New Zealand approves Oil Pollution Levy for 2019-22

New Zealand’s Cabinet has approved the mid-point review of the Oil Pollution Levy (OPL) to reflect updated risk and to ensure Maritime NZ can deliver on the current Marine Oil Spill Readiness and Response Strategy. The OPL funds New Zealand’s maritime oil pollution preparedness and response system.

Maritime NZ consulted with the maritime, oil and gas industries, on three options as part of the recent OPL mid-point review.

Maritime NZ Director, Keith Manch, says the majority of submissions received supported Option 2 (as outlined in the consultation document) – adjusting the OPL to maintain the target revenue for the period 2019-22 as consulted on in 2015/16.

There was general support for the chosen option and proposed changes. The chosen option, supported by careful planning and allocation of resources, will ensure most of the Marine Oil Spill Readiness and Response Strategy is delivered by 2022 as intended,

…said Mr. Manch.

New Zealand approves Oil Pollution Levy for 2019-22

Six maritime sectors make contributions to the OPL, each paying a risk share based on latest national and international accident and incident data, and New Zealand data for vessel routes and numbers, volume and type of oil carried, and environmental impact information.

The levy reflects updated risk shares, based on this latest data, meaning some sectors pay more and some pay less. Although the likelihood of a major marine oil spill is low, the environmental, financial and cultural impacts of such an incident could be hugely significant. This mid-point review comes three years into our six year capability improvement programme. Maritime NZ has made significant progress to date replacing older equipment, and increasing New Zealand’s ability to respond to oil spills further from shore,

…says Mr Manch.

Revenue generated by the OPL funds a range of activities and services, including Maritime NZ’s Marine Pollution Response Service; the maintenance of, and investment in, equipment and capabilities to respond to oil spills; and oversight and assurance of the response services provided by the oil and gas industry, maritime operators and regional councils.

The adjusted OPL will take effect from 1 July 2019.

New Zealand’s maritime sector in the numbers (annually)

4.1% of GDP ($260 billion)

99% of New Zealand’s trade by volume

1 million Cook Strait passengers; 7,000 crossings; 230,000 vehicles shipped across the Cook Strait

2,750 visits by foreign vessels; 800 visits by cruise liners

1.8 million export and import containers moved

4 million tonnes of freight shipped annually.