Bridges Simon: Third Readings —Text is incorporated into the Bound VolumeBridges Simon: Third Readings —[Sitting date: 16 April 2013. Volume:689;Page:9358. Text is incorporated into the Bound Volume.]Hon SIMON BRIDGES (Minister of Energy and Resources): I moveThat the Crown Minerals Amendment Bill the Conservation Amendment Bill (No 2) the Continental Shelf Amendment Bill the Reserves Amendment Bill and the Wildlife Amendment Bill be now read a third time. These changes are central to this Government’s work programme to improve the regulatory system for the petroleum and minerals sectors in New Zealand. This legislation delivers on the objectives of the Crown minerals review to encourage the development of Crown-owned minerals so that they contribute more to New Zealand’s economic development; to streamline and simplify the regime where appropriate ensuring that it is in line with the regulatory reform agenda and making it better able to deal with future developments; and to ensure that better coordination of regulatory agencies can contribute to stringent health safety and environmental standards in exploration and production activities.The petroleum and minerals sectors are already important contributors to the New Zealand economy. Mining is the backbone of many local economies in which they operate. For example the petroleum industry in Taranaki directly employs almost 4000 people with another 4000 in supporting sectors and contributes around $2 billion—probably more—in local GDP. Crude oil is New Zealand’s fourth-largest commodity export worth around $2 billion a year. But the potential for growth is even greater. New Zealand has extensive mineral wealth and 18 petroleum basins. This legislation sends a clear signal to investors that this is a supportive regime that requires high standards ofits operators. It is central to changes that will allow us to realise the tremendous opportunities that this high-value sector offers.The Crown Minerals Amendment Bill states that its purpose is to “promote prospecting for exploration for and mining of Crown owned minerals for the benefit of New Zealand.” It also emphasises the importance of good industry practice in relation to activities undertaken by permit holders under the Act. Among other things this incorporates the ongoing oversight of compliance with health and safety legislation.There is a lot in this legislation that will allow regulators to focus on the activities that really matter and will streamline and simplify processes for the hundreds of permits for which the risk profile and potential return to the Crown are lower. The changes introduce a distinction between tier 1 and tier 2 permits. A streamlined regime for tier 2 permits will provide administrative benefits for Government and reduce compliance costs for permit holders. Tier 2 operators will be required to report on a more limited range of matters less frequently without creating greater risks to the environment or health and safety or affecting the financial return to the Crown. This will enable New Zealand Petroleum and Minerals to focus on the smaller number of high-value complex tier 1 exploration and mining operations. Combined with the improved capacity within New Zealand Petroleum and Minerals this increased oversight will seek to ensure Crown-owned minerals are managed in a way that both maximises returns and ensures that activities are undertaken to the standards we expect.These bills recognise that it is important that various regulatory functions remain distinct but the system as a whole needs to work seamlessly across Government. This differs from the approach taken under the Act to date which creates strict separations between the allocation health and safety and environmental management functions. The report of the Royal Commission on the Pike River Coal Mine Tragedy underlined the importance of the system working as a whole to assimilate information from various sources and take this into account in permitting decisions and ongoing oversight of all activities under a permit. These bills establish a range of measures to ensure that all regulators share information and have an opportunity to discuss activities under permits with permit holders on a regular basis. I am encouraged by the steps regulators have already taken to work together more effectively in this area.Of course this legislation is not a substitute for health and safety or environmental regulation. This Government is continuing work on all fronts to ensure that the industry is bound by rules that appropriately reflect the risk profile associated with it.The wider work programme to implement the recommendations from the Royal Commission on the Pike River Coal Mine Tragedy’s report development of new regulations for petroleum drilling review of minimum insurance requirements reform of the Resource Management Act and development of regulations under the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act represent an active reform agenda that demonstrates this Government’s commitment to ensuring fit for purpose regulatory settings for this sector.The minerals and petroleum sectors are appropriately subject to a raft of legislative requirements. The multiple legislative reviews affecting the sector are designed to ensure New Zealanders have confidence in the standards that the sector is expected to operate to which is critical for the future viability and public acceptance of further growth of the sector.Finally I would like to mention the additional provisions to create new offences for interference with offshore activities. Such protest actions can impose significant costs on companies carrying out legitimate activities under permits and can create very serious health and safety risks. This amendment fills a gap in the existing legal framework and provides clear expectations and penalties for the new offences.Assurance that lawful activities can be carried out without interference is a necessary part of establishing a predictable investment climate without avoidable risks.The Crown Minerals Amendment Bill is key to realising the potential value of the petroleum and mineral sectors. It provides clear expectations on permit applicants and permit holders and embeds better coordination processes across regulators. It signals a more flexible approach to permit management that recognises the risk and return profile of each operation. I commend the bills to the House.