Administrative and Service Delivery Outputs
Crown Minerals
Overview
Under the Crown Minerals Act 1991, the Crown owns all in-ground petroleum (oil and gas), gold, silver and uranium. It also owns approximately half of the in-ground coal, non-metallic and other metallic minerals, and industrial rocks and building stones. The total annual production value of petroleum, coal and minerals is about $2.1 billion, or about 2.3% of GDP. From this production, the Crown collects around $160 million in royalties and energy resource levies.
The Crown Minerals Group within the Ministry's Operations branch is responsible for managing the Crown's petroleum and mineral estate. Its business objectives are to attract investment in exploration and development and to maximise the return to the Crown from its petroleum and mineral resources. It seeks to achieve these objectives by providing an internationally-competitive permit allocation and royalty regime, informing industry about investment opportunities in New Zealand and maintaining good working relationships with petroleum and mining companies.
Energy Safety
Overview
Supplying and using energy safely is a key consumer issue. Energy safety policy and regulation is concerned with creating an environment in which people and property are safeguarded from the dangers of gas and electricity, gas and electrical appliances and installations and electricity supply and generating systems are safe, the quality and measurement of gas and electricity is maintained, and the quality of petrol and diesel is maintained.
Electricity and gas safety legislation and petrol and diesel quality legislation is administered by the Energy Safety Service, which is part of the Ministry of Consumer Affairs branch of the Ministry of Economic Development. The Service monitors and encourages compliance with legislation on energy safety. In recent years, there has been a lot of work on developing and maintaining consistent and internationally acceptable standards for New Zealand's systems of electricity and gas safety and supply quality and measurement, and resources have gone into working with industry to promote high safety and quality standards in networks, installations and products. The current environment is moving towards promoting greater reliance on safe outcomes with less prescription, to provide for greater flexibility of approaches and innovation. This has resulted in performance-based legislation and standards being developed. There is a greater focus on industry putting in place programmes to demonstrate compliance through various agreed mechanisms, monitored by the Energy Safety Service.
Another key element of the energy safety work is the Service's work with industry to inform consumers about energy safety, supply quality and measurement. In the last few years, there have been annual winter publicity campaigns to improve awareness of LPG safety. There is also a lot of work with industry to ensure those undertaking electrical and gas work are well informed about the regulations and standards.
During the last financial year (ending 30 June 2005), there were 57 injuries to persons involving electricity (reportable under section 16 of the Electricity Act), of which six were fatal. There were 36 notifiable gas accidents involving serious harm and/or significant property damage, reported under Section 17 of the Gas Act. The numbers of reportable accidents have remained relatively stable over the last eight years, even though energy use and the number of energy users has continued to increase.
Next Three Years
Energy Safety Review Bill 2005
Since 1996, as part of the EnergySafe Programme, work has gone towards improving the electricity and gas safety regimes, including requiring ongoing competency-based licensing of electrical and gas workers and achieving greater alignment in the licensing and related provisions applying to electrical and gas workers. This work culminated in the introduction of the Energy Safety Review Bill to the House in July 2005. Over the next three years, the Energy Safety Service will be developing regulatory changes in line with the Energy Safety Review Bill.
A critical activity for the Energy Safety Service will be working with the Department of Labour to establish protocols for a working relationship for the reporting and investigation of accidents as required in the Bill.
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