Hughes Gareth: Questions for Oral Answer — Questions to MinistersText is incorporated into the Bound VolumeHughes Gareth: Questions for Oral Answer — Questions to Ministers[Sitting date: 05 June 2013. Volume:690;Page:10732. Text is incorporated into the Bound Volume.]12.GARETH HUGHES (Green) to theMinister of Energy and Resources: Does he agree with the OECD which recommends the removal of tax concessions for petroleum exploration; if not why not?Hon SIMON BRIDGES (Minister of Energy and Resources): No I do not. I do not believe that the OECD gives sufficient weight to the challenge of developing New Zealand’s petroleum resources or to this Government’s commitment to ensuring that we receive a fair return from petroleum resources. For the record I am not aware of another industry in New Zealand that contributes as much of its profits as a proportion to the Crown—42c in every $1; $700 million to $800 million a year. That is something we should celebrate.Gareth Hughes: How is it that the Government can find over $46 million in support for an already wealthy industry to extract more fossil fuels to lead to more pollution and it can muster only $1.9 million to feed our poorest kids breakfast?Hon SIMON BRIDGES: The amount the member talks about is exceptionally small in comparison with the $700 million to $800 million per annum we currently receive in taxes and royalties. As I say I would like the member to see whether he can think of another industry that delivers that sort of money as a proportion of its profits to the taxpayer’s coffers.Gareth Hughes: So what is the Minister’s rationale for supporting tax breaks for the profitable petroleum sector and not similar tax breaks for industries like maybe the clean-energy industry which international studies show has got four times the job-creating potential and even agencies like PricewaterhouseCoopers say could be a potential $22 billion industry for New Zealand?Hon SIMON BRIDGES: Well there is no rush. I can tell the member that we met last week with the head economist of the International Energy Agency the premier energy agency in the world and the first thing he did was to congratulate us on being world leaders when it comes to fossil fuels subsidy reform—and we are world leaders in that area.Te Ururoa Flavell: Kia ora tātou. Is he aware that Ngāti Kahungunu wrote to the Ministry of Business Innovation and Employment in January 2013 supporting the recommendations made by the Waitangi Tribunal relating to the petroleum management regime; if so what efforts will he make to follow their call for adequate communications standards to be enforced by the Crown between petroleum companies and iwi and hapū?Hon SIMON BRIDGES: I am aware of that letter; indeed I have met with that iwi a couple of times in Hawke’s Bay in relation to issues that they have about the sector. I can tell the member that when we reformed the Crown Minerals Act earlier this year we formalised consultation processes between the Crown and iwi and indeed between iwi and industry. Now it is the case that industry in relation to tier 1 permits at least must supply annual reports to the Government on its engagement with iwi or hapū whose rohe intercepts the area of the permit or who otherwise may be directly affected by the Crown. Of course what is also true is that this is an industry that can deliver great gains and jobs for Māori in places like Northland and the East Coast and bring them home from places like Western Australia and Queensland. So I think the benefits from this industry can be felt disproportionately and favourably for Māori and iwi.Gareth Hughes: In regard to the last answer does the Minister want New Zealand to walk the walk on international fossil fuels subsidies and will he recommend the removal of all tax breaks for petroleum exploration given that the OECD says they counteract New Zealand’s efforts to address global climate change and distort investment decisions away from more sustainable sources of growth?Hon SIMON BRIDGES: We walk the walk and we talk the talk in a world where there are hundred and hundreds—probably trillions—of dollars of subsidies for fossil fuels. The fact of the matter is we are one of the cleanest greenest little countries in the world.