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Labor says just transition is central to future energy policy

Broadcast United News Desk
Labor says just transition is central to future energy policy

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Megan Woods

Megan Woods said Labor wanted to learn from previous just transition pilots in Taranaki and Southland to see what worked and what didn’t.
photo: RNZ/Nate McKinnon

Labour hosted a forum on a just transition and began developing energy and climate policy ideas to be put forward at the next election.

This forum was held with great irony. Meanwhile, the government announced the resumption of offshore oil and gas explorationwhich aims to promote dialogue between unions, climate groups, local government and industry on how to develop policies to ensure workers and communities are protected in the transition to a low-carbon future.

Labor’s energy, resources and climate change spokeswoman Megan Woods said the party wanted to learn from previous just transition pilots in Taranaki and Southland to see what worked and what didn’t.

“We will continue to have dialogue with all political parties, just as we do in government, and importantly we also get those people to come together and find that when they come together, they actually agree on far more than they disagree on, and a really constructive and productive relationship can come out of that.”

Taranaki’s just transition is Offshore oil and gas ban to support the region’s transition to clean energy.

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New Plymouth Mayor Neil Holdom told the forum that while there had been some investment in projects such as Alaaque, there were still workforce issues.

“We’re not seeing investment in Taranaki’s tertiary education facilities to really support this transition. We’re losing 10 jobs a week. It’s not a lot of things that keep me awake at night, but I’m seeing a 20 per cent drop in GDP in my region,” he said.

“We New Zealanders are stingy. We are not willing to pay and our workers will be the first to be ripped off.”

New Plymouth Mayor Neil Holdom says local councils need to have enough space to invest in what the community needs. Photo: RNZ/Robin Martin. (Via LDR One-Time Use)

New Plymouth Mayor Neil Holdom said Taranaki’s GDP would be cut by 20 per cent as a result of the oil and gas ban.
photo: RNZ/Robin Martin

The forum also heard New Zealand Steel received $140 million in funding from the previous government to build a new electric arc furnace As part of the government’s investment in decarbonization industry funds.

New Zealand Steel managing director Maria Orchard said the transition was just a learning curve.

“How do we have a discussion around safety and certainty? Because we don’t think about job losses from electric arc furnaces. We clearly need to help our people learn to make steel differently.”

Other discussions focused on the types of renewable energy that should be developed.

Tuhi-Ao Bailey from Climate Justice Taranaki Not convinced that offshore wind and hydrogen are long-term transition solutions.

“We need something like solar energy that we can make here, that lasts 50 years, that is replaceable and recyclable,” he said.

Alex Johnston from Common Grace Aotearoa said the “will they or won’t they” question about the Tiwai Point closure highlighted the risk of not delivering a just transition.

“If they don’t provide fair treatment and resettlement for the workers, then what will the government do to fill the gap?” he asked.

“That’s a critical piece, and there may be a place-based shift until we have a full picture of what’s happening across the economy and what’s happening in individual industries that may face a quick exit, because we don’t want to be caught off guard and leave people stranded.”

Woods said the forum had highlighted the need for certainty.

In 2023, the Labour Party proposed to appoint a Minister for Just Transition at the election. Woods said that while all policies came back to square one, Just Transition was at the heart of many of the Labour Party’s policies and influenced the party’s thinking on many things.

“Every region is different, but it is vital that there is a partnership, whether it’s central government and industry, central government and workers, central government and local government. We have to be willing to work together.

“But the government cannot sit back and leave this to the market and think it will magically happen,” she said.

Labor’s spokespeople for finance, economic development, higher education, environment, small business and workplace relations and safety were in attendance at the forum, with Woods asking them to go away and think about how they could get involved.

Labor leader Chris Hipkins opened the forum by saying he was willing to work with the government on issues such as energy storage and solutions for dry years.

“I do think we need more stability when it comes to energy security. We are particularly willing to work with the current government if they are willing to work with us.”

Hipkins said Labor would not agree to restart oil and gas exploration, hours before the government announced it would.

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