Striking Aussie workers have implications for NZ oil and gas

The Maritime Union of New Zealand is supporting strike action in the West Australian offshore oil and gas sector and says the issue has implications for New Zealand.

Australia’s shipping industry for the oil and gas sector has been affected by striking Maritime Union of Australia (MUA) members since November last year.

The workers want pay increases at a time of rapid growth in the sector.

Maritime Union of New Zealand general secretary Joe Fleetwood said many New Zealanders worked in Australia’s maritime industry and a statement issued today was about showing solidarity and support for maritime workers around the world.

But the issue also had implications for New Zealand, where the oil and gas sector was expected to become more important to its economy over the next decade.

Mr Fleetwood said striking workers’ wages were spent in working class communities, while employers made vast fortunes in profits.

“This is about workers getting their share of the wealth they create. After all, they do the work out on the remote rigs and vessels, away from home for long periods and in a risky, heavy industrial environment.”

He said in Norway and Venezuela, oil and gas reserves were used to benefit their citizens and New Zealand should maintain close control of its oil and gas reserves, rather than allowing them to be exploited by private corporations.

The Maritime Union said it supports moves away from an oil based economy in the long term but there would be a transition period where oil and gas were still required and New Zealand had to make the most of that.

"This is a limited resource and one that is not having a positive effect on the environment. The wealth from our oil and gas reserves must be used to benefit our people and to move to a post-oil economy."

In November last year, Energy Resources Minister Gerry Brownlee announced an 'action plan' to encourage oil exploration (and therefore royalties). In the 2008/2009 year it earned in excess of $965 million from royalties and taxes, including $543 million from royalty payments alone.

Oil was the third largest export earner for the country in 2008, generating $2.8 billion – a 100% increase on 2007. It has the potential to earn $30 billion in export revenues by 2025.