Young JonathanEconomic Development and Infrastructure SectorJONATHAN YOUNG (Chairperson of the Economic Development Science and Innovation Committee): Thank you Madam Chair. I'm very pleased to stand and speak on the Estimates for Vote Business Science and Innovation. We looked at the Commerce and Consumer Affairs Communications Economic Development Energy and Resources Infrastructure Regional Economic Development and Research Science and Innovation appropriations—all up around $2.2 billion dollars' worth of taxpayer funds being utilised. During that time we had a number of Ministers come and appear before us and present their views and also answer questions. It is no surprise that I might just focus in right now on the area of Energy and Resources. We had the Hon Megan Woods come and present to us on that particular area as well as Research Science and Innovation. Members of the Economic Development Science and Innovation Committee questioned the Minister particularly around the Government's decision around banning new offshore exploration permits. This occurred of course on 12 April. The Prime Minister announced that it would not issue further permits for offshore and oil exploration and usually this would be the role of Minister of Energy. A number of members questioned the Minister on this. We were very interested to hear her view and also I was interested to understand different aspects of energy security and the part that this plays in making energy affordable and also secure for New Zealand homes hospitals schools businesses and industries.The Crown Minerals Act requires the Minister of Energy to promote exploration with a significant purpose of reducing sovereign risk in order that investors will have confidence to invest. The Prime Minister and the Minister of Energy have in my view done exactly the opposite and there has been a chilling of investment and a chilling of confidence. This was one of the concerns that the committee has had as well as the Opposition and no doubt many people throughout the country. The decision was a surprise here and abroad especially since the Prime Minister said on 19 March—what I'm pointing out and this is regarding the block offer that is very much part of the regime that the Minister Megan Woods is responsible for. The Prime Minister said What I'm pointing out is that every Government around this time of the year actively considers how it will manage block offers and that's what we're doing and that's going to take weeks maybe months." It was only a few short weeks later that the announcement was made and to say that it was signalled is probably a stretch. In fact the Minister at the Estimates hearing did say—and she finally acknowledged—that the Government had not consulted the industry but she did say its intentions had been signalled. You would have to say that that was a surprise to just about everybody in the industry. And you know I think it's important—CHAIRPERSON (Hon Anne Tolley): Order! I'd just like to remind the member that he is chair of the select committee reporting on the select committee's views during the appropriations considerations. JONATHAN YOUNG: Yes indeed and even though I do refer to some aspects of the past they were the context by which questions were asked of the Minister.CHAIRPERSON (Hon Anne Tolley): You just need to tie them back into your select committee.JONATHAN YOUNG: Indeed—indeed. So we looked at this particular area. We looked at sources and security of electricity supply. This is very important for New Zealanders. I'm sure the Minister would agree to this as well. That's one of her responsibilities: to ensure that there is security of supply as she reiterated to us regarding the electricity price review—that making electricity prices fairer for people and affordable is very important as well. I was concerned to hear that in terms of the Government's target for 100 percent renewable generation even though there was this decision made on 12 April there is a need stated by MBIE and also by the Minister to have a forward reliance on gas. Therefore the question was asked in terms of enabling this hydrocarbon industry to be accepted in the future what would it require? I proposed a question and the question was simply this: if they could become a net zero carbon industry through different technologies and through afforestation—forests that perhaps they even own or lease themselves—would this industry that is so essential to New Zealand's energy security be an acceptable industry to the Government? The answer was no. I am confounded by that answer and I think that was one of the big surprises that I came to hear in that hearing because we do have a battle against emissions not an industry."