Labour leader Chris Hipkins says he doesn’t believe a letter from Christopher Luxon asking him to commit to supporting offshore exploration for natural gas for at least 10 years is a genuine attempt at building bipartisan consensus.
Prime Minister Christopher Luxon wrote to Labour leader Chris Hipkins asking him to commit to supporting offshore exploration for natural gas for at least the next 10 years.
Hipkins told Morning Report it was a “desperate attempt” by Luxon to preemptively blame the previous government if oil and gas companies don’t see the prospect of finding more gas in New Zealand attractive.
However, he is waiting to see what the government announces in response to a recent review of the electricity sector before he responds to the request.
In the letter, seen by RNZ, Luxon said if Labour reinstated a ban on offshore gas exploration, it might pose an insurmountable barrier for some investors.
“You have said previously that, if elected, Labour will not spend its time ‘pausing, cancelling, and reviewing everything’. But bipartisanship must be more than a political slogan,” Luxon wrote to Hipkins on Monday.
“Hence, I am writing to seek a commitment from the Labour Party to support offshore exploration for natural gas for at least the next ten years.
“Under even the most ambitious plans for New Zealand’s renewable transition, a secure supply of fuel remains a cornerstone of our energy landscape – underpinning stability and affordability for families and businesses alike.”
The letter comes amidst a backdrop of rising energy prices. Gas prices have more than doubled on average over the past five years with supply falling faster than expected.
Luxon said he was hopeful by lifting the ban on offshore exploration, New Zealand would reach a secure supply of fuel to support the country’s energy transition.
The government reopened applications for oil and gas exploration across the whole of New Zealand for the first time since the 2018 ban, with a new faster route for awarding permits.
In a statement, Resources Minister Shane Jones said a new “open market” pathway would allow firms to apply at any time for permits to explore new areas of land and sea.
After an application was lodged, competitors would have three months to make rival bids, with officials then choosing the strongest proposal.
But Hipkins doesn’t believe offshore gas exploration isn’t the answer to New Zealand’s energy woes.
“It is not going to be an abundant and cheap form of energy for New Zealand in the future – we’ve got to get our heads around that,” Hipkins said.
“We have other abundant and cheap energy available to us, we should be really ramping up our emphasise on that if we want to bring power prices down.”
He said if the government can find someone to drill for gas, and they find gas, it would still be years before that gas came on stream.
“We have got a problem… that we need to address. But renewable energy… could solve those problems much quicker then hoping one day that we find more gas,” Hipkins said.
rnz.co.nz
