Playing Russian Roulette with the Select Committee

16 02 2012

 

A Gisborne District Councillor has told the Select Committee considering a bill that would regulate the Exclusive Economic Zone that the government was playing Russian Roulette with coastal communities.

Manu Caddie, one of 129 submitters on the Exclusive Economic Zone and Continental Shelf Bill, was speaking to the Local Government and Environment Select Committee today when he explained that oiled debris from the Rena was now washing up on Gisborne city beaches and a “one pager” of rules for EEZ exploration applications was grossly insufficient.

Mr Caddie said the Bill does not provide details on what the new regulations will be, resources to clean up anything but a minor spill are non-existent and the public should have input on the detail of rules governing exploration and extraction in the EEZ.

“If the Interim Impact Assessment Guidelines become the requirements within the EEZ Act then they omit detailed baseline sampling of the current state of the area where the activity is proposed” said Mr Caddie. “How can contamination be proven if no baseline sampling is provided beforehand? The wording at present is very vague and should be more prescriptive.

Mr Caddie also pointed out that an oil slick is no respecter of jurisdiction and will not stay within the EEZ.

“Local councils and iwi authorities should be given a veto power if there is enough local concern and support for such a position.”

Mr Caddie stressed that the proposed timeframes between when an application is received, must be notified, submissions made and hearings/decisions is far too short.

“Companies could work on an application for many years and communities will have less than three weeks to read, analyse and respond to complex technical reports, Impact Assessments, financial calculations and other application details – so the timeframes should be more like 3-6 months for submissions.”

In response to a question from Labour List MP Moana Mackey, Mr Caddie said he was very concerned about the imbalance in resources.  Mining companies have “bottomless pockets” compared to the councils and communities that will be affected by an application according to Mr Caddie who represents the Gisborne City Ward and is on the committee of a marae near Ruatoria. “The Government needs to provide public resources and expertise, such as university and CRIs, to councils, iwi and communities that wish to make submissions on an EEZ application” said Mr Caddie.

“All the best practice in the world will not be able to ensure deep sea drilling doesn’t go wrong – the Government is playing Russian Roulette with our coastal area. Rena, Montara and Deepwater Horizon have proven there does not exist the technology or resources to contain anything but a minor spill very close to shore under perfect marine conditions.”

Mr Caddie suggested if the Committee had read the report by the National Commission on the Deepwater Horizon disaster they would know it had identified serious systemic problems within the petroleum exploration industry that have still not been addressed. Many of the same companies involved with the Deepwater Horizon spill are active in the burgeoning New Zealand exploration industry.

Mr Caddie said the safety record of applicants needs to be considered carefully and pointed out that Brazilian oil giant Petrobras has had two significant oil spills since November and two workers killed and a number seriously injured in the last six months alone. One of the spills has seen the companies involved taken to court by local authorities for $11billion. BP is in court this month trying to limit their liability to $30-40b and otherwise could face $100b.

Green MP Gareth Hughes asked Mr Caddie if a climate change clause should be included and Mr Caddie agreed with that the suggestion that climate change impacts should be considered for all applications under the proposed legislation.





A Turning Tide?

26 01 2012

It seems the tide is turning.

The Dominon Post reports that over 300 people participated in a protest on Wednesday in Napier organised by local farmers to coincide with the Apache presentation to the Hawkes Bay Regional Council. Concerned residents in Hawkes Bay have a long and growing list of questions they would like answered by the companies and councils involved. Until satisfactory assurances are provided by independent experts, these citizens and ratepayers are saying they don’t want fracking to happen in their region.

Yesterday I received a copy of the letter from the Christchurch City Council dated 16 January 2012 to the Minister of Energy and Resources requesting a moratorium on fracking until an independent inquiry is completed into the practice. The resolution in the Council was passed 10 votes (including Mayor Bob Parker) to 2.

In the last month more jurisdictions around the world including a number of local authorities in Ireland and the country of Bulgaria have joined France, South Africa, New York State and dozens of smaller authorities across North America in establishing a moratorium or banning fracking completely. Many of these decisions have been endorsed by the local chambers of commerce, medical boards, oil and gas commissions and water catchment boards.

The Labour Party has this week suggested Parliament instigates a ‘robust inquiry’ into the practice in New Zealand – either by the Parliamentary Commissioner for the Environment or the Environmental Protection Agency. Unlike the recent report on fracking released by Taranaki Regional Council, the Terms of Reference for such a study would need wide agreement from experts across a range of disciplines and be at arms length from the legislators, regulators and industry.





Agitating &/or Appeasing Apache?

25 01 2012

Alex Ferguson from Apache Corporation yesterday said the company did not offer to pay for an “all-expenses trip” to North America for staff from councils in New Zealand. He also said “It is an unfortunate and not a very welcoming situation that someone decided to give this sort of distorted information to be published.”

This doesn’t seem to be the understanding of council staff who negotiated the arrangement and wrote in their report that is on the public agenda for our meeting this week: “TAG Oil and Apache Corporation… have suggested council staff travel to [British Columbia]… Apache Corporation have offered to pay external costs…”

Mr Ferguson implies I made contact with the Sunday Star Times, in fact it was the reporter that initiated contact and asked questions that I responded to based on what was in the publicly available report to Council.

I take no responsibility for how the reporter chose to frame the situation – I think he was misleading but, as Mr Ferguson acknowledges, the situation risks such interpretation which was why I made sure the reporter knew that Apache is not in charge of the itinerary. While Mr Ferguson may commute from Canada on a monthly basis, overseas travel by public servants in NZ is always viewed with particular interest by New Zealanders.

Mr Ferguson confirms TAG has drilled at Tangamatai near Whangara. Of special interest to me is that the resource consent permits the use of the product “Drill-Pro” and allow for four wells to be drilled but the TAG Oil Annual Report 2011 says they have drilled eight stratigraphic wells on the site.

