We are following this developing story closely and aware that the MSM are giving more than enough column-inches to flat-earth, uninformed iwi and environmental organisations. After all, their extreme narrow views regurgitated by sympathetic media make enthralling reading.
So what about the tourism industry? Will New Zealand by actively participating in oil and gas exploration put-off tourists that are supposedly looking for a 100 per cent clean-green nirvana? According to the hundreds of tourists we host and a recent reasoned study, that would be NO.
Many tourists are attracted to New Zealand's natural resources, however lasting impressions are more often than not made with human contact and man-made infrastructure. A vibrant economy is an important part of ensuring that our visitors value their Kiwi experience.
Up until now, the Nats have relied upon the smile and wave of a charismatic leader with little opposition. How the Nats will be able to politically quash the growing levels of silly eco-hysteria amongst naive Kiwis will be interesting to follow.
If Kiwis wish to enjoy the trappings of a first-world economy and continue to attract tourists, we have to start producing stuff and it is concerning that New Zealand is running out of productive businesses that are required to prop-up the unproductive masses.
By granting exploration rights for oil and gas, New Zealand stands to gain 20 percent of the accounting profits made, without any investment or financial risk. Further gains are made by an international company paying corporate tax, GST and ETS costs. In addition, all employees pay PAYE, and all companies associated with oil and gas developments and servicing the industry pay taxes on their profits.
In the unlikely event of an oil spill, the explorer has the responsibility to insure themselves and pay the full cost of any clean up. That's why New Zealand needs to deal with large scale international companies like Petrobras that have the experience and capacity to carry-out their responsibilities.
While there probably wouldn't be too many locals working on an offshore drilling rig parked off the East Coast, in the event of the discovery of viable reserves there would be a very significant number of local jobs created.
Isn't ironic that East Coast iwi are the ones at the forefront of opposing the future prosperity of their region.
