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New Zealand: Mining in Schedule 4 Conflict: Difference between revisions
New Zealand: Mining in Schedule 4 Conflict (view source)
Revision as of 22:15, 5 November 2013
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Brown remained realistic about the need to pay off public debt and reduce the Government’s fiscal deficits, as well as the hypocrisy of using mineral resources mined in other countries, “[b]ut if I’m to be asked to swallow a proposal whose implications stretch out for tens or hundreds of years, I expect far better than to be told by a minister that he is totting up that future on the back of a bloody envelope.”<ref>Russell Brown, The Back of a Bloody Envelope, Hard News, Public Address news blog, 23 March 2010 http://publicaddress.net/hardnews/the-back-of-a-bloody-envelope/ retrieved 5 May 2011</ref> | Brown remained realistic about the need to pay off public debt and reduce the Government’s fiscal deficits, as well as the hypocrisy of using mineral resources mined in other countries, “[b]ut if I’m to be asked to swallow a proposal whose implications stretch out for tens or hundreds of years, I expect far better than to be told by a minister that he is totting up that future on the back of a bloody envelope.”<ref>Russell Brown, The Back of a Bloody Envelope, Hard News, Public Address news blog, 23 March 2010 http://publicaddress.net/hardnews/the-back-of-a-bloody-envelope/ retrieved 5 May 2011</ref> | ||
Another prominent political commentator, Gordon Campbell, was also highly critical of the indicative figures used by Brownlee, arguing that it encourages mining companies to exaggerate estimates in order to get government backing for drilling in sensitive ecological areas to find out whether said estimates were correct or not. “Does that sound responsible – or does it sound more like the government is playing Russian roulette with the conservation estate?” asked Campbell.<ref>Gordon Campbell, Greenlight to Mining, Scoop news website, 23 March 2010 http://gordoncampbell.scoop.co.nz/2010/03/23/campbell-the-government%E2%80%99s-greenlight-to-mining/ retrieved 5 May 2011</ref> | Another prominent political commentator, Gordon Campbell, was also highly critical of the indicative figures used by Brownlee, arguing that it encourages mining companies to exaggerate estimates in order to get government backing for drilling in sensitive ecological areas to find out whether said estimates were correct or not. “Does that sound responsible – or does it sound more like the government is playing Russian roulette with the conservation estate?” asked Campbell.<ref name="Campbell">Gordon Campbell, Greenlight to Mining, Scoop news website, 23 March 2010 http://gordoncampbell.scoop.co.nz/2010/03/23/campbell-the-government%E2%80%99s-greenlight-to-mining/ retrieved 5 May 2011</ref> | ||
Campbell also criticised the estimated value of the tiny area of Schedule 4 land (NZ$60 billion on 7,058 hectares) compared to the estimate of NZ$194 billion for New Zealand a whole. “It doesn’t make sense. Either these estimates are completely cockeyed – or else some very heavily intensive mining of these areas is being contemplated.” | Campbell also criticised the estimated value of the tiny area of Schedule 4 land (NZ$60 billion on 7,058 hectares) compared to the estimate of NZ$194 billion for New Zealand a whole. “It doesn’t make sense. Either these estimates are completely cockeyed – or else some very heavily intensive mining of these areas is being contemplated.” | ||
The problem as Campbell saw it was that the Government relied exclusively on the work of a single mining industry consultant who had admitted that his figures represented a ‘back of the envelope exercise’.<ref | The problem as Campbell saw it was that the Government relied exclusively on the work of a single mining industry consultant who had admitted that his figures represented a ‘back of the envelope exercise’.<ref name="Campbell" /> “Even then, this figure [$NZ194 billion] is for gross worth. It bears no relation to the figure that would actually accrue to New Zealand, once foreign-owned mining companies have extracted the mineral wealth, and taken the lion’s share of the profits offshore.” | ||
This issue of the direct financial benefit to New Zealand was one pursued by Radio New Zealand host Kathryn Ryan. Asked what the expected government royalties would be from minerals extracted by a foreign-owned mining company, NZ Minerals Industry Association Chief Executive Doug Gordon said the direct return to the country would be a 5% accounting profit on gold and silver or a 1.5% gate profit – one or the other.<ref> Radio New Zealand interview, Kathryn Ryan Nine to Noon, Mining the conservation estate, 23 March 2010 http://static.radionz.net.nz/assets/audio_item/0005/2246495/ntn-20100323-0908-Mining_the_Conservation_Estate-m048.asx retrieved 3 May 2011</ref> | This issue of the direct financial benefit to New Zealand was one pursued by Radio New Zealand host Kathryn Ryan. Asked what the expected government royalties would be from minerals extracted by a foreign-owned mining company, NZ Minerals Industry Association Chief Executive Doug Gordon said the direct return to the country would be a 5% accounting profit on gold and silver or a 1.5% gate profit – one or the other.<ref> Radio New Zealand interview, Kathryn Ryan Nine to Noon, Mining the conservation estate, 23 March 2010 http://static.radionz.net.nz/assets/audio_item/0005/2246495/ntn-20100323-0908-Mining_the_Conservation_Estate-m048.asx retrieved 3 May 2011</ref> | ||