I understand more drilling this week is planned at the Tangamatai property based on what I was told by someone close to the drillers, but perhaps it simply the drilling for the 700-800 explosive charges to be detonated as part of their seismic survey work near Whatatutu.

To their credit Apache Corporation has demonstrated a commitment to meeting with local residents and trying to answer the many questions presented. The proposed trip to Canada would be useful and I have full confidence in GDC staff who are competent professionals with the highest levels of integrity.

Yesterday I was pleased to receive a copy of the letter from the Christchurch City Council dated 16 January 2012 to the Minister of Energy and Resources requesting a moratorium on fracking until an independent inquiry is completed into the practice. I hear a protest has been organised by farmers in Hawkes Bay to coincide with the Apache presentation to the Hawkes Bay Regional Council this week. This month a number of jurisdictions around the world have banned fracking completely. It seems the tipping point may be close.





Beyond Petroleum… for good.

24 01 2012

2012 Investor Summit on Climate Risk and Energy Solutions

We have much to thank the oil industry for – that source of energy has enabled humans to achieve all sorts of things that people living 100 years ago would never have dreamed about. I love the fact that I can take my family on holiday to Tauranga and complete the trip in four hours instead of the week or two it would take by horse (if the weather was fine!), I love the medicines, food, clothing and technology that uses cheap oil and gas in their production and distribution processes.

I also know that future generations are going to look back on us in disbelief that we burnt good oil so quickly and carelessly. In light of the overwhelming evidence (well canvased in The Gisborne Herald letters page!) on human caused climate change and peak oil, ‘responsible extraction of fossil fuels’ is quickly becoming an oxymoron.

This is a conscience issue for me, based on the current scientific consensus about the causes of accelerating climate change, I feel I must have some tangible commitment to an urgent transition away from our reliance on fossil fuel toward renewable energy sources.

I currently own a hybrid car that alternates between petrol and electric propulsion. Recently I looked at buying a fully electric car but I could not afford it without adding 40% to our mortgage! I couldn’t help but think that the cost of that electric vehicle, which had been converted from petrol, would be much cheaper if it was more expensive to produce and consume fossil fuels here and overseas. Economies of scale mean that when more people do more of something we usually find cheaper ways to do it.

A recent OECD report estimates New Zealand taxpayers give fossil fuel users around $70 million each year from the public purse. If that is not bad enough, the same report suggests Norway – the country our government suggests we emulate – subsidises fossil fuels to the tune of over $1.8billion per annum. Recent editorials in this newspaper have claimed supporters of investment in renewable energy are proposing subsidies that would be an exercise in ‘government directed disaster’ – I imagine $1.8 billion could be considered a fair amount of government direction.

‎While the government says it is committed to reductions in carbon emissions, it has made fossil fuel production a key part of the national economic development plan. The 2011 Energy Strategy says the goal is to make this country a “highly attractive” global destination for petroleum exploration and production companies.

The Listener’s latest editorial claims “The current infatuation with the oil and gas sector runs the risk that the necessary investment in and support for new forms of renewable energy will be diminished. Of particular concern is that although the Government is rolling out the red carpet to international exploration companies, the enormous potential gains to be made from greater energy efficiency are going begging.”

Last week over 450 global investors controlling tens of trillions of dollars from four continents gathered at the UN for the biannual Investor Summit on Climate Risk & Energy Solutions.

“Climate change is certain to be a major factor in investments for the foreseeable future—perhaps the biggest investment factor of our lifetimes,” said Kevin Parker, global head of Deutsche Asset Management – this bank alone is worth US$4 trillion dollars.

The NYC summit presented a number of notable achievements including a record $260 billion invested in clean energy in 2011 and over one trillion dollars in the past six years. There was a 36% increase in solar power investments alone (reaching US$136.6 billion) in 2011. The highly successful but recently scrapped US Treasury Grant Program paid out around $9.6b over 30 months and leveraged nearly $23 billion in private sector investment for 22,000 projects in every state across a dozen clean energy industries. Investors signed onto an action plan calling for greater private investment in low-carbon technologies and tougher scrutiny of climate risks across their portfolios.

The world is moving towards renewables driven by the inescapable logic of clean energy. Gisborne may have an opportunity to tie ourselves to an outdated, dirty and what many believe irrational industry in its twilight years, or we could, with the support of central government and private investors, be a region that was bold enough to not only recognise the need for sustainable change but actually lead and prosper from it.

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NOTE: The original post suggested Norway subsidised the fossil fuel industry to the tune of $100b, this was a miscalculation using an online currency conversion tool. The figures are from this OECD report: www.oecd.org/dataoecd/55/5/48786631.pdf 

The lower tax rate on diesel provides a benefit of 3,510 million Krone = NZ$664m, the rest of the 2010 figures seem to come out at about 2,053 million Krone = NZ$426m – so close to $1.8b. Thanks to Wayne for pointing out the error, I obviously wasn’t using my currency calculator correctly when I did the original sum. I guess my argument still stands even if it is not quite as compelling! The taxpayer subsidies in Norway do not seem to be decreasing overall, are five times the state subsidies for renewables and most are either static or increasing annually, the only subsidies that decreased in 2010 appear to be the government assistance for seismic testing in the exploration for fossil fuels. 




Sightseeing Canadian Fracking

22 01 2012

Apache said they planned to sell about $1b worth of assets in Canada last year to free up finances required for other activities.

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The Sunday Star Times and Stuff ran an article today that was quite incorrect in it’s main point [now corrected on the Stuff vesion]. It’s not councillors that are going – just one staff member each from three councils, which is what I told the SST reporter via my original email:
“Council staff from the three East Coast councils are planning a trip to Canada to visit Apache operations from 3-13th February, Apache is paying the costs of this trip. The delegation is able to set their own agenda so we’re trying to set up some meetings with environmentalists, First Nations representatives and regulators who may be different to the ones Apache organises.”
I’m not sure why the reporter decided to say it is councillors going.
Anyway, I trust our council staff member who is planning to go and report back – we can suggest contacts for the delegation to meet with so some of these might be worthwhile:

The delegation plan to visit Calgary, Victoria and Fort St John in British Columbia – so let us know urgently if there are any other contacts that may be good to meet with in these areas.

