Nick Smith
7 AUGUST, 2014
Address to the Environmental Defence Society Navigating Our Future conference
Kia ora hei hui tātou katoa.
Can I acknowledge Gary Taylor and the Environmental Defence Society (EDS) for the first class discussion and engagement
that goes with these annual EDS conferences.
A historic weakness in New Zealand is that our environmental discussions occur in one room and the economic discussions
in another. EDS does a better job of bringing those important debates together than any other organisation and that
makes these annual discussions important. We, more than any other developed country, need to work out how we pull
together economic and environmental policy that support our most important wealth-producing industries and that protect
our quality of life and stunning natural environment. I also acknowledge the many participants from the environmental
sector and from industry that add to the success of these conferences.
This morning I want to give an overview of National’s thinking and priorities, note some of the core issues on where we
have made progress during our past six years as Government, make a couple of further announcements and to outline to you
some of our priorities should we be privileged to lead the Government for a further three years.
It is important to recite National’s Bluegreens principles that underpin our approach. We are a Government committed to
both growing the economy so we can deliver more jobs and better-paying jobs, as well as improving the environment. You
cannot have a strong economy if you have trashed the very resources on which the economy depends. But equally so, high
environmental standards go with strong successful economies. We take pride in our record over the past six years, in
which we have got the economy growing at nearly four per cent per year that we have balanced the books and that
unemployment is tracking down and at a five year low. We have made choices to decline economic opportunities where the
environmental costs are too high, like in Fiordland with the tunnel and monorail. We have made significant environmental
gains and our approach is about getting the balance right.
The second is our view that New Zealand can make more progress on our environmental challenges if we take a more
collaborative approach to resolving environmental issues. That is why we picked up on the 2008 EDS conference initiative
to establish the Land and Water Forum. Another product of these collaborative processes that we champion is the whale
sanctuary, fur seal sanctuary and Hikurangi Marine Reserve that I opened yesterday in Kaikoura.
The third key Bluegreen principle is that good environmental decision-making depends on quality science. That is why I
have been such a strong supporter of the Department of Conservation's response to the 2014 beech mast event, branded as
'Battle for Our Birds.' The politics of 1080 is difficult, but as the Parliamentary Commissioner for the Environment has
made plain, it is the best tool we have available to us if we are serious about ensuring the survival of the species
that define our country.
The fourth Bluegreen principle is that people respond best to change when engaged and given incentives. A good example
is the waste levy that we successfully introduced in 2009, which has enabled us to provide over $100 million of
incentives to reduce waste and improve recycling. In the same theme, the increased funding we have provided this year
for the Queen Elizabeth II Trust has paid a handsome dividend in the huge 53,000-hectare covenant over Mutt Lange's four
stations between Wanaka and Arrowtown, announced on Tuesday. Through this public private partnership we have protected
an area greater than the combined area of the Paparoa and Able Tasman National Parks.
Our fifth and final Bluegreen principle is that New Zealanders have a unique birthright to access and enjoy our special
places. We have opened up 10 new campgrounds, developed a national network of cycleways, and this week entered into a
new community partnership with tramping, deerstalking and mountain biking clubs for upgrading hut and track facilities.
I want to take a moment to reflect on some of our significant conservation and environmental achievements over our six
years in office. I can’t help but start in the marine space, having yesterday joined with the Kaikoura community on the
opening of the new protections coming from the Te Korowai process. It will be one of 10 new marine reserves established
this year – an all-time record.
However, the most significant gain in improving management of our ocean environment has been the Government's passage of
the Exclusive Economic Zone Environmental Effects Act. While I know there was considerable argy bargy over the detail of
this new law, no one can question that it is a huge step forward from the complete lack of environmental regulation in
this huge area nearly 20 times the size of our land mass. Those critics that said that it was a rubber stamp need to
reflect on the Environmental Protection Agency's board decision to decline the application by Trans-Tasman Resources for
iron sand mining off the North Island west coast. This legislation has also enabled us to introduce compulsory
regulations for activities like seismic surveying that previously were not regulated.
I am also proud of our decision to ban shark finning, an action that will take effect on 1 October. It acknowledged the
growing international and local awareness that sharks are an important part of our marine ecosystem and while not as
cute as species like whales or dolphins, we also need to ensure their survival. I am also proud of the role New Zealand
played in supporting Australia’s case to the International Court of Justice on bringing an end to so-called scientific
whaling. Our Attorney-General Chris Finlayson's presentation in The Hague was a substantial contribution to the positive
ruling.
