STRATEGY AND GOVERNANCE COMMITTEE 09 MARCH 2016

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1 MEETING: Name of item: Author: Date of report: 19 February 2016 Document number: Executive Summary STRATEGY AND GOVERNANCE COMMITTEE 09 MARCH 2016 Item: 3.2 OPTIONS TO BETTER UNDERSTAND COMMUNITY VIEWS ON LAND-BASED AND OFF-SHORE EXPLORATION AND EXTRACTION OF MINERALS, OIL, GAS AND AGGREGATES Joanne Field - Manager Strategic Planning and Projects A The purpose of the report is to propose a definition for mining and inform the Strategy and Governance Committee about options for community consultation to develop a position statement on mining. It suggests that prior to undertaking any engagement on the subject, Council undertake a random survey to gauge community opinion on mining. This would allow all opinions to be captured. The result would reflect the silent majority and would give Council a basis to determine what further engagement is required. Recommendation THAT the Strategy and Governance Committee makes the following recommendations to Council: THAT the definition Council uses for mining as contained in the District Plan be extended to include all land-based and sea-based extraction of minerals, oil, gas and aggregates; AND THAT Council endorse staff undertaking a random survey of community opinions on mining as an initial step in developing a Council position on mining. 1) Background On 30 October 2014 a position paper was adopted by Council on land based mineral, oil and gas extraction. This paper focused mainly on advocating for a local share of royalties from extraction. It acknowledges that further work should be done on the relationship between the position statement and off-shore extraction, any associated land based development and activity to support extraction, while retaining a position on local share. On 29 October 2015 a workshop was held to discuss the 2016 Northland-Reinga Basin Exploration Block offer. At this workshop it was agreed that staff would provide options for consulting communities to develop an informed position on mining in general. There are a number of factors influencing the demand for a broader position statement: Council has few mechanisms to influence decisions around mining. The only regulatory control is through the District Plan. There has been limited engagement with local government and Māori over off-shore mining, and often it feels cursory. Document number A Page 1 of 5

2 It would provide Council with an informed stance to comment on legislation and central government consultation on future Block Offers as well as licences. It would inform strategy development within Council. There are noted mixed views in the community. While Council hears from the groups with strong opinions, there is no clarity about what the majority of people think and the reasons for their opinions. Some individuals and communities don t understand Council s role and level of influence on issues such as off-shore exploration. As a result they feel like they aren t being heard or that Council is not going far enough on their behalf. During engagement, there is an opportunity to increase people s knowledge about mining, its risks and benefits, who has what role, and where and with whom they should engage. Some councils are taking on an advocacy role on behalf of their communities, e.g. Kaikoura District Council. The fit with Council s broader consideration about sustainability and the adopted District Vision - how will economic benefits be advanced while sustaining the environment; and for mining who benefits? New Zealand Petroleum & Minerals (a subsidiary of Ministry of Business, Innovation and Employment (MBIE)) is the agency that leads and manages the Government s petroleum and minerals portfolio 1. Council has a relationship with MBIE through the Tai Tokerau Northland Growth Study and Tai Tokerau Northland Economic Action Plan, the Te Hiku Social Development Accord. MBIE is also a key player in the development of digital infrastructure, including the Ultra-Fast Broadband and Rural Broadband initiatives. The District Plan has a section on Minerals Zones (Section 8) which provides for mineral extraction activities. Traditionally these zones have been to acknowledge existing mines or quarries. Farm and forestry quarries used for internal roads are contained within the definition of normal rural practices. The District Plan review team are working with other stakeholders to identify and map sources of aggregate and minerals in the district and assess whether existing earthwork rules are appropriate. 2) Discussion and options Prior to undertaking any engagement on mining there needs to be an agreed scope developed for this work, and some background research undertaken. It is recommended that the definition we use for mining includes all land-based and seabased extraction of minerals, oil, gas and aggregates. This includes existing local businesses, and potential activities. Background research would be required to build a picture of the current situation, i.e. who currently holds extraction or exploration permits? Where does current product (such as aggregates) go and what is it used for? What is the situation with old quarries or mines? What opportunities have been identified from previous studies? What is the potential impact of various activities? This would be complemented by information on the current framework for management, Government policy etc. 1 Relevant legislation includes the Crown Mineral Act 1991 which relates to Mineral extraction on Crown land. The Environmental Protection Agency administers the Exclusive Economic zone and Continental Shelf (Environmental Effects) Act 2012 and associated regulations which impact on offshore exploration and prospecting. Document number A Page 2 of 5

