1 00:00:00,200 --> 00:00:02,680 Speaker 1: Fuel Security Plan. The idea is we build medium to 2 00:00:02,720 --> 00:00:06,040 Speaker 1: long term resilience and reduced dependency on global markets. So 3 00:00:06,080 --> 00:00:09,440 Speaker 1: we're supporting domestic fuel alternatives, investing in critical infrastructure and 4 00:00:09,480 --> 00:00:12,920 Speaker 1: stockpiling national reserves. That is this morning's news. Shane Jones 5 00:00:12,960 --> 00:00:15,560 Speaker 1: is of course the Associate Energy Minister and is with us. 6 00:00:15,560 --> 00:00:16,360 Speaker 1: Good morning to you. 7 00:00:17,280 --> 00:00:18,160 Speaker 2: Hey morning folks. 8 00:00:18,320 --> 00:00:21,040 Speaker 1: Now what are we actually doing things as of today 9 00:00:21,120 --> 00:00:22,000 Speaker 1: or just announcing this? 10 00:00:23,840 --> 00:00:27,600 Speaker 2: No, since the refinery closed down, we've shifted the focus 11 00:00:27,600 --> 00:00:30,440 Speaker 2: away from the Middle East. We draw our refined fuel 12 00:00:30,640 --> 00:00:34,040 Speaker 2: from Asia. There's always going to be some geopolitical uncertainty 13 00:00:34,120 --> 00:00:38,360 Speaker 2: up there. So we've introduced twenty eight days storage obligations 14 00:00:38,400 --> 00:00:41,440 Speaker 2: for petrol, twenty one days for diesel, I think twenty 15 00:00:41,440 --> 00:00:46,199 Speaker 2: four days for aviation fuel and expanded those obligations on 16 00:00:46,280 --> 00:00:52,080 Speaker 2: the oil companies who so briefully sold the refinery. 17 00:00:52,479 --> 00:00:55,080 Speaker 1: Indeed, the critical infrastructure that we talk of, is that 18 00:00:55,280 --> 00:00:57,320 Speaker 1: needing to be built or have we got enough of 19 00:00:57,360 --> 00:00:58,720 Speaker 1: it to do all the storage? 20 00:00:59,280 --> 00:01:03,280 Speaker 2: Yeah, this is about one hundred and eighty million leaders 21 00:01:03,360 --> 00:01:06,200 Speaker 2: worth a capacity up there at Marsden Point and around 22 00:01:06,200 --> 00:01:09,000 Speaker 2: a Mount Monganui and other places in the South Island. 23 00:01:09,640 --> 00:01:11,720 Speaker 2: But the bottom line is you need a plan in 24 00:01:11,760 --> 00:01:16,000 Speaker 2: the event that there's some geopolitical, egregious event, how do 25 00:01:16,040 --> 00:01:18,759 Speaker 2: you ration and over time, how do you move your 26 00:01:18,800 --> 00:01:23,080 Speaker 2: economy onto other sources of fuel. Now I'm not really 27 00:01:23,080 --> 00:01:25,200 Speaker 2: a doubting Thomas, but I've yet to see this bio 28 00:01:25,319 --> 00:01:28,399 Speaker 2: energy thing make commercial sense. Yes, in the face of 29 00:01:28,840 --> 00:01:29,759 Speaker 2: cheaper alternatives. 30 00:01:29,760 --> 00:01:32,000 Speaker 1: Well, I was going to what's a domestic fuel alternative? 31 00:01:32,000 --> 00:01:32,440 Speaker 1: What is that? 32 00:01:34,000 --> 00:01:36,440 Speaker 2: Well, if you listen to in New Zealand, they want 33 00:01:36,520 --> 00:01:40,679 Speaker 2: to create a new type of aviation fuel that blends 34 00:01:40,760 --> 00:01:44,480 Speaker 2: bio energy into the aviation fuel and possibly do that 35 00:01:44,560 --> 00:01:48,840 Speaker 2: at Marsden Point. Marsden Point will never deliver that potential 36 00:01:48,880 --> 00:01:51,639 Speaker 2: unless it's going to bespoke planning process like a special 37 00:01:51,720 --> 00:01:54,360 Speaker 2: economic zone. But that's a discussion for another day. 38 00:01:54,480 --> 00:01:55,960 Speaker 1: Yeah, how real is that? Because you've been going on 39 00:01:56,040 --> 00:01:58,200 Speaker 1: about Marsden for ages and didn't we look at Marsden 40 00:01:58,200 --> 00:02:00,760 Speaker 1: to decide where it's just as much as we would 41 00:02:00,880 --> 00:02:02,600 Speaker 1: like to, we just count afford it. 42 00:02:04,200 --> 00:02:05,880 Speaker 2: I mean, the bottom line was I was told it 43 00:02:05,920 --> 00:02:08,160 Speaker 2: could cost up to four to six billion dollars to 44 00:02:08,200 --> 00:02:11,679 Speaker 2: recapitalize it. Well, a lot of luddite. There's no way 45 00:02:11,720 --> 00:02:13,680 Speaker 2: that the crown