• Resources high on National agenda.
• Electricity price stability seen as vital.
• Balance of all factors in mineral search.

Gerry Brownlee, third-ranking Minister in John Key’s Cabinet, has a crucial role in the new administration. He’s not only Minister of Economic Development, and Minister of Energy and Resources. “I’m delighted to have Resources attached to the Energy portfolio.”
For some years NZ’s resources sector has suffered a degree of benign neglect, but it can play a vital part in John Key’s goal of lifting NZ’s economic development. Brownlee points to the potential for development not just of oil and gas, and other mineral resources (coal, coal seam gas, gold and ironsands) but of geothermal and water resources.

“Officials and others tell me the resources of geothermal energy in the central North Island are ‘huge,’ but no-one can give an accurate estimate. I would like to see a full survey undertaken, and how we go about it is something I will be discussing as soon as I can with officials.”

With oversight of the electricity industry now in his hands, Brownlee says the biggest challenge for the industry is to deliver price stability. “For the last five years we have seen rapid price escalation in the industry. Prices for consumers have risen more than 50%.” With the rapid fall in international oil prices, it’s expected the pressure on other energy prices particularly gas will also begin to ease. The Govt is expected to move rapidly on its commitment to remove the moratorium on new thermal generation imposed by the previous Govt. This will allow electricity companies to reappraise their future energy developments in the light of the latest economic projections. Brownlee recognises NZ is a country with very considerable renewable energy sources, and suggests this should offer the opportunity to provide a greater buffer in supply.

On the controversial issue of the inter-island high voltage link, where the grid operator has plans to upgrade the system, Brownlee questions the role of the Electricity Commission which in effect “second-guesses” the work Transpower engineers have done.
On the broad subject of development in the mineral sector, Brownlee says there has to be a balance between economic and environmental goals. For the foreseeable future the NZ economy will be dependent on oil. He notes the potential for the recovery of oil and gas has markedly improved, partly through the Govt funded programme in the collection of seismic data on offshore hydrocarbon prospects.

“I have the view there is more we can do. One of the things I will be looking at is whether we can reinstate the seismic study programme which was canned in the last budget. There may be some money somewhere else in the (departmental) system which can be re-allocated to that.”

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