3 Through engagement with the community there are a number of issues that can be explored: Is offshore drilling supported? While we don t have a direct influence over this area, we can advocate for or against it. Is land-based extraction supported? Is it extraction of all minerals, oil, gas and aggregates? Should locally owned businesses and non-locally owned businesses be treated differently? What if there were ways to mitigate risk to the environment (and what level of precaution would be expected / risk could be tolerated)? Any new position would be complementary to the existing position paper as it would be a position on whether Council supports mining or not, and in what form. The existing position paper states that when mining is occurring within the Far North District benefits should flow to the district. What type of engagement? Preliminary Survey To determine whether the issue / concern over mining in the district is widespread or whether Council has only heard from the louder voices of people at each end of the (support or oppose) spectrum, Council could undertake a random survey of the district. This would ensure there is good representation from a broad cross-section of the community. It could be done quickly, and would provide robust results to support a position. It would give Council a representative voice from the silent majority. It would also give good information on community segmentation (who thinks what and why). To ensure people have an informed opinion, it is recommended that information about mining risks and benefits be provided to participants before they are surveyed. As indicated, these results could inform what next steps and consultation may be required in forming a position. Irrespective of what the next steps are for a position paper, the results would inform work on the Our Voices - Our Vision Far North Sustainability Strategy and the District Plan review. Part of OVOV - Far North Sustainability Strategy Work has begun on a Far North Sustainability Strategy to support the district vision (He Whenua Rangatira: a district of sustainable prosperity and wellbeing). A consultation plan will be developed for this work within the next two months. The consultation will seek to involve communities in conversations about our priorities for action to reach the vision. Mining can be included in these conversations along with other topics about our natural environment and would be one of many topics discussed, and so won t be singled as a single issue that on its own could raise the level of controversy. The Far North Sustainability Strategy is envisaged to include a framework for decision-making into the future, so a position statement may not be required. Stand-alone Council could undertake a full consultation process to gain community opinions to inform a Council position on the issue of mining. This option would require staff to develop and implement a consultation plan to engage communities about their opinions on mining. Consultation on a specific topic such as mining has a high degree of risk of controversy, may polarise communities and would need to be designed to engage comprehensively. Council would need to be clear what it would Document number A Page 3 of 5

4 use the community feedback for i.e. to develop a position and whether it would then re-consult on the position, and how this position would be implemented. This option could be complemented by the survey option, as a first step. It should be supported by information (as recommended under the survey option). BAU Undertake informal workshops and conversations as part of business as usual (BAU). The option proposes to seek opinions about mining within Council s usual stakeholder engagement, for example, it can be part of the District Plan consultation. It is not recommended that these conversations occur as part of the Annual Plan 2016/17 process as the lead in time for that consultation is short and Annual Plan consultations are now designed to be focused on the key changes from the LTP. As part of BAU Community Development Advisors could seek opinions from groups they engage with. If combined with the survey option, it could provide qualitative information to support the quantitative results of the survey. 3) Financial implications and budgetary provision Undertaking a random sample of community views, and developing an information pack to support an informed opinion is not currently budgeted for, however it is likely to be covered within unspent budget in the Strategic Policy area. Quotes from an external provider would be required. A posted invitation to an online survey, followed by a reminder with a paper questionnaire would hopefully yield about 15-20% response rate. For 3,000 invitations this would cost approximately $10,000-$15,000. A standalone consultation would be the most expensive option, and is not currently budgeted for. It is likely to be in the region of $50,000 if people are to be given multiple channels to be heard (and if the option to survey is also included). The development of the Sustainability Strategy is currently budgeted, as is the review of the District Plan and community planning. Integration into these processes is cost effective. 4) Reason for the recommendation Undertaking a random survey of people who live in the district would be a good first step to understanding the level of interest on mining in the wider community and would determine the level of feeling about the issue. The results could then inform further consultation if or as required. Manager: Kathryn Ross - General Manager Strategic Planning and Policy The following attachment was presented to the 30 October 2014 Council meeting which is available on the Council s website at: archive/ council-agenda/ council-11.5-position-paper-on- Mineral,-Oil-and-Gas-Extraction.pdf Attachment 1: Position Paper Mineral, Oil and Gas Extraction - Document number A Document number A Page 4 of 5

5 Compliance schedule: Full consideration has been given to the provisions of the Local Government Act 2002 S77 in relation to decision making, in particular: 1. A Local authority must, in the course of the decision-making process, a) Seek to identify all reasonably practicable options for the achievement of the objective of a decision; and b) Assess the options in terms of their advantages and disadvantages; and c) If any of the options identified under paragraph (a) involves a significant decision in relation to land or a body of water, take into account the relationship of Māori and their culture and traditions with their ancestral land, water sites, waahi tapu, valued flora and fauna and other taonga 2. This section is subject to Section 79 - Compliance with procedures in relation to decisions. Relationship with existing policies and Community outcomes. Possible implications for the relationship of Māori and their culture and traditions with their ancestral land, water, site, waahi tapu, valued flora and fauna, and other taonga. Views or preferences of persons likely to be affected by, or to have an interest in the matter, including persons with disabilities, children and older persons. Does the issue, proposal, decision or other matter have a high degree of significance or engagement as determined under the Council's Policy #2124? If the matter has a Community rather than a District wide relevance has the Community Board's views been sought? Financial Implications and Budgetary Provision. Chief Financial Officer review A position paper on land based mineral, oil, and gas extraction was developed on October 2014 Māori have strong views on protecting the land and environment. A random survey should ensure appropriate initial engagement but can be augmented once next steps are agreed. No particular impact It could become controversial. District wide relevance If it is agreed a survey will be undertaken, budget will be required for the survey and developing the information pack to support it. This is likely to be covered by unspent funds in the strategic policy area (2811). The Chief Financial Officer has reviewed this report. Document number A Page 5 of 5