKER: Order! [Interruption] Order! Point of order—James Shaw. James Shaw: Thank you Mr Speaker. My supplementary question was whether he would guarantee that one power plant would replace the other. He actually has not addressed that question. Mr SPEAKER: No that was the first question. The member actually asked two supplementary questions. He should have only asked one but he asked two and I think on this occasion the Minister addressed very definitely the second question that was asked. James Shaw: Given that last month he told my office that he had not received any information or advice on the plan to build this new fossil fuel power plant does he think that as environment Minister he is on top of all the relevant issues in his portfolio?Hon Dr NICK SMITH: There is a strict legal process around me using those call-in powers and that is why today when he asked me whether I am prepared to give an instant decision on whether I will be using those powers or not—when he asked the question no application had been lodged. James Shaw: Given that climate change is an issue of not just national significance but international significance should not all New Zealanders be able to have a say about the new fossil fuel power plant through a board of inquiry?Hon Dr NICK SMITH: The member should have a chat with his new-found friends in Labour who amended the Resource Management Act and specifically excluded the consideration of greenhouse gas emissions—discharges—in any resource consent application. James Shaw: So if New Zealand's international obligations under the Paris Agreement are not enough to make him call in this proposed power plant for a board of inquiry what would be enough?Hon Dr NICK SMITH: I will make a decision through the proper legal process on whether I will use my call-in powers on this application or not. But I would point out to the member that in New Zealand meeting its Paris climate change obligations the best tool to achieve that is through an effective emissions trading scheme. That is what numerous reports have stated. We can see the record under this Government of an increasing proportion of renewable electricity that shows that our policy approach is working. Actually greenhouse gas emissions from the electricity sector are at the lowest level in 20 years.