Another marine issue that we have put a lot of work into is in respect of Maui’s dolphin protection. The science makes
plain that the vast bulk of the risk to Maui's is set netting and that is why our Government doubled the set net ban
area. There are those pushing for further extension. So let me make the Government’s position plain: we see set netting
as incompatible in areas where Maui’s dolphins reside. We extended the area to include all those where there were
reliable sightings. There has not been an incident since. We also are funding 100 per cent observer coverage on all
vessels beyond the set net ban. In 900 fishing trips, there have been no observations of Maui's. Our position is that if
there are sightings beyond the protected area then we will review the boundaries. We do recognise that we do need to
take a cautious approach to the Maui's, with their population being so small, but believe that our response has been
responsible and logical.
Another key priority has been improving New Zealand’s freshwater management. The lack of central government direction on
freshwater management has been one of the most serious environmental failings of the Resource Management Act (RMA)
framework since its inception in 1991. That is why we made such a high priority of advancing the National Policy
Statement for Freshwater. We have also passed national regulations requiring metering of 98 per cent of water takes.
This is an important step forward as you can’t manage what you don’t measure. We also doubled the penalties under the
RMA for noncompliance and resource consent breaches and have supported far more robust enforcement of water quality
controls by regional councils.
I am proud of the progress that we have made on freshwater clean-up programmes. The successful intervention at Lake
Rotoiti means that this lake is cleaner than it has been in decades. The cap and trade regime in Taupō is another
success story. Despite the tight fiscal environment we have increased by fivefold, the level of funding to freshwater
clean-ups.
There are also dozens of local initiatives underway to restore waterways. There has also been huge progress on farms
with thousands of kilometres of fencing, riparian planting and much improved farm effluent systems. The latest steps
have been the National Objectives Frameworks for freshwater announced last month by Environment Minister Amy Adams.
It is also true that National sees significant economic opportunities from New Zealand further developing and utilising
its freshwater resources. We do not see this as being incompatible with an ambition for improved freshwater management
and quality. We believe that it is possible, with well-designed water storage schemes, to lift summer minimum flows. We
also believe that there are benefits in shifting irrigation pressure away from aquifers and our low land river systems.
We also believe that with careful nutrient management we can better manage the environmental effects. This is not a
recipe for carte blanche approval for all proposed schemes, but a view that with a robust framework we can enjoy the
economic benefits of improved agricultural production without compromising water quality.
A third very challenging environmental issue is the global challenge of climate change from greenhouse gas emissions.
National’s consistent position is that this is a real issue that needs to be taken seriously and that New Zealand should
ensure that it’s doing its fair share towards a global solution. We introduced in 2010 our modified emissions trading
scheme (ETS) in line with our policy. We are the only country outside of Europe to put a price on carbon emissions. I
openly concede that with the low international price, this scheme is not putting huge financial pressure on sectors to
reduce emissions. The low price simply reflects the lack of action been taken internationally on climate change. The
reason we support this mechanism is that when the world takes the issue more seriously, the price in New Zealand will
naturally correct and New Zealand’s contribution to constraining emissions will correct in line with international
efforts.
The ETS has contributed to the Government’s success in improving New Zealand’s proportion of renewable energy. Whereas
under the previous Government there was a constant downward trend in renewable electricity as a proportion of New
Zealand’s total, that trend has been reversed and the proportion has improved from 65 per cent to 75 per cent. We remain
committed and on track for achieving 90 per cent renewables by 2025. We are also pleased with the progress we have
achieved on home insulation. We have topped 300,000 homes that have been insulated with Government support. A further
significant achievement is the billion dollar investment in Auckland rail electrification and the $60 million investment
in the Greenhouse Gas Research Consortium.
There are two areas this morning in which I want to make fresh announcements. The first is a piece of work we began five
years ago on the contentious area of biodiversity offsetting. There are many areas of environmental work where New
Zealand’s thinking and policy is world-leading. But around the issue of biodiversity offsetting, I think we are behind
as a country in the use of this tool for helping resolve tensions between economic development and impacts on nature.
It is consistent with National’s Bluegreen view that biodiversity offsetting is an appropriate tool that can be used
under the Resource Management Act, the Crown Minerals Act and the Conservation Act. However, we also acknowledge that
without good practice, biodiversity offsetting can fall into greenwash. It is for this reason that we asked officials
across the natural sector involving Ministry for the Environment, the Ministry for Primary Industries, the Department of
Conservation, the Ministry of Business, Innovation and Employment, Land Information New Zealand and Local Government New
Zealand to look at biodiversity offsetting.
