The Auckland fuel crisis will attract political attention right through to polling day, it seems, with Labour stepping up its attacks on National while Energy Minister Judith Collins maintains the government is doing all it can to help the private companies involved deal with the situation.
The NZ Herald on Monday morning led its front page with the explosive headline, "Fuel crisis make or break for Nats."
Meanwhile, the number of Z Energy petrol stations without 95 octane fuel has reportedly risen from four to 13 over the day.
Labour Party leader Jacinda Ardern told reporters in Wellington that National had failed to act on recommendations in 2012 on improving Auckland Airport's resilience to the pipeline going out of action. She indicated she favoured the idea of greater storage facilities at Wiri, near the airport, in case this happened again.
Labour economic development spokesman Stuart Nash also waded into the debate, saying the situation was causing non-perishable exports to be taken off planes. He also said airport freight workers were having shifts cancelled.
The Greens on Tuesday said the fiasco showed how loose New Zealand's rules around swamp Kauri extraction were.
See Nash's statement below:
Export freight is being shifted off flights because of the Government’s failure to manage the risk of disruption to jet fuel supplies, says Labour’s Economic Development spokesperson Stuart Nash.
“It has been revealed to Labour that non-perishable export freight is being removed from flights to lighten the load because of the jet fuel crisis, and workers are turning up to work at Auckland Airport and finding their shifts cancelled.
“We understand that workers for foreign airlines, who don’t enjoy the same level of benefits as those contracted to Air New Zealand, are especially affected.
“Rosters are changing, crews are being turned away. Yet nothing has been said by the Government to make sure these workers are being looked after. They still have bills to pay too, Bill.
“The role of any Government is to know the risks, and prepare for them. We have clear evidence that this Government discussed the risks in a 2012 Cabinet Paper, and chose to tinker instead of building genuine resilience into the supply network.
“This is the 21st century and in a modern country a digger driver shouldn’t have such a serious impact on our national economy. This is a failure of leadership and management by National.
“There are serious questions of the Government’s handling that remain unanswered.
“We’re aware that freight is being removed from flights. How much, and what is the Government doing to mitigate the potential losses for our exporters?
“What will be done to support workers who find their shifts have been cancelled or curtailed?
“If the damage was known last Thursday, why did it take three days for it to become known, so our businesses, travellers and freight companies could better prepare for the impact?
“And if National really is the party of infrastructure, how could they sit back in full knowledge of the risks of disruption to the fuel supply without planning for better storage of fuel reserves?
“The answer is that the Government doesn’t have the answers. They’ve been caught out, and it’s our exporters, travellers, businesses who’ve been harmed, and New Zealand’s reputation along with it,” says Stuart Nash.
Energy & Resources Minister Judith Collins released the following update Tuesday afternoon:
The Government is actively supporting industry efforts to address the disruption arising from the Marsden Point fuel pipeline outage, Energy and Resources Minister Judith Collins says.
“The Government is continuing to identify and implement a range of measures to free up the movement of fuel to where it is needed, and minimise disruption to Kiwi and visitors.
“While air travel will continue to be affected until the pipeline is fully operational, the fuel industry has advised government that impacts on petrol and diesel supply for motorists are minimal,” Ms Collins says.
The New Zealand Defence Force is providing significant logistical support to assist in the movement of fuel and taking measures to supplement supply.
“NZDF have taken steps to reduce its jet fuel demand and further options to help fuel supply are being worked through.
“They are currently talking with industry about when and where the 20 Category 5 NZDF tanker drivers and 2 trucks can best be deployed to transport fuel.
“We’re moving on several fronts in transport to do everything possible to improve supply. The NZTA are assisting with resources, systems and processes to allow Over Weight Permits (OWP’s) to be processed quickly. This includes ensuring the routes cause minimal disruption to the roading network.”
