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1 Introduction

1.1 Background

The Ministry for the Environment (MFE) is leading the whole-of-government development of an Oceans Policy that will enable the integrated and consistent management of the Ocean Territory within New Zealand’s jurisdiction.

New Zealand’s Ocean Territory encompasses close to 6 million square kilometres (or 15 times its terrestrial landmass), representing approximately 1% of the Earth’s surface. However, only a very small part of it has been surveyed to date. Early indications suggest vast and potentially valuable resource opportunities, including:

  • hydrocarbon deposits worth approximately NZ$100 billion and Manganese deposits worth approximately NZ$200 billion2

  • phosphoric deposits (for use in agriculture) on the Chatham Rise worth approximately NZ$10 billion3

  • the largest methane hydrate deposits in the South Pacific.4

However, New Zealand’s ability to realise the economic potential of these resources is limited by a number of factors. These include:

  • the ‘frontier’ nature of the proposed activities and consequently high investment requirements

  • access to and availability of cost effective ‘enabling’ technology

  • appropriate legislative, regulatory and policy frameworks

  • access to markets and margins that would justify commercial development.

MFE has sought to gain a better understanding of these factors by commissioning an investigation into barriers to the commercial development of three new economic opportunity cases. The aim is to ensure that the new national Oceans Policy framework will have the ability to support the sustainable development of such opportunities.

1.2 Purpose and Scope of Consultancy

The purpose of the project was for Centre for Advanced Engineering (CAE), by consulting with a range of marine sector representatives, to bring a business-focussed perspective of the potential barriers to the commercial development of maritime opportunities; and to provide practical examples of corresponding strategies or interventions to overcome them.

The scope of the project was limited to consultation interviews with approximately 15 respondents to highlight and illustrate through case studies, the key ingredients for development of commercial activities. It addresses three new specific maritime opportunity cases at different stages of commercial maturity. Consequently, this report is not intended as an exhaustive solution to the challenges of formulating appropriate policies for each of the resource opportunities highlighted, nor does it provide conclusions that are applicable across the entire marine sector. Instead it attempts to offer an assessment of the range of interven tions that can assist with development of commercial activities.

2 Dominion Post newspaper, Wellington 13 October 1999, p 11.

3 Centre for Advanced Engineering (1996). New & Emerging Renewable Energy Opportunities in New Zealand and (2003). Economic Opportunities in New Zealand’s Oceans. Report to the Oceans Policy Secretariat, Ministry for the Environment, p 6.

4 CAE (2003) Economic Opportunities in New Zealand’s Oceans, p 5.

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