Bridges Simon: Energy (Fuels Levies and References) Amendment Bill — Second ReadingText is incorporated into the Bound VolumeBridges Simon: Energy (Fuels Levies and References) Amendment Bill — Second Reading[Sitting date: 10 December 2014. Volume:702;Page:1333. Text is incorporated into the Bound Volume.]Hon SIMON BRIDGES (Minister of Energy and Resources):I move That the Energy (Fuels Levies and References) Amendment Bill be now read a second time. What a great way to finish the year. I would like to thank those who took the time to make submissions and the members of the Commerce Committee for their work in considering this bill.This bill amends the Energy (Fuels Levies and References) Act 1989 in order to provide a sustainable funding source for New Zealand’s International Energy Agency oil stockholding treaty obligations. A secure supply of energy is critical and this Government has prioritised a range of measures to improve oil security through the Business Growth Agenda. An important part of those measures is sustainable and user-pays funding of our oil stockholding obligation with the International Energy Agency.Grant Robertson: Used to be the future.Hon SIMON BRIDGES: So did you sunshine. The stockholding obligation helps mitigate the market power of large oil-producing nations and is an important contribution to global oil security. The International Energy Agency system helps protect New Zealand and its trading partners from economic harm that could result from a sudden increase in oil prices. New Zealand’s oil demand has grown steadily since the mid-1980s and as with most OECD countries this has been driven primarily by demand for transportation fuels petrol diesel and jet fuel.Although the Government continues to undertake a range of initiatives to improve the operating environment for the oil and gas sector and to encourage further exploration and production of oil in New Zealand as well as promoting energy efficiency measures to help make our fuel use more efficient we can also make our imported sources of oil more secure. The petroleum or engine fuel monitoring levy currently covers the cost of monitoring fuel quality and costs related to the International Energy Agency such as acquisition of energy data. This bill will create the scope of the levy to fully fund the Crown’s oil stockholding obligation with the International Energy Agency. In doing so it will provide a sustainable funding source and an enduring financial commitment to global oil security that will ultimately benefit New Zealanders with a more secure supply of transport fuels.The Commerce Committee received four submissions on the bill. There were some useful suggestions for improvement and the committee recommended that the bill be passed with two amendments. The committee recommended limiting the scope of the levy by clarifying that it is for the Crown to meet the reasonable costs and expenses of compliance with New Zealand’s obligations under article 2 of the International Energy Agency to maintain the emergency reserve commitments set out in that article. The revised purpose makes it crystal clear that the levy will be used for maintaining New Zealand’s contribution to global oil security. I commend this bill to the House.