Independent views By Brendan Horan

What I welcome this week is the start of hearings where thousands of ordinary Kiwis get to voice their opposition to strip-mining of the seabed for ironsands.

Trans-Tasman Resources is 98 per cent foreign-owned and is seeking to mine iron sands from the ocean off Taranaki. At the Environmental Protection Agency hearing, which opened early this week, just 11 submitters are in favour out of 4708 submissions in total.

Last week I asked Minister Steven Joyce in Parliament how he could justify allowing a 98 per cent foreign-owned company to plunder minerals for a paltry $5 million a year in net royalties. In reality, he has no justification at all.

The project does not make environmental or economic sense. The Government says there may be jobs, but Labour Minister Simon Bridges refuses to have any requirement for local labour content, so any job from the project, if it is approved, could go to overseas workers.

Trans-Tasman Resources is going to be taking minerals straight from the seabed. These have accumulated during millions of years. The minerals will be shipped direct to foreign countries without touching New Zealand soil. This will provide little if any benefit for our country. The idea is abhorrent to most New Zealanders.

Trans-Tasman's business case is great for them and a disaster for New Zealand. Their own studies show, based on a small two per cent royalty rate, they estimate paying the Government about $10 million per year (US$8 million), Yet Steven Joyce in January gave the company a solid gold hand-out, a research and development grant of up to $5 million per year. That is going to cut in half the effective royalties payable.

And the impact on the environment, on the ocean, on the seabed and on the fisheries will be significant. It is not theoretical, and is demonstrated by the documents on the EPA's website.

This proposal has so little benefit for New Zealand it smells of an old-fashioned rort. I look forward to what is uncovered in the hearings process.

If you would like to discuss this, or any other issues, please contact me.

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twitter.com/brendanhoran or Phone Brendan on 574 0253.