Weight restrictions have been lifted by 15 per cent for fuel tankers and a number of other measures are also being progressed including:
- Removing restrictions on when fuel can be delivered to service stations and truck stops
- Allowing fuel tankers to us bus and transit lanes
- Extending the permissible driving hours where safe to do so
The Government is also acting to minimise impacts on travellers. Immigration NZ is providing advice to clients whose NZ visas are at risk of expiring due to cancellations or postponements. Any people whose visas are due to expire will be given an electronic visa free of charge.
Read the Greens' statement below:
Speculation over the cause of the aviation fuel pipeline fiasco shows how loose the rules around swamp kauri excavation are, the Green Party said today.
“The fact that no one seems sure whether or not digging for swamp kauri was the cause of the pipeline rupture highlights, once again, how loosely the Ministry for Primary Industries and Northland Regional Council control and monitor swamp kauri exploitation,” said Green Party environment spokesperson Eugenie Sage.
“Swamp kauri excavators can just dig up land looking for swamp kauri without having to get a resource consent to do so, as long as it’s not in what the Regional Council considers indigenous wetland. No one appears to keep good records of where and how the excavation is happening.
“Swamp kauri exploitation is the worst sort of gold rush with virtually anyone able to dig up ancient kauri and ship it offshore with little regard for the environment or major infrastructure like fuel pipelines.
“If that is what has happened here, it shows how vulnerable our environment is to plunder by swamp kauri excavators, and the failure to have proper land use controls and management of the pipeline corridor.
“Swamp kauri excavation does huge damage to wetlands by destroying vegetation, wetlands, and natural water flow and drainage patterns. This degrades habitats and ecosystems.
“New Zealand has already lost 90 percent of wetlands, which act as kidneys in the landscape; filtering and cleaning water. We can’t afford to lose any more because of loose rules that don’t protect our environment from short term exploitation," Ms Sage said.
95 Comments
My goodness ... as if we desperately needed an event to MOAN hard about and make it a political football - this cheap backstabbing and opportunistic comments is really disgusting - all opposition parties are just trying to get a moment in front of the cameras and have nothing to offer other than Blame.... This is how low NZ politics have gone down to in an election year - just shameless moaning and looking for a pound of flesh....
No one wants to think rationally before opening his/her trap - an underground oil pipe is one of the most secure and safe installations - the probability of having a pipe burst anywhere in the refinery itself or any other catastrophic fault is much higher than bursting an underground pipe!! .. well, until an idiot persistently digs it out !!! - In 2012 NZ was still borrowing money to cover all sort of other disasters - but as usual no one wants to know !!
The other do gooders who are fueling this event is the Media ... just wanted funeral to grieve and moan ...
It is pathetic, but don't lie to yourself and think for a second National would be above doing the same thing.
I say fair game to all f the parties leveraging this - if National has a problem with it, they only have to look at how dirty their tricks have been over the past month.
I did not name a specific party as they are all doing it ... but to ride on the back of people's misfortune and blame the Gov (whoever they are) for something owned by private sector and a fault done by an idiot is a bit too blatantly dirty ... No one is clean in politics ... but there are limits and shame ( well, if there is any left)
..I blame Judith...she's promoted the raw export of kauri.
Enjoy the last week Eco Bird...the way you are going you'll be having a breakdown Sat night as we welcome in the Lab/Green govt.
It will be good to see the end of the crooks, a good clean out, a purge and one hopes, the rise of an honest and moral right - a party i could once again consider voting for.
:) .... doesnt worry me mate - we always make hay whether it is Shine, hail, or snow ...we just make a bit less when snowing green frogs ( God forbid) ... if the proverbial hit the fan then it will just be another 3 years until a mistake is corrected ... and corrected it will, ironically by the hands of the same people who caused it !...
the fridge is stocked and the nibbles will be ready in time ... looking forward to the "Day after" :) ... enjoy the ride ...
Buried pipe lines are secure under ground ... but nothing is idiot proof in this country even ..a pipeline !!
The Media ? Well, if you listened to the One new at 6 tonight and read the Herald and Stuff today you would think that WWIII has started and the oil fields in Arabia have been bombed ... they are blowing things and creating Drama --- to me , they are making a fool of themselves .. and we are allowing them to do that !!