We can also send any questions on to Apache Corp. representative Alex Ferguson who has said the company will answer as best they can.





Councillor welcomes CCC decision to request govt moratorium on fracking

9 12 2011

Gisborne District Councillor Manu Caddie is welcoming news that the Christchurch City Council yesterday agreed to call on the government to put a moratorium in place until a full independent inquiry has been conducted.

Mr Caddie said it was encouraging to see the first local authority take a precautionary approach on the issue given the lack of knowledge about the practice in New Zealand.

“Glaring gaps in a report released last month by the Taranaki Regional Council that was supposed to reassure the public on the safety of fracking simply reinforced growing concerns about the practice” said Mr Caddie.

Recent reports from the United States Geological Survey[1] and a fracking company in the UK that confirm the link between earthquakes and hydraulic fracturing have raised serious concerns about the practice worldwide.

“The TRC report provides no independent scientific evidence on the safety of the practice in relation to seismic activity, nor does it provide information on the rate of well casing failures and provides little detail on waste management and disposal options” said Mr Caddie.

Mr Caddie said he is waiting to hear back from the Parliamentary Commissioner for the Environment who is considering requests to undertake an independent inquiry into fracking.

“We need that inquiry to also consider the bigger picture questions of how oil and gas compare to coal in terms of greenhouse gas emissions as there are conflicting reports[2] on which fossil fuels contribute more to climate change.”

Mr Caddie said he hopes the Christchurch City Council decision will put pressure on the government to put a moratorium in place similar to what South Africa has at present – or it could follow France and ban the practice outright in favour of renewable energy sources.

“Apache Corporation claims France banned fracking to protect its nuclear industry but the French government has suggested it may no longer source electricity from nuclear power as early as 2040″ [3] said Mr Caddie.





Welcome Home…

27 09 2011

Gisborne District councillor Manu Caddie says he is frustrated with the way Housing New Zealand is neglecting properties and treating tenants in his neighbourhood.

“I have counted a dozen empty homes in our area while Housing NZ say they have a waiting list. The corporation have made it clear they want to sell homes in our area and they are retreating into very narrow criteria for eligibility.”

“It is a vicious cycle of landlord neglect reducing the appeal of the area which leads to less tenants and more empty houses” said Mr Caddie who helped re-establish the Tairawhiti Housing Advisory Group focused on social housing issues.

Mr Caddie has been working with the national social housing organisation Community Housing Aotearoa on a housing needs assessment project for the district.

The Minister of Housing recently scrapped a number of social housing initiatives and established a Social Housing Unit focused on shifting Housing NZ tenants to properties owned and managed by private organisations.

Mr Caddie says he is concerned about a number of tenants who have lived in the same state house for three generations and are now likely to be moved on. When Minister Heatley met with the Tairawhiti Housing Advisory Group earlier in the year he explained his intention to start means testing long-term tenants with a view to getting out all but those in the most extreme need. “That might make sense in Auckland where the demand is greater but local Housing NZ staff have said we have very few families in housing crisis so the logic doesn’t stack up at a local level.”

Mr Caddie believes recent examples of homeless local families that made it into the media are just a fraction of similar cases that go unreported. “Our country has a looming housing crisis and we are not prepared for it. The statistics are very scary and the government response quite inadequate. We need 70,000 new homes not 1,400 – and the social housing sector will not be able to generate the income the government expects it to by passing over responsibility to private organisations.”

Mr Caddie knows of one situation where a disabled tenant asked for a ramp to be installed at their Housing NZ property of over 30 years only to be told that it was not an option and they would need to look at shifting to a different property. “So for $500 or whatever a wooden ramp costs, the Corporation will disconnect that family from all the memories and sense of belonging associated with that home?!” asked Mr Caddie.

“The corporation is obviously trying to move tenants out of properties in Gisborne so they can be sold and the proceeds used to build part of a new house in Auckland. If they supported their tenants into home ownership or gave priority to first home buyers we could live with that – but selling them to property speculators and absentee landlords does nothing for building a healthy neighbourhood with residents who have enough invested to stick around” said Mr Caddie. ”We’re also looking at options for locals to own any properties disposed of by Housing NZ.”

Mr Caddie is asking around the neighbourhood to find out who was involved in the theft.




Fracking bans go global…

23 09 2011

In June this year France became the first country to ban the controversial oil and gas mining practice of hydraulic fracking. Under the new law, companies with exploration permits had two months to declare whether they intended to use hydraulic fracturing – if they did, their permits were to be revoked.

The government of South Africa has extended a ban on fracking for another six months while the Minister of Mineral Resources waits on a report from the heads of government departments responsible for trade, science and minerals to be rewritten.

In Australia the New South Wales Governement recently extended  a ban on fracking to the end of the year. A further ban on toxic chemicals will be in place when the moratorium is lifted.

Across North America local municipalities have been taking action to ban fracking. In the state of Pennsylvania alone more than 100 townships have passed ordinances to restrict or ban mining, particularly fracking activities, within their jurisdiction. Thus far municipality-adopted fracking bans are in places such as Buffalo, New York; Pittsburgh, Pennsylvania; and Morgantown and Westover, West Virginia.

In June the New York State Assembly extended an existing ban on fracking for another year. The New Jersey State legislature passed a bill to permanently ban fracking earlier this year but the Governor vetoed that decision and restricted the ban to one more year.

In the case of Morgantown, the ban stonewalled Northeast Natural Energy, LLC’s fracking operations just outside city limits. In June, Northeast sued the municipality, seeking tens of millions of dollars for the unlawful taking of its property rights without just compensation and last month a judge upheld the company’s claims and reversed the local council decision. The court decision is expected to be appealed.

