THE ASSOCIATION · industry, from LPG production, distribution, wholesaling and retailing, to equipment supply, installation and servicing. The Association was established in 1975.

1L P G A s s o c i a t i o n o f N e w Z e a l a n d ( I n c )

T H E A S S O C I A T I O N

The LPG Association of New Zealand (Inc) represents companies from all sectors of the industry, from LPG production, distribution, wholesaling and retailing, to equipment supply, installation and servicing. The Association was established in 1975.

Membership represents all aspects of LPG fuel and appliance supply to the New Zealand market.

M i s s i o n S t a t e m e n t

The NZ LPG Association exists to serve the interests of its members. It promotes the safe and increased use of LPG. In doing so it works to secure a favourable environment for the production, marketing and distribution of LPG. In addition it serves as the principal voice of the LPG industry to Government and the community.

To achieve these goals the Association will:

■ Promote safety within the LPG industry and the community.

■ Anticipate and respond to the challenges and opportunities which confront our industry and members.

■ Achieve favourable governmental actions on LPG issues.

■ Provide forums for communication within the industry.

D i r e c t o r y

LPG Association of New Zealand (Inc)

Address: Level 12, Davis Langdon House, 49 Boulcott Street, Wellington PO Box 1776 Wellington 6140

Tel: 04-914 1765 ■ Fax: 04-914 1766 ■ Email: [email protected] ■ Web: www.lpga.org.nz

Executive Director and Secretary: Peter Gilbert

Auditors: BDO

Solicitors: Quigg Partners

2


P R E S I D E N T ’ S R E P O R T

It’s pleasing to report that the Industry has enjoyed a strong and steady year, buoyed by underlying growth, the warmer summer and a solid winter.

Sales have risen 18.4% since September 2010, from 140,033 tonnes to 165,857 tonnes. In the 12 months to August this year the increase has been 6.1%.

Unfortunately during the past year, automotive has declined steadily due to lower gasoline prices and hybrid vehicle substitution. Conversely other segments have shown real resilience with 9kg up 5.2%, 45kg up 6.8%, forklift up 2.8% and bulk sales up 8.6%.

The versatility of LPG for the consumer continues to be a strong reason for take-up and it is especially pleasing to see the growth in the 45kg segment where there are believed to be over 120,000 domestic customers in the market.

A key focus for the 2014/15 Executive Committee was to ensure proactive engagement with the newly formed WorkSafe organisation. Our goal was to ensure WorkSafe recognised our views on all relevant policy matters. Because of his profile and respected knowledge, Peter Gilbert achieved a seat on two WorkSafe working groups looking at workplace HSNO Regulations and also MHF Regulations. The Association, through Peter, will continue to work closely with WorkSafe.

The Association has also focused on a number of Council plan reviews, all of which – thanks to hard work by the Association – have achieved balanced and sensible outcomes for the industry. These included Rotorua, Horowhenua and Auckland Councils.

The Association has also worked hard to support and engage with the EPA, Energy Safety and the Plumbers, Gasfitters and Drainlayers Board (PGDB) for an online gas safety campaign which again was well supported, with increased public hits on the previous year as well as improved awareness of gas.

Further, Peter now also sits on the Stakeholder Liaison Group of the PGDB, which again will allow us to reinforce information about safety and address any industry issues that may come up from time to time.

With the first full year of Electricity and Gas Complaints Commission (EGCC) membership requirement for the industry, a constructive dialogue with the Association has been maintained and Peter has proactively briefed the EGCC staff about the LPG industry.

A key part of any organisation is ensuring that its members are informed and updated with industry changes locally as well as internationally. Through the year we have maintained regular

Tony Smith

4 R e p o r t f r o m t h e E x e c u t i v e 2 015

updates via the ‘Gasline’ e-zine and further developed ‘The Beauty of Gas’ website for the consumer. The forthcoming development of the LPGA and GANZ websites through an industry-specific portal will only add value to the effectiveness of our communications.

The LPG Association also achieved international recognition in the year with Peter being invited to speak on ‘regulations in New Zealand’ to the international LPG conference in Dubai in February this year, and also in June to the European LPG Summit in Berlin.

In the 2015/16 year we have a very comprehensive set of focus areas and deliverables of which a large portion relate to compliance, regulation input and communication with the wider LPG industry and members.

A full set of the objectives can be found in the members section of the Association website, but the Association has identified the following objectives as top priorities for the 2015/2016 year.

Workplace HSNO Regulations phase 1. Work with WorkSafe NZ and MBIE in the production of the new workplace HSNO Regulations.

Major Hazard facility Regulations. Work with MBIE and WorkSafe NZ to achieve sensible and workable trigger limits and Regulations for LPG facilities.

Non-workplace HSNO Regulations. Work with EPA to produce the new non workplace HSNO regulations and updates to other EPA controlled HSNO regulations such as labelling.

