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NZ future not as 'Texas of the South' - Labour

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Mon, 16 Jan 2012 11:39a.m.

Protests occurred last year following drilling by TAG Oil in Taranaki

Protests occurred last year following drilling by TAG Oil in Taranaki

By 3news.co.nz staff

Gisborne-based Labour list MP Moana Mackey says New Zealand’s economic future does not lie in it being the “Texas of the South”, and renewable energy should be the country’s focus.

In a statement on the Labour website, Ms Mackey says yesterday’s revelation in the Sunday Star Times that US oil exploration company TAG Oil is informing investors of an “aggressive East Coast Basin programme”.

The company told investors the “East Coast Basin is literally leaking oil and gas” in a 28-page paper entitled TAG Oil: 2011 – A Record Year.

Ms Mackey says this shows National’s “‘drill it, mine it, sell it'” approach to economic development is well underway.

“This is not where New Zealand’s economic future lies. We need to be investing instead in renewable solutions,” she says.

“New Zealanders will be shocked by the extent of TAG’s plans for an ‘aggressive East Coast basin programme’ comprising thousands of oil wells and significant land purchases.

“This is the logical result of National’s laissez-faire approach to energy policy.

“As a Gisborne-based MP, I know how concerned communities up and down the East Coast are about any expansion of oil and gas exploration in our backyard, in particular the impact on our environment and our tourism industry. And who pays if something goes wrong?

“This is not a sustainable solution for the region’s economic development, but the National Government has no other plan.”

The Labour MP is also concerned about ‘fracking’, and wants to know whether this practice will form part of TAG Oil’s plans for the East Coast.

“An increasing number of governments around the world are reviewing or banning fracking because of concerns about the safety of the practice and in particular the impact on drinking water supplies.

“Labour has been calling for an inquiry into the practice of fracking in New Zealand so that these concerns can be fully investigated. Unfortunately the National Government continues to ignore public concerns about this controversial practice,” she says.

In yesterday’s Sunday Star Times story Labour MP Parekura Horomia, who holds the local Maori seat of Ikaroa-Rawhiti, said he was surprised at the extent of TAG Oil’s plans.

"This is about the third time I understand they have been through [to survey the area]," he said.

"It is a real clear issue for the iwi who are involved. Some people need to show their hand on what they are doing around this."

TAG Oil have already faced protests in New Zealand after drilling in the Taranaki Basin.

But in a July letter to shareholders the company said:

"Our excellent drilling success in the Taranaki Basin has encouraged TAG to aggressively move forward with further drilling that will commence in September 2011."

Since then they have controversially been awarded resource consent to build 18 new wells near the rural community of Ngaere, about 5km south of Stratford.

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Comments

08 Feb 2012 08:07p.m.

Alex wrote:

We should still harvest our supplies before it is exploited by overseas drilling companies. I still like the idea of renewable energy but when electricity demand increases by so many MW per month.... you need to break out.

18 Jan 2012 12:23a.m.

HHH wrote:

Drill baby drill! The money coming in from this will transform that part of the country. Why don't we want to be like Texas? It's filthy rich from the proceeds of oil exploration.
The Iwi are concerned because they want the money from it, not because they are concerned about it.
Drill and tax it and encourage all those Kiwis who went to Aussie and offshore to come back and be a part of this.

Surely people see the sense in making NZ attractive enough to bring people back?

17 Jan 2012 07:29a.m.

atrout wrote:

@Martin.. You would never get a job as a researcher on my team. Did you learn anything in school about getting the facts, not the fiction. Using a uTube clip as evidence for the NZ context is just plain dumb. Your silly ideas about Christchurch are no better thought out either. Blame John Key??? Yeah, right- just an easy cop out in trying to blame someone for imagined evils. The NZ education system needs a real shake up if you ever actually got through high school.

16 Jan 2012 11:10p.m.

Martin wrote:

This is so stupid, has the government not seen the effects of fracking? look up hydraulic fracturing on youtube. Theres a video of a tap water that is flammable due to the effects of fracking. Not to mention the risk of a spill. John Key is going to ruin the country. I know we need the money but this is a highly idiotic way of doing it and anyone who supports it, is a fool. National promise to rebuild Christchurch but I bet you all my savings it won't happen because the earthquakes are going to keep coming and prevent any rebuild... you stupid voters who voted for National voted for the destruction of our country you retards.

16 Jan 2012 07:44p.m.

abo wrote:

What a precious hypocritical lot we Kiwis are - we ALL USE PETROLEUM PRODUCTS one way or another - but thats OK if it doesn't come from our backyard???? If its in our backyard - USE IT for goodness sake - with the right safety measures IT WILL BE OK - and it might even be good for our economy - AND CHEAPER!!!! WHAT are you going to protest about next - inappropriate breathing????

16 Jan 2012 04:05p.m.

atrout wrote:

@Beverley Hillbilly.. your attempt at humor falls really flat. You are caught up with all the other poorly informed folk who don't have a clue about how a country needs to generate a bit of foreign exchange and to be more independent from overseas energy sources. Sure, much of the future is in renewables but there will always be a need for some fossil fuel and/or nuclear. Accept and live with it or fail. Benefits are not paid in subsistence societies of the kind you'd fit into.

16 Jan 2012 04:04p.m.

Phill wrote:

Very little of the money from drilling these wells will go into the NZ economy. Most of the workers will be from overseas and will hardly ever come ashore in NZ to spend their money at local businesses, all the profits will go straight to TAG Oil, only a miniscule business tax will be collected from the company. We will get all the risk and none of the cash, and if there is a spill, the taxpayer will have to pay for it while TAG hightail it overseas.

16 Jan 2012 03:51p.m.

pondering wrote:

Just what we need a good old fashioned fracking on the Waikato, Wairarapa fault lines. And if that does move the earth for us we can try the tail of the Kermadec trench. Yes NZ has been sold off like a 50cent hooker in the mine fields

16 Jan 2012 02:23p.m.

George wrote:

Will NZ see many $'s at all from having TAG buy the rights to drill our oil. They'll get their money back by selling the oil back to us.
Even the most safety-conscious oil company in the world can't guarantee there won't be an environmental catastrophy. What is TAG's safety record like over the long-term?

16 Jan 2012 02:12p.m.

jeoffery wrote:

aron!Drill what??your lost brain.