They are exploiting people's sentiments ...lol, they bring in someone who says don't panic it is under control and yet their headlines and reports are just creating the Panic ...
Has anyone seen any reporting on what commercial entity the digger driver was working for?
I saw this company raised in another blog - but couldn't find any reporting on it;
https://coys.co.nz/company/?no=3518811-KAURI+RUAKAKA+LIMITED
https://publicaddress.net/envirologue/swamp-monsters-the-looting-of-nor…
Not to say it is a correct account - in that we have this report;
So it hasn't recently been damaged:
The marks were apparently evident even though the pipe had apparently since corroded to the point where it burst under pressure.
Apart from the marks it noted on the pipe, Refining NZ has not yet advanced any other evidence the pipeline was damaged by a third party.
Speculation that the pipe might have been damaged during Kauri extraction have not so far proved possible to substantiate.
https://www.stuff.co.nz/business/industries/96994962/questions-begin-to…
It's dreary stuff but the MSM see an angle. "Highly acidic conditions are extremely corrosive and even cause decay in acid resistant concrete and metals, such as those used in stormwater assets. This is particularly relevant to structures intended to have a longer life expectancy, such as those associated with the Pūhoi to Warkworth motorway. The oxidation process occurs naturally but may be induced by human activities. Although understood in some other parts of the world, acid sulfate soils in New Zealand has received very little research."
Acid soils there corrode. Not really that weird at all.
"The Marsden City development at Ruakaka, south of Whangarei, will need drains replaced because of soil acidity problems unforseen by the developer or the council.
When developer Oliver Scott built the subdivision, he predicted 2000 homes, businesses and new industry for the 80-hectare site.
One global financial crisis later and the company's in receivership; infrastructure valued at $11 million has been written down to about $2m, and all the pipes will eventually have to be replaced.
The cause, according to Whangarei Council, was the collapse of the concrete pipes, corroded by acid soil and water."
Proof: the digger did it;
Refining NZ had "clear evidence" the 170 kilometre pipeline that pipes fuel from the Marsden Point oil refinery had been struck, with digger teeth marks visible at the location of a 20 centimetre tear in the pipe.
"It is very clear and independently confirmed by the Lloyds' verifier that a digger has dented and scraped over the pipe with quite significant force."
https://www.stuff.co.nz/business/industries/97041095/damaged-auckland-f…
Apologist government runs interference with media ... the more you dig the worse it gets
The value of Kauri Ruakaka’s holdings of logs has been estimated at $50 million
June 2015
Public Address wonders why, while Northland suffers deprivation and economic stagnation, Maraetai Drive (Auckland) millionaires (Wong-Tung and business partner, Deyi Shi) are allowed to strip the province of its natural resources, tear up its wild places and reap outrageous profits while an apologist Government runs interference in the media
https://publicaddress.net/envirologue/swamp-monsters-the-looting-of-nor…
Try this for an eye-opener
Reported here in interest.co.nz in 2014
http://www.interest.co.nz/news/69723/review-things-you-need-know-you-go…
Gets better by the day - check out Rod Emmerson's cartoon in todays Herald
https://twitter.com/rodemmerson/status/910221014793019393
If NZ has any investigative journalists left, they should be trying to find out who did the digging and who the landowner is. Then they could look at why a cabinet minister might be financially involved in something as controversial as swamp Kauri exporting. Any connection between the two is political dynamite.
Politics aside, if this https://www.facebook.com/ActionStationNZ/photos/a.231204660335083.49804… is true, it really boils my piss. I was applauding National's approach to multi-national taxation, I believe the Green's pushed for this as well, but I'm thankful to whatever party actually decides to do something about it. Hopefully something all parties agree with.
You need to qualify that claim.
They must pay PAYE on all salaries and wages of everyone they employ inside NZ and cannot avoid GST on goods and services they consume in the normal course of their businesses.
At the very best you could claim they paid no net corporate tax for some period of time. Which would be a very hard act over any lengthy period because tax departments have many rules about these things.
