Double standards are at work in Govt policy on resource development. When three companies proposed farming 18,000 cows in the Mackenzie Basin using European “cubicle farming” techniques, Environment Minister Nick Smith called in their applications for effluent consents because of national concerns such as the effect on NZ’s clean green image. The applications were withdrawn when the companies faced $2.6m in costs for the call-in process. Smith said it was reasonable, when dealing with public resources being used for commercial enterprise, for the applicants to meet the cost of the process dealing with “very considerable environmental issues.” But the scheme’s promoters believed they were pioneering a method of environmentally sustainable farming.

Better Treatment? Mining on the conservation estate is being treated more sympathetically. A discussion document proposes opening 7000ha of conservation land for mining (offset by 12,400ha being added to the estate). A DOC review is looking into simplifying the concession process, to cut compliance costs and timeframes, and it is working on a “single process” for nationally significant proposals where concessions and resource consents are needed under the RMA. Business people are reported to be backing the Govt on this initiative, cheered by the employment and other wealth-generating benefits. But The Economist regards this as another blot on NZ’s environmental credentials and Tim Cossar, head of the Tourism Industry Association warns tourism may be a more valuable and sustainable industry to NZ’s economy in the long-term than mining. He wins the sustainability argument: once the minerals are dug out, it’s over.

Numbers Game. An array of statistics and contentions have been used to uphold the Govt’s approach. Mining will be “surgical incision” stuff. NZ’s land mass is just under 27m hectares but maybe 7000 at most might be opened up for mining. Tourists will keep coming because record numbers arrived last year when 82 mines already were operating on the conservation estate. Mining applications will be considered on a case-by-case basis. The king-hit is NZ’s mineral resources, even excluding coal and other hydrocarbon-based minerals, are estimated at $194bn. But not all those minerals will be extracted under the Govt’s immediate plans, the royalties may be a comparative trifle and we can argue about the other values of protected areas to be taken or added to the conservation estate. Hence the net benefit is uncertain and the economic case not as overwhelming as it seems at first blush.

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