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Leader's LetterMarch 2007
The Great Energy Debate In December last year the Government launched its draft energy strategy, which will hopefully provide the impetus for a muchneeded debate on New Zealand’s future energy system. The growing and seemingly endless demand for energy and transport fuel is forcing New Zealanders to think about how we can be more energy efficient. Our contribution to worldwide climate change has also come under increasing scrutiny. A basic requirement of our energy objectives continues to be the need for security of supply, a competitive pricing system and environmental responsibility. Shifting our focus to generating more renewable energy is essential if we want to ensure smart electricity networks that get the most from our electricity sector. But, in order to maximise the benefit of creating alternative electricity generation through wind, wave, solar and geothermal power, it is essential that amendments to the Resource Management Act are made to ensure a more rapid consents process for infrastructure projects, while also making certain that local input is preserved. Efficient freight movement and the introduction of renewable transport fuels are essential for a sustainable energy supply. The proposal for the development of a shipping strategy to move freight is certainly a positive step forward and one that New Zealand First has long argued for. As fuel costs rise, as congestion on roads gets worse and as shippers of goods increasingly look for more costeffective modes of transport, coastal ships present a favourable option for long distance transport. Coastal shipping offers environmental benefits and gives an opportunity to reduce the impact of heavy vehicle transport on our roads. The greater efficiencies in transport that a superior shipping network would provide could undoubtedly result in economic and social gains for the country as a whole. At the moment, New Zealand has a coastal fleet which is struggling to survive. All other shipping servicing our exports and imports is foreign owned. There are examples, however, of shipping’s potential as a transport feeder service. The use of the Port of Tauranga’s MetroPort facility as a means for exporters located in the highly productive Bay of Plenty and Waikato regions to combat the significantly high inland transport costs of getting their cargo to Auckland demonstrates this. The proposed shipping strategy is an opportunity for government and port owners to work together to facilitate the investment that is necessary for coastal shipping so that New Zealand no longer has its most fuel efficient transport mode being least used, while its least efficient transport mode is being most used. The most important thing about the new proposed energy strategy, however, is that the Government takes a balanced approach and explores a full range of energy sources which will provide both improved energy efficiency and greater investment in renewable energy, while contributing to employment growth and economic development. Peter Brown MP
Supergold Card Update
Several developments are well underway as we progress towards the launch of the Supergold Card in August this year. The enabling legislation is now before the Social Services Select Committee and will be reported back to Parliament on 5 April. The Ministry of Social Development is currently engaged in a campaign to get commercial discounts across New Zealand, particularly within sectors of direct benefit to seniors. There have been encouraging early signs of interest from businesses both large and small. A business discount freephone (0508 65 00 00) has been set up to take calls from businesses interested in providing a discount. Additionally, negotiations for appropriate discounts with local government bodies and other government agencies have begun. For those with further inquires the Supergold freephone number 0800 25 45 65 is available for initial enquiries at this stage; further information is available on the MSD website (www.msd.govt.nz). Further Minimum Wage IncreasesOn 1 April 2007 workers earning the minimum wage will receive a 9.8% pay rise from $10.25 to $11.25 an hour ($450 for a 40 hour week), bringing wages a step closer to the $12 an hour minimum wage by 2008. This is a core feature of New Zealand First’s Confidence and Supply Agreement. Additionally, the youth minimum rate, for workers aged 16 and 17 years, will increase from $8.20 an hour to $9.00 an hour. This is a necessary step in moving New Zealand toward a high wage economy and recognises the often unheralded efforts of those working in low paid jobs.
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