Should Gisborne District Council or any other local authority decide, after widespread consultation with its residents, to change our District Plan rules and put a hold or ban on fracking within our district, can we expect similar litigation from foreign corporations keen to exploit our natural resources for their profit?

The U.S. Environmental Protection Agency is studying the impact of fracking and last Tuesday submitted a draft of its study to the agency’s Science Advisory Board for review. Initial findings from the study are expected to be made public by the end of 2012. No such study has been commissioned in New Zealand yet and a growing number of people I have been speaking believe we should access to a similar report before allowing any fracking-related activity in the Gisborne District.





Renewed call to exit Petrobras deal after explosion

11 08 2011

A Gisborne District Councillor has renewed his call for the government to suspend the East Coast exploration permit for Brazilian energy company Petrobras following a lethal explosion at a Petrobras refinery.

Manu Caddie says the idea that Petrobras has had a clean safety record for ten years is a complete myth.

Mr Caddie says the death of this Petrobras employee and disfigurement of his colleague follow a similar explosion at a Petrobras refinery in Argentina three years ago, a major incident in the Gulf of Mexico earlier this year as the company prepared to start the first new extraction since the Deepwater Horizon disaster and the assassination two years ago of a fisherman and ongoing intimidation of his colleagues who have been protesting against a Petrobras pipeline in Guanabara Bay, Brazil.

“This company is not a model corporate citizen and the Minister of Energy and Resources should not be allowing Petrobras to operate in New Zealand waters” says Mr Caddie.

Government officials yesterday ordered Petrobras to close down the refinery in Argentina after an explosion at the plant killed a 44 year old worker and left another 47 year old in hospital with severe burns to 15% of his body.

The refinery, located in the southern port city of Bahía Blanca, has a capacity of 31,000 barrels per day. The blast happened in a resting area when workers turned on the lights after finishing their shift.

The plant accounts for about five percent of Argentina’s total refining capacity of 627,000 BPD. The plant needs two days to gradually shut down.

Mr Caddie says the statement issued by Petrobras assuring investors that refining operations had not been affected by the explosion was another example of how little regard the company has for people over profit. The claim also seemed to be at odds with the government official statement that said the plant had to be closed until the incident was fully investigated.





Rites of passage research identifies keys for healthy, prosperous communities

27 07 2011

What life lessons did previous generations of young people need to learn before they became adults? Could these rites of passage provide some answers to the multiple challenges facing young Maori today? These two questions were the foundation for a three year national project led by Gisborne researcher Manu Caddie and a team of youth workers from around the country.

Youth workers from Christchurch, Wellington, Whanganui, Whangarei and Tairawhiti interviewed Maori elders in their community with a focus on their experiences as children and adolescents. The interviews were filmed and key messages from the stories compiled into a written summary.

On Sunday night, 6pm at the Dome Cinema in Gisborne, the findings from the project will be released at a public screening of “Hei Tikitiki” a new DVD featuring highlights from more than 30 interviews. A 90 page report summarising the research findings will be available along with copies of the DVD.

The project received financial support from the Lottery Community Sector Research Fund and was based on a proposal Mr Caddie prepared for Te Ora Hou Aotearoa in 2008. Te Ora Hou is a national network of faith-based Maori youth and community development organisations established in 1976. “Te Ora Hou youth workers have contact with hundreds of young people and families every week, we decided this research was essential to do if we wanted to assist with healthy transitions into adulthood” said Mr Caddie. “The 21st yard glass, passing exams and making babies are modern day rites of passage but there are some fundamental life lessons that aren’t being taught to young people, in fact advertising, entertainment media and consumer culture promote the exact opposite of values previous generations were required to accept before being considered responsible adults.”

“It’s been a fairly drawn out process, some of the people interviewed have since passed away, so the footage we have of their stories is very significant to their families” said Mr Caddie. “It was a really special inter-generational experience for the young people and youth workers to interview their elders. I would like to see an on-going project established in Gisborne where we support young people to record the stories and reflections of our elderly. The way society is structured now we tend to segregate the age groups and the wisdom of older people is lost if they do not have the opportunity to share it with the younger generations coming through.”

Anthropology has for at least the last 200 years looked at the purpose of rites of passage within cultures. “A rite of passage deals with entering a new stage of life, maturation in physical, social and sexual status and membership of a new group” said Mr Caddie. The researchers  important theme running through much of the literature is that rites of passage do not exist for the benefit of the individual participating in the process but for the benefit of the community and culture to which the person belongs.”

Most of the interviewees had grown up in communities and a time where Te Reo was the dominant language and tikanga Māori was still the dominant culture. A few had direct experience of traditional institutions like the whare wananga or were mentored by tohunga and kuia born in the 19th Century who ensured certain processes and rituals were in place for the child and adolescents.

Many of the interviewees felt that their experience of rites of passage was more a general process of development rather than an explicit event or an intentional set of lessons that the teachers and learners were consciously participating in.

Interviewees identified a range of experiences more closely assigned with western or contemporary rites of passage including leaving home, first job and working to support parents and siblings, getting a mortgage, general educational advancement including Māori trade training schemes, personal rites of passage, legal marriage, being given or taking responsibility for housework and farm work, choosing own clothing, fashion as a symbol of independence and enlisting in the military.

Common themes that emerged about the purpose and outcomes from experiences that they considered rites of passage include the intergenerational transmission of:

-        Maramatanga / essential values: manaakitanga (hospitality), respect for and valuing the guidance of elders, strong work ethic, personal integrity, contribution to the wellbeing of the whole community, respect and care for the natural environment and other creatures, etc.

-        Mātauranga / essential knowledge: whakapapa (genealogy and how different whānau, hapū and iwi are connected), wahi tapu (sacred places), wahi kai (food sources), battle-sites, astrology, astronomy and patterns of natural phenomenon that guide certain activities, roles and responsibilities of particular whānau within the hapū, cross-cultural comparisons, etc.