For examples:
If you claim never to have made any trading profit they can rule you are not a *real* commercial trading entity.
If you claim all the profit overseas they can apply transfer price rulings against you and tax you at what they rule to be a *fair* profit rate.
Because the people they employ pay tax, you're saying the company pays it? Could you run that by me for a sec? I earn $10 and pay $2.50 in tax, but I didn't really pay that tax my company did? Could have sworn I was the one who ended up $2.50 down on that arrangement.
I'm guessing you're an accountant?
The retirement village corporate sector run much the same line - pointing out that their shareholders pay (their) tax on profits earned!
The PAYE is a tax on the income the employee earns - this has got nothing to do with the company other than the filling out a few forms, recording amounts and sending it to IRD.
GST is a consumption tax. Again, nothing to do with the company - it's all paid by the consumer.
While many business owners see this money coming out of their business account and think that that money is somehow theirs and its being taken away by the IRD - its actually not, GST and PAYE money is held on trust for the IRD and employee until paid to the IRD. This exact argument pops up way too often and I get tired of seeing it. PAYE and GST are not taxes on the company.
Regarding your other points - it would probably take a bit more looking into the company financials for anyone to argue for or against. You are correct re: the transfer pricing. Lots of funny business can happen.
Too bad IRD is going through a massive restructure right now or they might actually have the manpower to investigate...
And on that IRD restructure, here is a former insider's opinion on that.
As the first commentator on the article said, "I don’t see this ending well for the country."
https://letstalkabouttaxnz.com/2017/07/27/right-from-the-start/
In regards to Auckland Airport, it is the airport's own fault.
A proper risk management assessment would have pushed the airport to secure additional on or offsite storage to deal with an outage over the period required (looks like 1-2 weeks) to get alternative transportation of jet fuel to the airport. The airlines should be suing the airport.
It would seem the airport has been too focused on dealing with the exceptional passenger growth at the airport, and too little on operational resilience. Both are required.
This again highlights yet another risk associated with very high immigration rates - it stretches the ability to plan and operate within reasonable risk boundaries..
I'm usually pushing the 'lets get immigration in line with other countries' line but I think you are pushing it too far here. It is logical to plan for growth in passengers; must be true at every reasonable airport in the world. Auckland's growth hasn't been business passengers but it has been dramatically increased tourism which I would love to put down to the rest of the world seeing what a great country New Zealand is but I reckon is probably caused by ISIS bombing the USA and Europe.
Hi Lapun,
I don't disagree, tourism is an added significant growth component, it isn't just immigration driving passenger numbers. However the distinction between tourism & immigration is grey.
Some of the immigration is short term visas, effectively tourists, and many immigrant that arrives here will either take overseas trips or have family or friends from overseas visit.
i have always wondered why Auckland airport has never looked at shipping its fuel supply in, the channel is deep enough to bring a ship up, they would have to look at investing in offshore unloading wharf
http://www.alamy.com/stock-photo-oil-tanker-unloading-oil-in-freeport-b…
You are kidding, right? Manukau Harbour is shallow, exposed to southerly blasts, and a dangerous bar. Yes, it has a channel but a ship tied up in the harbour in a storm risks a spill that would be very hard to contain. That is an everyday risk. The pipeline is a much lower risk option, despite today's event (which is a one in a decade risk).
There is a reason Auckland Harbour is on the Pacific side, not the Tasman side.
.. is this a good reason to shut down Ports of Orc Land , and to route all the container shipping through Tauranga and through Whangarei ?
Build the Orc Land port area up as a tourism and recreational boaties haven ... fancy pants malls , hotels , and a waterfront national sports ( rugby ! ) stadium ...
i know it well, my uncle was a captain that used to bring his ship into onehunga wharf years ago, used to tell us some great stories,
there is already a LPG terminal up the papakura channel
https://www.tideschart.com/New-Zealand/Auckland/Auckland/Papakura-Chann…
https://www.liquigas.co.nz/locations/
AKL has 120 long haul flights per day. A 777-300ER holds 181,000L of fuel. To store 10 days of fuel they'd need at least 217 million liters in tanks. Then you have short haul and freight. They'd probably need 20 of these huge tanks. You have to ask why not just build a second pipeline?
