Delahunty Catherine: Questions for Oral Answer — Questions to Ministers Questions to MembersText is incorporated into the Bound VolumeDelahunty Catherine: Questions for Oral Answer — Questions to Ministers Questions to Members[Sitting date: 02 July 2013. Volume:691;Page:11721. Text is incorporated into the Bound Volume.]6.CATHERINE DELAHUNTY (Green)to theMinister of Energy and Resources: Does the Government still think that increased mining should be a priority for creating jobs given the recent spate of mine closures and layoffs including the announcement this week that the Reefton Oceania Mine will be mothballed?Hon SIMON BRIDGES (Minister of Energy and Resources):Yes. We have seen clear evidence in New Zealand over the last year that companies have been able to raise money and that the local mining industry is expanding. To give the member a sense of that in 2012 total exploration expenditure was estimated at a record high for New Zealand of $50 million showing continuing confidence to invest in mining in New Zealand. It is probably right to say that internationally mining like so many other sectors is in a contractionary phase but New Zealand is bucking that trend and the Government does not want to be a slave to cycles. We think long term Ms Delahunty.Catherine Delahunty: So is the Government still pinning its economic hopes on the mining boom despite plunging prices for coal and gold and despite the hundreds of job losses in recent months?Hon SIMON BRIDGES: Well no. What is true is we have been raising the profile of the sector but it is only a part—some would say a small part—of the much wider Business Growth Agenda and the jobs agenda which include intensive farming aquaculture and the like. But I would make it very clear to the member who in her questions implies a dislike of coal that it is opportunities like what Bathurst Resources is wanting to do in the South Island that actually lead to the steel that makes the wind turbines that she pins her hopes on.Catherine Delahunty: Given that the gold price has plunged 25 percent this year has he read reports by mining experts that warn that the gold price could collapse further and that now is not the time to invest in goldmining and why is he gambling the country’s economic future by betting that these experts have it wrong?Hon SIMON BRIDGES: Yes I have read many reports on these things but we do not take a boom-and-bust approach to things Ms Delahunty. Actually as I said in my primary answer we take a long-term view. If the member wants to bet against the fact that people will be wanting consuming and using gold for many many many years to come I would say she is foolhardy.Catherine Delahunty: Does he agree with Buller mayor Pat McManus who said in response to the Reefton cutbacks that the district has to diversify its economy and does that not mean it should not be reliant on his boom-and-bust gold industry?Hon SIMON BRIDGES: Well I would like to see the comments in their proper context but the fact of the matter is that goldmining at Reefton has been contributing $45 million each year to that community for some time. Actually as we have seen inrecent regional GDP figures the West Coast is one of the strongest performers. Yes that is on the back of agriculture but it is certainly also on the back of mining. We have been doing it well for a very long time and I think it is right that this Government seeks to lift that profile.Catherine Delahunty: Given the fact that companies like OceanaGold have started mothballing their mining projects and that towns like Waihī after 25 years of goldmining are still struggling economically is he prepared to revise his strategy and support more sustainable economic development?Hon SIMON BRIDGES: Well the member is simply wrong. The fact of the matter is that if one looks at OceanaGold although it is right to say it is putting on hold the Reefton mine it has also got other opportunities in New Zealand that it is continuing with. This Government does not back any particular business. We actually take as I have said a long-term view and although one business may not be doing so well there are a number of others that are increasingly doing more and that are raising capital like Chatham Rock Phosphate like Trans-Tasman Resources and like many others I could list. But I come back to it. If she talks about sustainable growth I would say to the member there will be a place for mining. Take for example that coal that she loves to hate so much. It is necessary in all the renewable projects that she likes to think of.Catherine Delahunty: Is it really worth destroying unique landscapes like the Denniston Plateau for the sake of an industry that employs few New Zealanders is laying off workers and sends most of its profits offshore?Hon SIMON BRIDGES: Well the bankruptcy of that member’s position is that she wants to just get coal that is done much dirtier from other parts of the world and bring it back here in the form of the steel and so on that we need in this country in a modern economy. But the fact of the matter is that my colleague the Hon Dr Nick Smith has been working very hard and sensitively on the kind of issue she raises. And the premise in her—Hon Members: Sensitive?Hon SIMON BRIDGES: Well he is a sensitive new-age guy. But the premise of her question is just plain wrong.Catherine Delahunty: Equally sensitively rather than betting all its chips on the environmentally destructive bust-and-boom mining industry which creates few jobs will National instead take on more green policy and invest in information and communications technology green manufacturing and ecotourism which already employ more people than mining does?Hon SIMON BRIDGES: Well kia ora Ms Delahunty. The fact of the matter is that actually we have been investing more in the areas she talks about in information and communications technology and in tourism. Maybe she should go back and read the Budget.Catherine Delahunty: I seek leave to table a metals report from Ernst and Young which states the 10 major reasons why you should not invest in—Mr SPEAKER: Leave is sort to table that document. Is there any objection? There is objection.