-        Mahitanga / essential skills: cultivating food, hunting and collecting food, preparing and storing food, communication skills (whaikōrero/karanga/kōrero/karakia) and hosting skills, house building, martial arts, creative arts and crafts, caring for the natural environment, etc.

Less intentional lessons were also learnt through some experiences such as the importance of alcohol in whānau life, the gendered nature of work, the cyclical nature of violence, etc.

All of the interviewees were able to provide examples of what they considered rites of passage. These were all personal experiences from their childhood and adolescence, in some cases pre-birth and for a few there were experiences they had in late adulthood – a few spoke of practices common in their community that they were aware of in their lifetime or their parents life.

Only a few interviewees were able to share stories of how they participated in particular rituals, institutions or events that would adhere to the famous three stage (separation, transition, and reincorporation) rites of passage. However nearly all of the experiences shared were consistent with the idea of rites of passages being markers of transition from one state of being to another, of being directed by and for the benefit of the wider community and of being essential for the intergenerational transmission of cultural values and community knowledge.

The interviewees stories validate the claim of other recent research that the rite of passage process not only guides the individual’s transition to a new status, but, equally important, it creates public events that celebrate the transition and reaffirm community values, which inform and guide expectations for behaviours essential for the group’s survival.

Mr Caddie said he hopes the project will provide a useful resource for anyone interested in positive youth development, social progress and how we pass on values and knowledge between generations. While the project focused on Maori experiences, Mr Caddie believes the principles and lessons learnt can be applied across any cultural group.

“While government advisors and think-tanks like the New Zealand Institute have identified the real social and economic crisis New Zealand young people find themselves in, we think there are some solutions emerging from the stories of our old people and we need to think about how those experiences might be translated into a contemporary context. There are implications from this research for employment, enterprise, mental health, parenting, education and crime prevention. That’s the next piece of work to be done as we consider the learnings from this report for a broad range of social, cultural and economic issues.”

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Full research report available online from 1 August 2011 at: www.teorahou.org.nz




High score in bad stuff nothing to be proud of…

4 07 2011

A high ranking for New Zealand in the Fraser Institute survey that Acting Minister of Energy and Resources Hekia Parata has been celebrating is nothing to be proud of. If any of the news agencies had bothered to read the survey instead of reprinting her media release they would have read what questions were asked of the industry respondents and what their answers were.

Basically jurisdictions (8 of the top 10 are states of the USA) get high rankings if they have comparatively low levels of royalties and taxes being paid to government, a ‘flexible’ and unorganised labour market and a permissible regulatory regime that does not impose additional costs on the companies. A good example of the latter would be signing off a permit to drill an exploratory well with no requirement to present an Assessment of Environmental Effects, emergency response plan or other health and safety information as Minister Brownlee did for the Raukumara Basin.

New Zealand’s score was no doubt boosted by the certainty factors around the predictability of the regulatory environment, the stability of the government and judiciary and wider socio-economic indicators – we should be proud of these particular factors that also make investment that is environmentally and socially responsible here more attractive.

“Disputed land claims—the uncertainty of unresolved claims made by aboriginals, other groups, or individuals” is one of the 17 factors the survey covers and the labour market questions the ‘militancy of labour’ and ‘local hiring requirements’. In other words, petroleum investors do not like the idea of indigenous people disputing ownership rights in areas like the EEZ that have not been tested in court, do not like strong unions and want to be able to hire the cheapest labour they can from anywhere in the world.

The jurisdictions that tend to do worse in the survey rankings are those that have stronger environmental regulations, more protected wilderness areas, fairer employment legislation and a bigger cut of the profits from resource extraction actually staying with the country the resources are taken from!

Feedback from the industry representatives who completed the survey include comments like: “Excellent investment conditions but difficult geology” and the $4m taxpayer subsidy for geotechnical data provided to the petroleum industry is also noted: “Great fiscal terms, political stability, and free and full access to all geoscience data.”

In any case, as a regular publisher of dubious ‘reports’ encouraging skepticism about the contribution of human activity in climate change, the risks of smoking and problems associated with nuclear energy, the Fraser Institute can hardly be considered an independent source of research. The organisation is well known in Canada as an extreme right wing lobby group, receiving hundreds of thousands of dollars from oil companies like ExxonMobil and Koch Industries, the company fined $30 million by the EPA for its role in 300 oil spills that resulted in more than ten million litres of crude oil leaking into ponds, lakes, streams and coastal waters.

So the report is just a glossy whine from the oil and gas lobby. We already know that mining corporations wouldn’t care at all about the environment if citizens and government didn’t force them to. The fact that they’re whining about it is not news.





WAI262 Report ‘Insulting’

2 07 2011

Maori men and women congregate outside the Rotorua courthouse on election day in 1908.

A Gisborne District Councillor says the WAI262 Report is tokenistic and very disappointing. “This report was expected to provide clarity on property rights for Māori, but instead presents a series of schizophrenic findings and recommendations” said Manu Caddie, who is a member of the Gisborne District Council RMA Hearings Committee and the Environment & Policy Committee.

While the report suggests Māori do not have ownership of indigenous flora, fauna and knowledge – the Tribunal found that Māori have ‘kaitiaki obligations’ that should be protected in law.

“The recommendations relating to establishing better mechanisms for iwi and hapū to have input on resource management planning and decision-making are tokenistic and insulting.”

“Article Two of the Treaty clearly says Māori have “undisturbed and exclusive possession of the land, estates and forests” until such time as they choose to relinquish such possession. Through the 20 something years of this claim, Māori have argued they never surrendered their rights to indigenous resources but this report has found otherwise.”

“The Crown set up and controls the Tribunal funding, appointments and its procedures. The Tribunal has effectively denigrated Māori to associated people who have “important knowledge” with entitlement to a “reasonable degree of protection” over flora and fauna. The report found that the Crown “either deliberately or through neglect, has largely supported one of New Zealand’s two founding cultures at the expense of the other” but goes on to recommend a whole lot of mechanisms whereby the Crown can acquire and control Māori intellectual resources not already under its control.”