Then again it's not like the airport can't afford it!
NZ uses about 4million litres of aviation fuel per day. Auckland is probably going to be 50-70% of that. Call it 2million litres a day, or 20million litres storage for 10 days. That's a 35m diameter tank 20m tall kept brimming with fuel. Presents a big potential fire danger and $20-30million in fuel sitting around permanently doing nothing - costing probably $2million per year. Might be worth it. But given no issues in 30 years and dangers such a large tank presents, probably not.
... I vote Winston Peters to be our national tree ... forever rooted to one spot .... and given his wooden performances ...plus , barking at the journalists .... never turning over a new leaf .... swaying ever so slightly in the political breeze ... a little left , a little right .... whichever way the most fertilizer is applied ...
Up on his whine box ( timber ! )....
... yes , Winnie is our gnarly old national tree .... and Gareth " chainsaw " Morgan ain't TOPpling him anytime soon ...
RNZ interview this morning common sensical rather than political.
http://www.radionz.co.nz/national/programmes/ninetonoon/audio/201859030…
i think this goes to the mantra that private enterprise is best to run things until it goes pear shaped then the government is expected to step in which has become the way since the GFC
why should the state step in
surely private enterprise should step in and be made to spend to fix it up or at least recompense the state for the bill of stepping in.
to me its simple
lack of storage to cover any problem, which is a lack of investment
lack of maintenance of the pipeline, why did it take so long to discover the problem, is there no inspection of the pipe, pipe robots have been around for years
both problems of private companies and i am getting sick of private companies expecting to socialize losses so cutting expenses to maximize profits.
a well run company has good planning and does not cut corners
Not sure if anyone is talking about socialising losses .... the Gov is helping with what is possible and available to contain a problem ( as would any responsible gov do)... losses and costs will be sorted out later as the CEO of Mobile said on RNZ .. the main issue now is to prevent this stretching further ... simple.
... I heard that there is a " Plan B " in the pipeline ....
Ha haaaa haaaaa ..... sorry .... I couldn't resist .... someone had to say it ..... teeee heeeeeee ...
... apparently Helen Clark was informed in 2005 of the risks if something adverse happened to the fuel line ... but also chose to ignore the issue; so it's not solely Wild Bill and his Bumbling Hillbillies who are to blame ...
The 2005 Oil Security report was prominently about external supply risk and NZ was not compliant with recommended practice at that time. Namely having >90 days cover of net imports, this was remedied by the Clarke govt over the next few years.
http://www.haletwomey.co.nz/wp-content/uploads/2014/08/Oil-security-Feb…
This mornings interview with Ian Twomey, co-author of both reports (2005 and 2011):
http://podcast.radionz.co.nz/ntn/ntn-20170919-0908-petrol_pipeline_repo…
Only a very small amount of people come on sites like this. Word of mouth is winning Jacinda with the lovely smile a lot of votes over the last week or two. Everyone Iv spoken to has commented about the large amount of young people they have seen voting and how sick they are off national . Not a big complex discussion trying to bad mouth this and that. Just had enough and time for change. Really how could labour possibly do any worse than the mess national got us in. This needs fixing once and for all
Well put. I am no Labour apologist - I have voted for both them and the Nats several times each. Labour will be far from perfect, but intent is important and a key part of their intent is focussing on all the areas that the Nats have been negligent on.
Time for change
Fritz. The ones that rave on and on on here writing a list of rubbish on here a mile long are normally obsessed with national and have never and will never vote for anyone else . And it doesn't really matter what national does . Next they'll lie that they have voted for someone else to make themselves look good but we all know national are full of liars. It's just their way
Our third world-like amateurishness is now getting global attention:
http://www.bbc.com/news/business-41315994
Good lord they must be short of news these days. Perspective. Buncefield. Though I spose over flowing a tank isn't as exciting as a digger. "Deputy Prime Minister John Prescott has visited the scene of the blasts which injured 43 people, two seriously.