has got that sort of dough. So 46 00:02:13,720 --> 00:02:17,440 Speaker 2: we work with the board up there and the CEO. 47 00:02:17,560 --> 00:02:20,040 Speaker 2: I mean the board's led by a chap called James Millar, 48 00:02:20,040 --> 00:02:22,440 Speaker 2: I'd say, one of the brightest commercial leaders in New Zealand, 49 00:02:22,480 --> 00:02:24,760 Speaker 2: and he's come up with a plan. It may or 50 00:02:24,760 --> 00:02:27,519 Speaker 2: may not one day involve the American military using those 51 00:02:27,560 --> 00:02:31,359 Speaker 2: facilities as well as they spread their risk management plan 52 00:02:31,440 --> 00:02:37,639 Speaker 2: around the Pacific. Obviously, the actual morphport has tremendous capacity 53 00:02:37,680 --> 00:02:40,400 Speaker 2: to import more fuel. But the bottom line is this 54 00:02:40,560 --> 00:02:44,400 Speaker 2: proposal enables us to store more and ensure that New 55 00:02:44,480 --> 00:02:47,880 Speaker 2: Zealand focuses on the vulnerabilities. It's not the most colorful 56 00:02:47,960 --> 00:02:52,920 Speaker 2: news of the day, certainly doesn't match my Maori relations 57 00:02:52,960 --> 00:02:55,640 Speaker 2: sort of loss in a snoop dog moment in their 58 00:02:55,680 --> 00:02:58,680 Speaker 2: own party, but it's stuff that keeps the economy going. 59 00:02:59,200 --> 00:03:01,280 Speaker 1: Have you just announed it's the American military are going 60 00:03:01,320 --> 00:03:03,960 Speaker 1: to set up a base here and un nuclear submarines coming. 61 00:03:06,440 --> 00:03:09,440 Speaker 2: I really think, mate, that we've got a brilliant port. 62 00:03:09,440 --> 00:03:11,919 Speaker 2: We're going to have a dry dock facility, We're expanding 63 00:03:12,000 --> 00:03:17,720 Speaker 2: north Port and I've always been a supporter to involve 64 00:03:17,840 --> 00:03:21,840 Speaker 2: the American military in regarding New Zealand as a great 65 00:03:21,880 --> 00:03:25,240 Speaker 2: place for storage purposes and one day perhaps even to 66 00:03:25,360 --> 00:03:28,320 Speaker 2: use our dry dock facility. It's well I campaigned on 67 00:03:28,360 --> 00:03:29,680 Speaker 2: that in twenty twenty. 68 00:03:30,280 --> 00:03:33,440 Speaker 1: Okay, by the way, business Desk grand a story yesterday. 69 00:03:33,880 --> 00:03:37,680 Speaker 1: Less than ten percent your provincial growth fund less than 70 00:03:37,680 --> 00:03:39,880 Speaker 1: ten percent has been repaid. Is that a story or 71 00:03:39,920 --> 00:03:40,480 Speaker 1: not a story? 72 00:03:41,920 --> 00:03:44,640 Speaker 2: No, A lot of the debt that was entered into 73 00:03:44,760 --> 00:03:46,600 Speaker 2: I mean quite a b a fabit of the debt 74 00:03:46,640 --> 00:03:49,720 Speaker 2: has been paid back of large amounts. However, a lot 75 00:03:49,760 --> 00:03:52,080 Speaker 2: of this debt was spread over a long period of time. 76 00:03:52,520 --> 00:03:55,480 Speaker 2: And it's like any sort of blending institution, you have 77 00:03:55,560 --> 00:03:58,360 Speaker 2: a few that are difficult to manage, and the others 78 00:03:58,400 --> 00:04:00,760 Speaker 2: just carry on and they pay their way going forward. 79 00:04:00,800 --> 00:04:05,840 Speaker 2: And often the PGF chose areas where the private sector 80 00:04:05,880 --> 00:04:09,520 Speaker 2: was never going to do, such as recapitalizing water storage 81 00:04:09,560 --> 00:04:12,440 Speaker 2: and parts of New Zealand that the market just can't 82 00:04:12,440 --> 00:04:14,760 Speaker 2: find a commercial solution to. Look, it's always going to 83 00:04:14,800 --> 00:04:17,200 Speaker 2: be used where they should the crown have had to go. 84 00:04:17,320 --> 00:04:19,600 Speaker 2: Should it make take a risk, It section some work 85 00:04:19,640 --> 00:04:20,560 Speaker 2: and some dope work. 86 00:04:20,920 --> 00:04:24,960 Speaker 1: Nice doctor has always Shane Jones, Associate Energy Minister. For 87 00:04:25,080 --> 00:04:28,080 Speaker 1: more from the mic Asking Breakfast, listen live to news 88 00:04:28,160 --> 00:04:31,080 Speaker 1: talks that'd be from six am weekdays, or follow the 89 00:04:31,120 --> 00:04:32,560 Speaker 1: podcast on iHeartRadio