I.E.A. wants energy sector changes

Press, 13 May 1987, Page 6

I.E.A. wants energy sector changes

Wellington reporter Fundamental changes in the energy sector have been recommended in a report from the International Energy Agency after a visit here in 1985. The Minister of Energy, Mr Tizard, said that some of the changes had already been implemented during the last two years. The five main recommendations in the report were:—

• Have information available on possible medium and longer-term energy outlooks.

• Continue to run the expanded oil refinery and synthetic petrol plant. • Crank up levels of oil exploration in New Zealand.

• Clarify the implementation of the energy management strategy. • Improve the level of funding and the degree of co-ordination of energy research, development and demonstration. Concerns about oil exploration, energy management or conservation, and energy research and development, resulted at least in part from the lower oil prices, Mr

Tizard said. A recommendation advocating favourable tax treatment for certain activities in the energy sector would not be implemented.

He said the Government’s policy was to establish and maintain a neutral taxation regime in the energy sector, as in other sectors of the economy. But the Government was encouraging further exploration for petroleum resources by the regular release of exploration acreage on-shore and offshore.