Back in the early 1980's, Robert Muldoon was thinking big. He wanted a giant dam on the Clutha River, which would flood half a town. But the courts applied the law, and wouldn't grant water rights for it. So Muldoon passed special legislation to overturn the court's decision and grant the water rights directly for his pet project. It was an unpleasant example of the naked authoritarianism and contempt for the rule of law that pervades our executive, and the National Party in particular.
Fast-forward 40 years, and the regime is again thinking big, and again has a pet project: an LNG terminal in Taranaki to keep gas prices high! But not even their corrupt fast-track law is fast enough for them, because it will actually have to look at evidence (and might even find it wanting if the applicants do the usual half-arsed job). So of course, they're simply going to legislate "consents" into existence, bypassing any pretence of due process:
A proposed liquefied natural gas terminal will bypass even the fast-track process in order to be built in time for winter next year, documents show.Winter 2027 is an entirely arbitrary deadline, aimed more at getting things done before the election, in the hope that this will prevent the next government from cancelling their bullshit. But what ones Parliament legislates, another Parliament can change, so any legislated consents can simply be cancelled and the contractor told to go fuck themselves. Alternatively, a future government could change the target of the levy from electricity to gas users, thus ensuring that the gas industry pays for its own insurance policy. And if they don't want to, well, why the hell should we?[...]
The Cabinet paper, released after the announcement, noted that "timing is very tight" to get the facility up and running in time for winter 2027.
"An LNG terminal will require regulatory consents and approvals if it is to be operational ahead of winter 2027, and the existing Fast-track Approvals Act 2024 processes are unlikely to be sufficient," Watts wrote.
"I propose developing an Enabling Liquefied Natural Gas Bill to provide the necessary consents, approvals, levy power and any modifications to existing legislation to enable the preferred LNG facility to be built and operational ahead of winter 2027."
Meanwhile, Christina Hood highlights MBIE modelling, (p 24 here) which shows that the regime's policy is really not the best one:
Sure, LNG will reduce electricity prices by $11/MWh a year in 2028 (and $58/MWh in a dry year). But bringing supply and demand back into balance will reduce them by $59/MWH ($123/ MWh in a dry year), and even more if we develop additional gas storage. The savings from that are about $1.4 billion a year (vs $265 million for LNG). And it would be cheap: about $200 million, or about one year of National's bullshit electricity levy. So why didn't they look at that?
The answer is obvious: because reducing gas demand is not what the gas industry wants. Avoiding that, and keeping its addicts supplied with their dirty fuel, is the entire point of an LNG terminal! Likewise, the electricity industry does not want lower electricity prices, because that means lower profits. So, we get a stupid policy, designed purely to protect the status quo and keep prices high. This is what National calls a "laser focus on bringing down the cost of living".
We deserve better than this. The next government should cancel this bullshit, fund a massive switch of industrial energy from gas to renewables (and a massive boost in renewable electricity to fuel it), and let the gas industry die in the bed it made. And we'll all be better off that way.