The fire chief described the incident at the Buncefield fuel depot near Hemel Hempstead, after 0600 GMT, as possibly the largest in peacetime Europe."
National delivering to NZ
Swamp kauri sawmill owned by Mr(sic) Collins is 2km from the hole. (see link).
http://thejackalman.blogspot.co.nz/2017/09/collins-and-swamp-kauri-petr…
Turns out MathsBoy Stevie was right after all. There is a hole and the damage is going to be massive.
Was it the Labour Govt first knew of this pipeline problem is 2005? I am sick of the media tv3 tv1 every time you turn on tv you see Jacinta promising everything with little substance.
Jacinta has gone down in my values , overkill I was going to vote for her but a promise for everything now really gets up my nose,
There maybe an earthquake tomorrow or an insurance company failure coming up that will change things
If Labour gets in the nutter Greens it will be a 3 year wonder
Pankers - see O4 Normal above at 17:08 - unfortunately the buck stops with the billshitter but watch him wriggle.
"It was her fault, it was Oravida, the sun was in my eyes, I don't know too much about it, it was an employment dispute between the digger and the pipe, I believe Steve - there definitely is a hole, this break in fossil fuel use is our planned adherence to our environmental targets, I very kindly passed onto the police everything I knew about Judith, I got a legal opinion that said I was not responsible for anything that happens in NZ, how about those All Blacks eh......"
Reporting of the election is becoming very shallow and one dimensional now. It’s popular social issues, domestic social issue and more bloody social issues. What about other areas of government like the military and security services, law and order, foreign policy etc?
Having policies around housing and not raising taxes is fine but actually those things are just a small part of running a governments duties. I think it somehow may be possible to have a third or fourth policy without confusing voters! It's almost insulting to New Zealanders at this point. Time to ask some more difficult questions.
Auckland for the Aucklanders!
Problem is flights from Sydney to Christchurch are delayed an hour, as the extra fuel and time taken to service Auckland ripples through airline flight network schedule!.
These people who administer Auckland, run Auckland, these people like Len, what do they do all day? Do they ever put in a night shift? How hard is it?
Well this is relevant.
David Fisher telling us that strong warnings were ignored by the billshitter.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=119…
Confirmed swamp kauri extraction a few years ago...
http://www.radionz.co.nz/news/national/339780/swamp-kauri-mining-at-fue…
The Oravida Kauri mill is 2km down the road with the next closest Kauri extractor located 40km away. The media are being very coy about confirming the company.
Jenny Shipley is chairman of Oravida and Judith Collins husband is a director.
Drip fed...
Drip managed, Drip political parties, Drip policies, Drip infrastructure, Drip Expenses, Drip Management, Drip Disaster Planning,
Drip Taxpayers ....Counting the cost...Plus paying for it with delays, upon delays and prevarication.
Poor tourists too. Poor citizens, don't have a home to go to. (Some of em).
Oh and drip feeding Houses.....what do you expect....Gotta keep the prices up at any cost....
The drips own all the rentals.....plus heavily leveraged. One tilt, one shake, one poor day.
If you have drips running the place, no Business sense, no Common Sense....then what do you really expect.
A deluge will be the next problem...never mind a single pipeline, Floods will cause more damage, especially when no one digs a little deeper., into it.
Especially if you build more houses on Flood Plains....with earthquakes in the pipeline.
Plain to see, Planes are just temporary problem...Drips ain't.
We have more than enuff thanks...
Drips that is....Oh and... was there not a fuel shortage, so prices have to be kept up high.....TAXed ...to the skies.....
To pay for our Dear Beloved...Leaders..Largess...among-st others. Nationally speaking..
So this swamp kauri is the same swamp kauri that is allowed by the National government to be exported to China as 'finished' .... a quick carving on the log suffices and then the Chinese, in China, can craft the increasingly rare logs into heirloom tabletops...
Of course, anyone with a digger will have been trying to get on the gravy train provided by our cabinet minister's husband.
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