Mr Caddie, who recently became an accredited decision-maker under Section 39 of the RMA , does support the Tribunal findings that, for the RMA regime to more effectively support kaitiaki relationships, engagement between tangata whenua and local authorities needed to become compulsory, formal, and proactive.

The report recommends the development of a system allowing kaitiaki priorities for the environment to be integrated into local authority decision-making. This system should be built around enhanced ‘iwi resource management plans’ setting out iwi policies and priorities for managing the environment within their tribal areas. These plans should be negotiated with local authorities and, once finalised, should bind local authority decision-making just as regional policy statements, regional plans, and district plans do. For this system to work, the report suggests the Crown will need to provide resources to allow iwi to obtain scientific, legal and other expertise necessary for the development of their plans.

“The Tribunal found that Māori communities do not have the capacity to overcome the obstacles to their effective participation in the RMA system because there are no reliable and sufficient sources of assistance available to Māori.”

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The Place Where Talent Chooses to Reside

30 06 2011

Presentations in Gisborne this week from two very successful New Zealanders provided clear challenges for us all to support a new direction for our district.

Sir Paul Callaghan undermined conventional thinking that has suggested primary commodities, tourism, wine or even farming can be the economic saviours of the district and nation.

Professor Callaghan made two critical points that as a district we must come to terms with.

The first was to expose the complete myth that we are an egalitarian society. Income disparities have been growing exponentially and we are one of the least equal countries in the OECD. That is a problem not only for the poor but for everyone because countries with greater inequality have worse health, education and crime problems and lower productivity than more equal countries.

The second crucial fact we must acknowledge is that the country has reached the limits of exploiting our natural environment. Resource management decisions have built the wealth of the country but also polluted most low-lying waterways, native species are disappearing forever and we can’t intensify farming to earn our way to a prosperous future.

Professor Callaghan is committed to raising productivity to a level that means the country can afford world leading health care, education and environmental protections. But his message was very clear on this – we have to preserve our natural environment and biodiversity both for its own sake and if we want to attract and retain talent. As he said recently “Talent will goes where talent chooses. And, by and large, talent likes to live where lifestyle is best. The reason is simple. These sorts of businesses can be anywhere. Their markets are entirely overseas, their major component is knowledge and their cost of transport to customers is negligible.”

We heard how Ian Taylor had ideas and opportunities that could have taken him to live in lots of great places around the world, but he wanted to live in Dunedin and raise a family there. The entrepreneurs, scientists and cultural creatives that innovate and develop world-leading products now choose places that are about the lifestyle they want not the physical proximity to markets or research facilities.

There are some basics of course: clean water, reliable electricity, broadband and transport options, decent schools, participatory democracy and a vibrant cultural life all seem pretty important. In our situation some more investment in Information Communication Technology infrastructure, start-up support and greater clarity on regional development goals wouldn’t go amiss. Overall Gisborne is well positioned and already attracting talented people who choose to live in this place – close to the beach, close to marae, without traffic jams, urban sprawl and fear of neighbours.

As Professor Callaghan says, smart firms will locate where their smartest employees want to live. They may not choose large cities. There are small town examples already and there is no reason why Gisborne, Tolaga Bay or Mautuke shouldn’t be locations for high value export manufacturers. Broadband and FedEx can deliver their products to customers anywhere in the world, as fast as from Auckland, Shanghai or London.

So knowledge-based talent can be based anywhere, we can be the place of choice if we are committed to reducing income inequality (not just raising incomes), truly protecting the environment (instead of the popular ‘balancing act’ rhetoric) and continuing with the basics (quality infrastructure and public services) we already have.





Conservation Quorum profile

13 06 2011

New city ward councillor Manu Caddie grew up on a farm on the edge of Tauranga where his parents bred mohair goats, raised bobby calves and had market gardens that mostly grew courgettes, capsicums and gherkins.

“My dad wasn’t a huge conservationist – he would “accidently” step on pukeko nests and battling the rushes and draining our swampy flats was a constant battle we all participated in.”

After leaving school Manu studied and then taught design at Victoria University in Wellington. He met his wife Natasha Koia in 1995 and they moved to Gisborne in 1998 to care for her grandparents.

Since living in Gisborne Manu has been active in community organising with a focus on the Kaiti area and the family are also involved with Tarsh’s marae at Makarika just south of Ruatoria.

“We’re just going through the process of sorting out how to build up there and we have meetings every month to develop the marae and surrounding area.”

The marae recently established a maara kai (community garden) with fruit and nut trees as well as seasonal vegetables. They have a WWF funded project focused on the health of the local stream and have been working with Makarika School to monitor the impact of the construction work to replace the old bridge across Makatote Stream.

The range of environmental issues Gisborne District Council deals with has been something of a revelation for Manu.

“I have a background in activism and I bring those advocacy skills to the role of councilor. I choose the important stuff to take a stand on and recognize that there is a lot at stake on many decisions Council makes. Most of us have quite unsustainable lifestyles – our district has a few people who still live in ways that have minimal impact on this finite planet but the rest of us do not.”

Manu believes conservation issues are really justice issues.

“The natural environment doesn’t get a vote and as a result we’ve seen generations of legislation, policies and practices that have led to the complete extinction of many species. Humans are slow learners with short memories and our priorities in New Zealand seem all around the wrong way.

Consumer capitalism requires continual growth in a finite system, that is unsustainable. We think because we happen to be born here or have the privilege to move to this country we can consume at a rate that will require another couple of planets if other countries decide to live like us.

In the Gisborne District we have an opportunity to transition to a sustainable economy, but at present there is very little discussion about what that would require, let alone much motivation to move in that direction. Energy issues, land use, transport, mineral extraction, waste creation and biodiversity protection are all critical to the survival of our species and many others, and our daily decisions at the personal, household and community level are determining what kind of future we offer our kids and the world they inherit – I’m not very optimistic but I have enough faith in our community to believe a better direction is achievable in my lifetime.”