WorkSafe NZ. Establish contact with officials to identify any potential or emerging issues which may impact on industry operations.

As I come to the end of my time as President and reflect on the past two years, I am incredibly pleased with how the Association has grown in presence and direction and has expanded its recognition within the industry.

There are a large number of people involved in making the LPGA effective in its role. I would especially like to thank Peter Gilbert for his 25 years of dedication and focus which have facilitated many successes and which have underpinned an organisation that is better positioned with all key industry and regulatory groups.

I would also like to recognise the members who assist Peter, via the Technical and HSE Committees, and my fellow Executive team colleagues.

Tony Smith president


E X E C U T I V E D I R E C T O R ’ S R E P O R T

R e g u l a t o r y c h a l l e n g e s k e e p A s s o c i a t i o n b u s y t h i s y e a r

Attend meetings, have coffees and write submissions. And then do more of the same as the Association sought to work through the myriad regulatory changes that were proposed, address alterations and amendments to Standards, maintain and strengthen its relationships with key stakeholders, and provide input to, and get best outcomes from, the various Council plans that all touched on the use of LPG and that provided some contentious issues that had to be addressed.

The Executive set 13 high priority objectives for the year, along with nine other lesser-priority outcomes to be achieved. All were either successfully completed or are continuing as works in progress that I am pursuing.

Most of those priorities dealt with relationship management designed to provide input to the regulatory process in some form or other to ensure LPGA members’ best interests were protected. In most cases we were successful.

And much of the work involved direct interaction with WorkSafe New Zealand in four specific areas, all of which were time-consuming and somewhat complex.

And while we have experienced some unexpected challenges during the year when dealing with WorkSafe, we believe the overall relationship between our two organisations is working effectively, which bodes well for the future.

While that was the backbone of the Association’s work during the year, a highlight was the success of the Forum, which was very well attended and received a glowing report card from the many delegates who provided feedback.

This event has become a real industry centrepiece and it seems to be highly valued by the increasing number of members who attend each year.

A second very positive result came from the ‘Gas Safety’ campaign that we co-produced with GANZ, WorkSafe, EPA and the PG&D Board. The focus of the campaign was to draw as much consumer attention as possible to the main gas safety messages, and this year a very impressive 1.1 million people saw the safety messages at least three times. Planning will start soon for the 2016 campaign.

Peter Gilbert


And on the subject of social media, members can expect a revamp of the Association’s website and that of GANZ, too, as we seek to consolidate gas industry information into a new site that’s dedicated to this purpose. We will continue to use ‘The Beauty of Gas’ website for consumer-facing information.

It wasn’t all plain sailing during the year. This report touches on several key issues that were problematic; of particular note was the work we had to do with WorkSafe on the subject of major hazard facility regulations.

For some reason, WorkSafe proposed regulations for the lower tier sites that differed markedly from what we had expected, and were far more stringent than anticipated. This created a significant concern for members and involved the Association in some pointed conversations with WorkSafe.

However, as outlined in this report, we achieved the result we wanted, and this was in addition to obtaining an increase to the trigger limit for lower tier sites from 20 tonnes of LPG to 50 tonnes to align with the UK COMAH Regulations – a most satisfactory outcome!

Once again, I would like to thank the members of the Technical Committee and the HSE Committee who provide so much valuable support and input, and LPGA President, Tony Smith, with whom it’s been a pleasure working with this year.

Peter Gilbert executive director

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2015 LPGA ANNUAL REPORT

G O V E R N M E N T R E L A T I O N S

E G C C s c h e m e w o r k i n g w e l l

It is now a year since retailers of LPG cylinders greater than 15kg were included in the Electricity and Gas Complaints scheme. It is correct to say this development was not universally welcomed by all Association members. However, the Association and in particular the Executive Director, made it a priority to maintain a close relationship with EGCC staff to provide assistance and advice to ensure the scheme worked as well as possible.

Complaints Commissioner Judy Jones welcomed our approach and the Executive Director has attended a number of briefing sessions. This has ensured that staff handling LPG complaints and queries have some basic knowledge of how the industry operates.

The majority of issues about which LPG consumers have contacted EGCC are around delivery, billing and complaint handling. Judy Jones explained that most complaints are

resolved directly with the company, which is exactly what they want.

C h r i s t m a s d r i n k s p r o v e p o p u l a r

The Association continued its recently-started tradition of hosting Christmas drinks for key stakeholders. This is a very cost effective relationship building exercise that is well received by attendees and provides an informal forum for some very interesting discussion on sector issues!

We have been successful in expanding the guest list to include both core stakeholders and those with a more peripheral but still useful involvement with the industry. This is in keeping with the Association’s goal of raising our profile and creating links with a broader spectrum of possible influencers. We will continue the practice as long as we continue to get value from it.

