In a preliminary Cabinet debate to its major NZ Inc review, and the transformatory process which the Govt has said it will implement to lift NZ’s productivity, the PM told Ministers NZ will focus on the 3 “cultures” (agriculture, horticulture and aquaculture), high technology and natural resources. Among the initiatives which may prove winners for NZ is the global alliance for research into cutting agricultural emissions. Some authorities rate this as the most important initiative which will emerge from the Govt’s first term. Unlike the ETS, new technologies to cut agriculture emissions will strengthen, not weaken, the economy. NZ has the finest agricultural scientists in the world and if they are properly funded and internationally networked, they will solve the methane and nitrous oxide problems.

Climate change negotiations Minister Tim Groser has been gathering support for the initiative in Washington this week. Success in increasing agricultural productivity while stabilising or lowering greenhouse gas emissions could be the first concrete step towards the goal of “catching up” with Aust. The stocktake of mineral resources ordered by Energy and Resources Minister Gerry Brownlee could lead to another concrete step. As Trans-Tasman has been reporting in recent months, oil production has become a fourth pillar of the export sector.

Brownlee says it has contributed over $900m in the last 12 months in royalties and taxes to the Crown’s revenue. Several hundred million dollars have been earmarked by oil explorers for a summer drilling campaign off Taranaki, but even more important in the long-term may be a signal (from global oil giant ExxonMobil) due this month on whether it will go to the next step in exploration of the frontier Great South Basin and drill exploration wells, a campaign which could cost more than $1bn.

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