Manu is a member of the Environment & Policy Committee, the Hearings (Resource Management Act) Committee, Community (& Economic) Development Committee, Regional Transport Committee as well as Civil Defence. He recently completed studies toward the qualification to become a Commissioner on RMA hearings and is eagerly awaiting results from the final assessment!





What Lies Beneath? All sides of the issue (except the govt. who don’t want to front up)

8 06 2011

 

 

It’s a real shame that both the Acting Minister of Energy & Resources and MED / Crown Minerals declined the invitation to participate in this event on an issue that has high interest both locally and nationally…

A printable version of the poster is available here: what lies beneath (4.9mb PDF)

 

 





Response to Nick Smith’s announcement on new oceans bill

2 06 2011

MEDIA RELEASE

2 June 2011

A vocal critic of government policy on offshore drilling in the Raukumara Basin says he cautiously welcomes the announcement that a new bill will be introduced this year to establish regulations on minerals exploration and extraction beyond the Territorial Sea.

District Councillor Manu Caddie says the proposal announced by Minister for the Environment Nick Smith is a big step in the right direction.

“I take issue with his statement that what happens beyond the 12 mile limit has less effect on local communities, a large oil or gas leak in the EEZ would have a massive impact on the Coast.”

Mr Caddie says that provided the legislation has provisions at least as robust as the Resource Management Act, he believes it is a positive development.

“It is pleasing to see that where a proposed activity spans the boundary between the territorial sea and EEZ, local government would have a joint role with the EPA in decision-making.

“The devil will be in the detail in terms of things like a substantial bond can be put in place before any drilling starts in case something goes wrong. We have seen overseas when a major spill happens the issue can be tied up in court for decades and the taxpayer foots the cleanup bill and no one is held to account. Requiring a billion dollar bond up front seems fair to me and should be easy to do for companies with a good reputation.”

Mr Caddie says he is also concerned about the process the EPA will use for determining what activities are determined to be permitted, discretionary or prohibited. “The Minister says seismic testing is likely to be permitted but we will make sure the EPA has access to evidence demonstrating the significant impact seismic testing has on some marine life during their regulation-setting decisions.”

“This proposal obviously doesn’t address the fundamental issue of fossil fuel extraction and the problems that creates for the country and the planet.”

ENDS





Rich Rates

20 05 2011

A few years ago, billionaire Warren Buffett blasted a tax system that meant, without even trying to minimise his taxes, he paid less than half the tax rate of his secretary. He said government policy had “accentuated a disparity of wealth that hurt the economy by stifling opportunity and motivation”.

We have seen a similar situation is at work in New Zealand as Labour revenue spokesperson Stuart Nash revealed the average farmer pays only slightly more income tax than someone on the unemployment benefit and less than a couple living on the pension and since the top tax rate dropped in the mid 1980s income inequalities in this country have steadily increased.

This week Council will be deciding a recommendation from the Mayor that we ask government to increase the proportion of how much of the cost of Council services can be included in the Universal Annual General Charge. This would effectively add $100 extra to the rates demand on lower income households in much the same was as National’s income tax cuts and GST increases are shifting government costs from those who can most afford to pay their share on to the poor. While the $100 going on to the UAGC would be offset by a reduction in some other rate, the change would give benefits to the most wealthy and increase the amount paid by those living in lower value properties.

After a national consultation process involving international research, thousands of submissions and public hearings the Shand Report in 2007 actually recommended that government remove the UAGC entirely and base local authority rates on capital value alone.

Some people argue that the capital value bears no relationship to the ability of owners to pay the rates that their property values attract and therefore capital value based rating is unfair and illogical. The empirical evidence suggests otherwise.

Findings from a project co-funded by Treasury, the Foundation for Research Science & Technology and the Royal Society of New Zealand on these issues was published in 2009 by Dr Arthur Grimes and Dr Andrew Coleman from Motu Economic and Public Policy Research. Part of that research analysed the relationship between income levels and property values. The study accounted for the issues associated with farms, Māori land and other factors that could distort the figures if only urban properties were used.

The report shows that there is a strong positive relationship, at the individual household level, between capital value (CV) and household incomes and an even stronger relationship between property CV and household net worth (i.e. household wealth).

Overall, therefore, while there will certainly be some income-poor (but possibly asset-rich) households in high CV houses, this is an exception. The relationship between CV and income is strongly positive. One way to get around the problem of income-poor but asset-rich retired households living in high CV houses is to allow them to accrue their rates to their estate as provided for by Gisborne District Council’s rates postponement scheme and rural properties get rated proportionally to their proximity to services through the five Rating Differential Areas.

Average rates increases for the next financial will be well under the rate of inflation, Council’s financial sustainability and affordability recently got a ranking of 26 out of 73 local authorities and economists at BERL ranked Gisborne District Council 12th of 72 for economic performance in 2010.

So, if there is independent analysis suggesting that there is not a strong relationship between household income and capital value it would be good to see it before we suggest government lets more rates be loaded onto the households that the existing body of research suggests can least afford it.





The First Casualty is the Truth

11 05 2011

The Minister of Energy & Resources and the Big Oil Lobby made some less than honest claims in The Gisborne Herald in response to my previous piece, so the facts are spelt out here for them.