Today I am formally launching the good practice guidance for biodiversity offsetting. It is closely aligned with the
internationally developed business and offsets programme and includes the most up-to-date methods and learning. It
includes biodiversity offsetting definitions, principles, key concepts the appropriate application in New Zealand and
key steps necessary to demonstrate good practice.
I do not want to present biodiversity offsetting as the solution to all problems in this space. There are limits to
offsets; in some cases where the biodiversity affected is so vulnerable or irreplaceable that no amount of offsetting
will replace it. Nor does biodiversity offsetting remove the obligation to minimise and avoid impacts wherever possible.
However, these new guidelines that will be publicly available on the DOC website today are a step forward in providing a
more simplified approach to such issues. I want to stress that are these guidelines are not regulations nor is the
Government saying that this is the last word in what represents best practice. We do however want to get these
guidelines out, get them used and start building better practical experience so that they can be further refined.
The second Government release I am making today is on behalf of my colleague the Hon Tim Groser on climate change. The
bulk of the public debate in climate change policy has been on mitigation and steps to reduce emissions. We need to be
realistic that New Zealand’s emissions account for only 0.14 per cent of the global total and that our efforts will have
negligible impacts on how our climate system evolves over the course of the century. A number of commentators have been
calling on Government to provide greater guidance of climate change adaptation. Today we are releasing a booklet on New
Zealand’s framework for adapting to climate change. The booklet details the four areas around which New Zealand’s
adaptation framework is built: information – what risks and opportunities there are as a result of climate change;
responsibilities – whose role it is to manage adaptation, investment where we’re investing to support adaptation; action
– what Government, councils and others are doing to adapt.
We need to be open about the uncertainties that remain over how New Zealand’s climate will change over the course of the
coming century. This adaptation will need to be regularly reviewed alongside the regularly the five year IPCC assessment
reports. I wish to make plain that that the Government sees this adaptation as complementary and not an alternative to
mitigation of greenhouse gas emissions. New Zealand is going to have to both constrain its emissions as well as adapt to
the impacts of climate change.
I want to conclude my speech by giving some sense of priorities should National be privileged to lead the Government
again after the election on 20 September. We will be releasing our environment policies closer to polling day, but let
me give some steers today on direction.
An important early priority will be completing the work and legislation for establishing robust environmental reporting.
It has been well acknowledged that the lack of a statutory framework for environmental reporting is a weakness in New
Zealand’s environmental systems. We put enormous energy and resourcing into carefully managing New Zealand’s financial
capital – but too little into the measurement and management of our natural capital. We see robust regular, and
transparent environmental reporting as an important way forward for improving New Zealand’s management of freshwater,
air quality, our biodiversity and our oceans.
A second important priority will be advancing reform of our marine reserve legislation. While we are proud of the
progress we have made in delivering more marine reserves, the framework is clumsy and outdated and in urgent need of
reform. A good deal of work has been done with officials on a new marine protected areas approach that would bring New
Zealand back up to world's best practice in this area.
An important priority for National will also be further reform of the Resource Management Act. I know that the debate on
section 6 and 7 has caused some angst in the environmental community, but reform is overdue. There is strong recognition
that the lack of mention of natural hazards in part two needs to be addressed. So too does the challenges around housing
and the recognition of the importance of well-designed and planned infrastructure. We need to keep the dialogue on-going
on how we can address these issues without compromising the environmental protection of the Act.
An important conservation priority for me will be the review of the status of stewardship land. There are some
significant and highly valued areas of New Zealand that are inappropriately included in this lowest category of
conservation land. Our Government recently moved to reclassify the stewardship land on Great Barrier Island and created
the new Aotea Conservation Park. We will also be looking at other areas around New Zealand where this needs to occur.
A further initiative is around the status of rivers in many of our highly valued national and conservation parks. The
Parliamentary Commissioner for the Environment recently highlighted the anomaly that these areas are not currently
included in those parks. I am also aware of the management difficulties that occur as a result of this for DOC.
Officials are exploring legislative solutions for providing increased protection for these huge tracts of our wild
rivers.
A further conservation issue that we are keen to advance is the proposed national park in Northland kauri forests at
Waipoua. I received the New Zealand Conservation Authority recommendation earlier this year and I am currently engaged
with Te Roroa on how this might be achieved.
Thank you again for the invitation to address your conference. I miss not having as much time as a Minister to engage in
your forums. Albeit I confess it is not my ambition to have more time on my hands next year. Whatever voters might
decide on 20 September, it has been an enormous privilege engaging with New Zealanders as Conservation Minister and
helping ensure our children get to enjoy what makes this country special.