Rules will be in place before oil drilling: PM

Strong environmental standards will be in place before any oil drilling takes place in the Raukumara Basin, Prime Minister John Key says.

He made it clear yesterday that the Government wasn't going to change its mind about the permit it has granted Brazilian company Petrobras to explore 12,330sq km of the basin off East Cape.

Mr Key said mineral reserves, including oil and gas, had been nationalised for the benefit of all New Zealanders.

"In the case of the Raukumara Basin we will certainly be taking it from there ... Petrobras will be, assuming it wants to move from its prospecting licences to full drilling," he said.

Mr Key said the Government was working on new environmental protection regulations.

"By the time they ever start wanting to drill holes in that part of New Zealand, there will be strong environmental standards in place," he said.

The new regulations would not be specific to the Raukumara Basin and would cover any deep-sea drilling.

Energy Minister Gerry Brownlee also gave assurances that the Government was acutely aware of the need to manage potential environmental impacts of oil drilling.

"We were acting on this issue prior to the catastrophic oil spill in the Gulf of Mexico," he said.

Green Party energy spokesman Kennedy Graham accused the Government of running roughshod over East Coast residents. "The minister knows what's best for the local people and instead of asking them, he's telling them."

- NZPA