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Fishermen protest Petrobras pipeline in Guanabara Bay

The footnotes from the mining lobbyists (including the government) yesterday were not honest.
Hekia Parata is not telling the whole story when she says “in the event of an oil spill, the polluter pays for all the costs associated with the response”.
The requirement for spill insurance for all offshore drilling operators is only up to NZ$30m. There may be unlimited liability after that but it is not ‘strict liability’ so there is no guarantee the polluter will ever pay. The New Zealand government or other entities will have to take the polluter to court to recover cleanup costs.
Anadarko is planning to drill off Canterbury before the end of the year and is currently contesting any liability for the Deepwater Horizon disaster that they had quarter ownership in. The Exxon Valdez 1989 spill in Prince William Sound, Alaska is still in court with the polluters challenging the $92 million for ongoing cleanup. While in court, it would be New Zealand taxpayers that will have to cover costs until any settlement was reached.
The 2010 Annual Report of Anadarko concedes that “the events in the Gulf of Mexico may make it increasingly difficult to obtain offshore property damage, well control and similar insurance coverage.”
The Green Party has suggested a bond should be paid by the permit holder before any drilling occurs.
The idea that Maritime NZ could adequately respond to a deepwater spill with 400 people is a joke, while they are well trained and always on-call, their expertise and equipment is designed for small inshore spills. The Gulf of Mexico incident last year required 6,000 ships and more than 40,000 emergency personnel.
A six month investigation by CBS News released last month found that, excluding the Deepwater Horizon spill, at least 128 million litres of crude oil and other potentially toxic chemicals were spilled in the US in 2010 alone. That’s triple the size of the Exxon Valdez spill. New Zealand has had its own share of smaller spills, they come with the industry, just don’t make the big headlines.
In the past 15 years, the chequered safety record of Petrobras shows it has had 282 deaths from accidents, explosions and fires, and 27 oil rig blowouts since 1980.
While the Petrobras safety record may have improved recently (if we discount any involvement in the assassination and attempts to eliminate protesting fishermen in Guanabara Bay), the reality is the Raukumara Basin is at the most extreme end of deepwater exploration in an area with large earthquakes on a regular basis.
The Gulf of Mexico had all the best equipment on hand with thousands of trained personnel and experts just a helicopter ride away. Even then, it still took three months for experts from all over the world to figure out how to cap the Gulf well, 1500m under the ocean, Raukumara is up to twice that depth.
Contrary to the information supplied by the petroleum lobbyists, the Petrobras P-36 platform did spill crude oil, and diesel fuel – 2,000 barrels in the first 24 hours alone according to the official investigation.
And who told the NZ lobbyists that “30 days after the [Guanabara Bay] accident, there was practically no impact from the spill”?! The area is still suffering more than ten years after 1.3 million litres of Petrobras oil leaked into the water. Al Jazeera did an in-depth story on the 10th anniversary in July last year and plenty of other information on the ongoing impacts is available.




Petrobras vs. the fishermen (of Guanabara Bay, Brazil)

28 04 2011

AHOMAR fishermen protesting against Petrobras pipeline in Guanabara Bay

Gisborne District Councillor Manu Caddie says a tip off from a credible source about planned AOS raids led campaigners against drilling off the East Cape to go public. Documentation of recent Police violence against local fishermen opposing a Petrobras owned pipeline in Brazil and the 2007 AOS raids against Tuhoe had meant those opposed to the Petrobras activities in New Zealand had to take the information seriously.
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Mr Caddie says he has obtained a report from Brazil that documents police violence since 2009 against members of Associação dos Homens do Mar (AHOMAR) a union of around 700 fishermen in Guanabara Bay, Rio de Janeiro.
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Amnesty International has taken up the case of the fishermen after the Treasurer of their association was assassinated on 22 May 2009 in front of his wife and children. Paulo César dos Santos Souza was beaten in his home by armed men who then dragged him outside and shot Santos Souza five times in the head. A few hours earlier armed men threatened the protesting fishermen at the Petrobras pipeline worksite. According to Santos Souza’s family, before they killed him they interrogated him, asking him about documents belonging to the fishermen’s union.
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Mr Caddie has been in contact with AHOMAR President Alexandre Anderson de Souza who has escaped attempts on his own life and has been warned by local Police that it is no longer safe for him to fish in the area and he should ‘stay indoors’. “We anticipate some real solidarity between the two campaigns – the fishermen of Guanabara Bay know a lot more about Petrobras than we do in New Zealand, so we look forward to supporting them and learning about their situation as they learn about ours.”
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“While New Zealand does not have the extrajudicial executions and parapolicing mafia of Rio, locals here are questioning the relationships between the Executive, military, Petrobras and the Police in this campaign against deep sea drilling” said Mr Caddie. “The Government are under a huge amount of pressure on this issue and in such situations may resort to desperate measures. The statement issued last night by Police Headquarters that rumours of raids were speculation was less than reassuring – if they have no plans for AOS intervention I think they should explicitly confirm that.”
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Guanabara Bay is the location of a Petrobras accident in 2000 that leaked 1.3 million litres of oil into the bay and the area has still not fully recovered from the event. Petrobras has spent more than US$200million on the cleanup and the company has not had a similar disaster since, though the Petrobras P36 platform sinking in 2001 took 11 lives and 1.5 million litres of oil being leaked into the ocean.
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San Pietro and the fight against fascism

26 04 2011

A navy tender carrying police moves in to apprehend the tribal fishing boat San Pietro, from under the bows of the seismic survey ship Orient Explorer in traditional fishing grounds off East Cape. Saturday April 23, 2011 Photo: Greenpeace/Malcolm Pullman

San Pietro has been critical in the fight against fascism – the Italian village, where 16,000 allied casualties resulted from a pivotal battle, was key to eventually driving the Germans out of Italy after victories in the North Africa campaign.
“It is significant that San Pietro was a turning point for the allies and I believe it will be in our local struggle too” said District Councillor Manu Caddie.
“Using our own military to defend a foreign corporation and arrest and detain fishermen undertaking their customary rights in their traditional fishing grounds is a national disgrace” said Mr Caddie.
“The real criminal is the Government who issued a deep sea drilling permit with no background check on the safety and environmental history of the company, no consultation with affected communities and no assessment of environmental effects.”
Mr Caddie said the New Zealand National Party policy of auctioning off the country for mining exploration was irresponsible and would no doubt be the subject of years of litigation for groups of people who had better things to do with their precious time and resources. “Dictating what will happen in our district by opening up national parks and our coastline to transnational corporations for fossil fuel extraction shows contempt for local wellbeing and will face fierce and sustained local resistance.”