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Part 2 – Roles and responsibilities


The Oil Emergency Response Strategy

[ Last Updated 10 July 2008 ]


Within this section…

4. Introduction

    4.1 This part outlines the roles and responsibilities for the initial decision on whether government involvement is necessary, subsequent decisions on the emergency measures for implementation, and the appropriateness of an ongoing response. The key entities are:

    • Ministry of Economic Development (MED)

    MED would be the lead government agency in the event of an oil supply disruption. MED's key functions would be to convene and lead NESO (see below), liaise with the IEA (if necessary), consult with relevant government departments, collect information from industry, provide advice to the Minister of Energy, and where necessary coordinate the implementation of response measures.

    • National Emergency Sharing Organisation (NESO)

    NESO is an existing committee of oil company representatives chaired by MED. NESO would be vital for providing essential information for, and assisting with, a government response to an oil supply disruption.

    • Minister of Energy

    The Minister of Energy possesses statutory powers for making decisions on a government response to an oil supply disruption. The Minister of Energy also has a responsibility to consult with ministers and seek any necessary decisions from Cabinet.

Figure 2 below summarises the overall framework for response.

Figure 2: Overall framework for response

Foot note 8

5. Initial decision on government involvement

    5.1 If the IEA declared an oil emergency, this would be sufficient to invoke a government response. In this situation MED would liaise with the IEA throughout the declared emergency.9

    5.2 In the event of a non-IEA declared emergency, depending on the nature and scale of the supply disruption, the oil companies have the initial response role. MED would convene and work with the NESO to help determine whether government involvement is necessary.

    5.3 MED may also consult with other industry organisations and stakeholders as necessary.

    5.4 MED would consult with senior officials from other government departments in deciding whether government involvement is required. As noted in Figure 3 below, if cohesive inter-departmental coordination is required, MED may set up a Senior Officials Coordination Team.

    5.5 Based on these consultations, MED would make recommendations to the Minister of Energy about whether government involvement is necessary. Ultimately, it is the Minister, in consultation with Ministerial colleagues as necessary, who has the responsibility for making decisions on the government's response.

6. Subsequent decisions on oil emergency measures

    6.1 Where the Minister of Energy considers that a government response is necessary in addition to a response from industry, MED would oversee its implementation, with support from NESO and relevant government departments. Specifically, MED would:

    • continue to convene and chair NESO, which would have the lead role in providing essential information for developing and coordinating an appropriate response to an oil supply disruption;

    • decide whether officials and communications teams need to be set up and confirm the roles and responsibilities of each team;

    • provide advice to the Minister of Energy on measures to be implemented;

    • if necessary, take the necessary steps to implement response measures;

    • continue to consult with relevant industry, stakeholders, government departments and the IEA where necessary, and;

    • coordinate the collection of information from NESO and government officials on the ongoing supply situation.

7. Appropriateness of ongoing response

    7.1 MED would review on an ongoing basis the appropriateness of any measure(s) implemented as part of the oil emergency response, and advise the Minister of Energy accordingly. A measure would only remain in place in order to fulfil New Zealand's obligations to the IEA or if oil products are, or are likely to be, in continuing short supply in New Zealand.

    7.2 Once the Minister decides that a measure is no longer necessary, the Minister would then take necessary steps for deactivation. In summary, measures contained in the Strategy may be activated (and deactivated) using the process set out in Figure 3 below.

Figure 3: Strategy activation and measure implementation

Roles and responsibilities Information from industry Oil emergency response measures Communications with public and stakeholders
Initial Decision MED consults with industry and government departments to assess need for government response. Advice is given to the Minister of Energy who decides in consultation with Ministerial colleagues. Industry provides information to MED on size of disruption/supply situation and possibility of industry response/need for government intervention.
First Steps MED convenes NESO, which takes the lead in providing essential information for managing the response. MED also consults relevant government departments before liaising with the Minister. If cohesive inter-departmental coordination is required, MED may set up a Senior Officials Coordination Team.
The Minster of Energy, in consultation with Ministerial colleagues, makes any necessary decisions (e.g. use of regulatory powers). 		Information collection from industry (particularly through NESO) to determine appropriate response. Analyse full range of response options. Begin implementation of measures.
Communications plan developed to support emergency response. Timely and accurate information conveyed to public.
Next Steps MED, in consultation with relevant industry (particularly NESO) and government departments, reviews on an ongoing basis the appropriateness of any measure(s) implemented as part of the emergency response. MED keeps Minister of Energy informed. Ongoing information collection from industry to assess appropriateness of response and ongoing need for response. Measures adjusted in light of information collection and the changing situation. Communications plan reviewed for appropriateness on an ongoing basis. Timely and accurate information conveyed to public throughout the emergency response.
Deactivation The Minster of Energy, in consultation with Ministerial colleagues, decides when the measures in the Strategy are no longer necessary, based on advice from MED in consultation with relevant industry and government departments. Ongoing information collection from industry to assess appropriateness of response and ongoing need for response. Measures deactivated. Minister of Energy to communicate the deactivation of the emergency response measures.

Communications team

    7.3 Communications during the event of a supply disruption would be primarily led by the Minister of Energy's office.

    7.4 A communications team (if convened) would comprise communications officials from the Minister of Energy's office, MED and other government departments, as appropriate.

    7.5 The key function of the communications team would be to develop and implement a communications strategy to support the agreed plan of action, particularly for measures where public understanding and voluntary action is important.

    7.6 Part 4 sets out high level objectives for communications in the event of an oil supply disruption. Given the need for a high degree of flexibility to respond to specific scenarios, the communication details will also necessarily remain relatively high-level.

8In the event of a severe petroleum supply disruption it is likely to be the Cabinet Committee on Domestic and External Security Coordination (DESC).

9 The IEA and its member countries have an ongoing responsibility to exchange information in the event of an emergency. The IEA provides information on the nature of the disruption to member countries and involves them in the decision making on the declaration, and member countries have a reporting obligation.


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