Fitzsimons Jeanette: Questions for Oral Answer — Questions to Ministers 
Fitzsimons Jeanette: Questions for Oral Answer — Questions to Ministers 
[Volume:627;Page:21822] 
3.  
JEANETTE FITZSIMONS (Co-Leader—Green) 
 to the  
Minister of Energy 
: What analysis if any has the Government done on the impact of rising oil prices on New Zealand? 
Hon TREVOR MALLARD (Minister of Energy) 
: 
 Ministry of Economic Development officials regularly monitor the price of New Zealand’s crude oil imports and also New Zealand prices for petrol diesel and other oil products and report those prices and trends to me. In the current energy-modelling work carried out by my officials the oil price assumptions being used are considerably higher than the 2003 energy outlook and reflect current thinking. Although Treasury is not currently undertaking any analysis on the impact of rising global oil prices on the New Zealand economy each economic forecast that Treasury prepares incorporates all the information available at the time including the most recent developments in oil prices. 
Jeanette Fitzsimons 
: Does the Minister stand by his ministry’s view: “It does not foresee a resource-driven crisis in oil supply in the foreseeable future.” given today’s statements by the National Australia Bank that there is considerable opportunity for the oil price to exceed $60 a barrel and by OPEC that it has “limited means to tame the market as most producers are already pumping flat-out”? 
Hon TREVOR MALLARD 
: The advice that I have received does not quite back up what the member is suggesting. It is that there are two main factors around the current very high oil prices. One of them is in the area of current supply issues—actually getting oil out of the ground in some places where it has already been found. The other factor has to do with what might be described as the global geopolitical situation—areas that the Minister of Foreign Affairs and Trade would be more aware of especially in the Middle East—which is certainly hampering some supply. 
Larry Baldock 
: Has the Minister seen the statement printed in the  
AA Advocate  
that the end of a world based on cheap oil was nigh that oil production would reach its peak within a few short years that we would be obliged to radically rethink not only the global economy but the capitalist ethos itself and that the Labour Party was the only other party to acknowledge the fact of peak oil though it could not afford to acknowledge how close it was for fear of scaring the markets; if so would he consider that the author of those statements Jeanette Fitzsimons would be a suitable Minister of Energy for this country? 
Hon TREVOR MALLARD 
: Picking the first and last questions no. 
Tariana Turia 
: What strategy does the Government have in place to inform the public of the issues related to oil dependence and what risk management strategies are being developed to reduce the impact of peak oil? 
Hon TREVOR MALLARD 
: A person would have to not read the papers or look at television not to be aware of the fact that at some stage—and there is clearly a debate over when—peak oil will occur. I know that the International Energy Agency has a range of forecasts. I think its mid-range forecast is 2028 to 2032 and its worst-case scenario is 2013 to 2015. So there is a range of forecasts. Clearly the agency’s optimistic scenario is even further out. 
Jeanette Fitzsimons 
: Does that reply indicate that the Minister has now revised his prediction that the best estimate of when oil supplies will peak is 2037; if so does he base that revised estimate on the position of the International Energy Agency which has changed its position from saying that 2037 is a mid-point to saying now that the peak will be some time between 2013 and 2037? 
Hon TREVOR MALLARD 
: I think the member—albeit I am sure with good intentions—has misinterpreted those figures. Even so I think the general feeling is that there are some better figures than those of the International Energy Agency. 
Jeanette Fitzsimons 
: When will the Minister introduce energy performance standards for motor vehicles to protect people from buying vehicles that will be too expensive to run in the future as provided for in the Energy Efficiency and Conservation Act? 
Hon TREVOR MALLARD 
: There are a number of steps to be taken before that happens. But I think people should be warned—people should be aware—that the price of fuel will in the longer term continue to go up and that looking at alternative sources of fuel would be a good idea. If more members followed the habit of the member’s bench mate and used bicycles that would help as well. 
Jeanette Fitzsimons 
: What has the Minister done—or what if anything is he planning to do—to fulfil his responsibilities under section 7(d) of the Energy Efficiency and Conservation Act 2000? 
Hon TREVOR MALLARD 
: I do not have that section of the Act with me at the moment. Being a Minister in charge of dozens of Acts I cannot recall every particular section immediately. 
Jeanette Fitzsimons 
: I seek leave to table section 7 of the Energy Efficiency and Conservation Act which requires the Minister to promote “practices and technologies that further energy efficiency energy conservation and the use of renewable sources of energy …”. 
Madam SPEAKER 
: Leave is sought to table that document. Is there any objection? Yes there is objection. 
Rt Hon Winston Peters 
: Would there be any significant savings if for example the Greens did not have a member of Parliament—namely Rod Donald—living in Christchurch yet having an electorate office in Nelson miles away from where he lives to which he freely and gaily travels at taxpayers’ expense? 
Rod Donald 
: I raise a point of order Madam Speaker. 
Madam SPEAKER 
: That matter is outside the scope of the original question. 
Rod Donald 
: I have not had an electorate office in Nelson since 1999. 
Madam SPEAKER 
: That is an interesting point of information but the question was outside the scope of the original question.