The politburo, not cabinet, made the oil & gas decision

In a move akin to a banana republic, the government has revealed that cabinet has zero input into the decision by the government to destroy the economy of a whole region of New Zealand.

It is also likely a breach of the Cabinet manual, and likely to lead to court cases seeking judicial reviews of the process the minister and the prime minister took in making such a decision. Quote:

The Government’s decision to ban new oil and gas exploration permits was made by the three coalition parties, not the whole of Cabinet,?documents released on Tuesday show.

The documents include emails between Energy Minister Megan Woods’ office and the Ministry of Business, Innovation and Employment (MBIE), as well as briefing documents and a Cabinet minute.

The Cabinet minute acknowledges the Government’s senior Ministers and the Prime Minister made preliminary decisions on the announcement, but no Cabinet papers have been filed on the subject.

Cabinet papers help ministers make informed decision by offering analysis of policy, including expected impacts and challenges. They are created by government agencies.

In a?Cabinet minute?on April 9, ministers were told Energy Minister Megan Woods “intends to submit a paper to Cabinet in the near future”.

That paper would set out the details of the new policy, “including clarification around the rights of existing permit holders, as well as the fiscal and legislative implications.”

Three days later, the policy was announced. There have since been four sitting weeks in Parliament, but that Cabinet paper is yet to be filed.?End quote.

What sort of a Mickey Mouse government are we running here? This is simply outrageous.?Quote:

Dr Woods acknowledged the politics of the decision in a statement sent out alongside the documents.

“The decision was a political decision, looking out 30 years and taking steps towards 2050 being emission-neutral,” Dr Woods said.?End quote.

God help us. Government by fiat. It makes the attacks on the Fiji government laughable now. At least when they made decrees it was by the President AFTER cabinet had approved the process and with full information. I would crack up laughing if Fiji’s PM issued a press statement requesting New Zealand return to the Westminster process of decision making forthwith.?Quote:

The Cabinet minute mentions the Minister will ask the Ministry of Business, Innovation and Employment (MBIE) to consult on the block offer with iwi and hap?, as well as local authorities.

As has been widely reported,?MBIE?advises current permits could inform mining for 25 to 50 years. That’s because exploration permits give rights to apply for mining permits.

But that’s not to say we have plenty of reserves.

MBIE advised the impact of a complete ban on new petroleum permits – including prospecting, exploration and mining – could pose “significant risk” to the security of energy supply, put pressure on domestic gas prices, lead to perceptions of sovereign risk, alter regional and service sector employment opportunities, accelerate the closure of facilities, and risk legal challenge from investors.

According to MBIE, New Zealand has 2020PJ (petajoules to cubic fee) in gas reserves – an estimated 10 years at the current consumption rate. But preliminary figures of reserve levels on January 1, 2018 suggested the gas reserve to production ratio fell below 10 years for the first time since 2003.

Decreasing gas reserves will result in higher prices with all gas consumers,” MBIE warns.?End quote.

But Jacinda wanted a virtue-signalling announcement to take to Europe, on her carbon burning jet excursion. Labour knows best, they know best. Officials now nothing. It is Phil Twyford-style arrogance and stupidity and it will cost New Zealand dearly.?Quote:

The ban on further gas permits could lead to an increase in global emissions if New Zealand’s methanol production industry is picked up by coal-fired industry overseas.

A company called Methanex uses about half New Zealand’s annual gas consumption to produce commercial methanol.

That company is unlikely to be able to operate at full capacity from 2021, and “not at all after 2026,” the briefings say.

Methanol produced by Methanex is used to produce chemicals like acetic acid and formaldehyde, which are then used to make foams, adhesives, solvents – and biofuel.

The briefing says reducing New Zealand’s output of methanol will reduce New Zealand’s emissions but may increase global emissions “as it is offset with methanol produced with coal”.

The briefing?says if production was to shift to the US, global emissions would be unchanged – they also use gas in methanol production. End quote.

What a bunch of irresponsible and stupid clowns we have running the government. It is high time Winston Peters put a stop to this nonsense, else he will be tarred as the one responsible.

Jacinda Ardern really is a silly little girl, and a dangerous one to boot.