Judy Jones


D u c t e d g a s h e a t e r s i n d u c t e d i n t o E N E R G Y S TA R p r o g r a m m e

The Executive Director maintained regular contact with EECA staff over the year to ensure the communications channels remained open, and to share relevant information.

One key development in March this year was that the ENERGY STAR programme adopted specifications for ducted gas heaters (specifications for gas heaters were adopted in 2013). ENERGY STAR labels mean consumers can immediately recognise which models are most efficient.

The trans-Tasman equipment energy efficiency committee (E3), of which EECA is a member, has been looking at ways to improve the efficiency of gas appliances and considering issues relating to labelling. A research and recommendations report was given to Gas Appliance Manufacturers Association of Australia (GAMAA), Jemena and Gas Energy Australia (GEA) in September. Recommendations included a suggestion for industry to run a physical check-testing programme on gas space heaters; a revision of the labelling calculations so that similar appliances were comparable; and a declaration of electricity consumption included in the running costs.

EECA’s operations and influence are important for gas appliances and the Association will continue its close cooperation to ensure they continue to get a fair deal.

L P G A p a r t o f P G D B ’s n e w s t a k e h o l d e r l i a i s o n g r o u p

The Executive Director has continued his liaison with the PGDB as the Association believes that cooperation and assistance across the gas industry is beneficial to all parties, including Association members. The Executive Director met with the new PGDB Chief Executive, Martin Sawyers, who is focused on delivering a ‘modern’ approach to regulation that rewards those who comply with obligations, and provides a fair, risk-based disciplinary system. Mr Sawyers also confirmed his intention to interact with industry stakeholders, such as the LPG and Gas Associations, as much as possible. As evidence of this, the PGDB have recently formed a stakeholder liaison group and the Board sees the group as a means of ensuring wider industry input into the Board’s decision-making. To ensure the LPG/Gas industry view was around this table the Association Executive Director applied for membership, which was accepted.

ENERGY STAR labels mean consumers

can immediately recognise which

models are most efficient.

Martin Sawyers

1 0 R e p o r t f r o m t h e E x e c u t i v e 2 015

G I C u p d a t e s ‘ N Z G a s S t o r y ’

Meetings between the Executive Director and the CE of the GIC, Steve Bielby, continued through the year. These meetings serve to share information which may have relevance to the two organisations and to ensure there are no surprise issues. The GIC have updated the ‘NZ Gas Story’ and will be running roadshows to reinforce broader awareness of the New Zealand gas industry among people whose work touches on gas.

The GIC is a key stakeholder in the wider gas industry and it is important to maintain a close working relationship.

The New Zealand Gas Story.

1 1L P G A s s o c i a t i o n o f N e w Z e a l a n d ( I n c )

C r o s s i n g t h e p o l i t i c a l d i v i d e

The Executive Director found a ready audience when the LPGA met with Labour’s energy spokesperson, Stuart Nash. Mr Nash explained his interest in gas extended to his installing it in the home he is renovating in Napier. Further to his personal interest in gas as a household energy source, Mr Nash understood the value and importance of gas, both as a national strategic energy asset and as a compelling lifestyle option for Kiwi consumers. It is pleasing to see an energy spokesperson so conversant with the industry and its issues. The Executive Director met with a similarly warm response when briefing the Private Secretary for Energy in the office of Energy Minister, Simon Bridges. Having previously met with and briefed the Minister, the Association was keen to build relationships with his staff with the goal of facilitating positive information sharing and useful access. The Association doesn’t often have need to raise concerns with politicians, but having and maintaining relationships with the relevant contacts is imperative.

But having and maintaining

relationships with the relevant

contacts is imperative.

Members of Parliament in the debating chamber.

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R E G U L A T I O N S

H e a l t h a n d S a f e t y i n E m p l o y m e n t B i l l

The Executive Director, along with GANZ Chair, Stuart Dickson, attended the hearing of the Transport and Industrial Relations Select Committee to talk to the main points from our joint submission. Both the LPG and the Gas Association support the introduction of the Health and Safety Reform Bill as a total reform of regulatory coverage for workplace safety.

The Health and Safety Reform Bill seeks to replace the Health and Safety in Employment Act 1992 and the Machinery Act 1950. As part of the joint submission, GANZ and the LPGA recommended amendments for 13 sections of the Act. The submission was aligned very closely with that of the Electricity Networks Association, and the chief goal in presenting to the Select Committee was to stress that it is often impossible in the gas industry to

totally eradicate risk. Totally eliminating risk is unrealistic and inconsistent with the over-arching principles of risk management. We recommended that references to ‘without risk’ should be replaced with references to ‘minimising risk’ so far as reasonably practicable. The committee listened and took on board our concerns which also included:

■ Refining the use of the terms ‘risk’ and ‘hazard’.

■ The definition of ‘workplace’ when people only work at the place periodically, such as gas regulating stations.

■ Requirement for Inspectors to follow reasonable safety requirements of the owner of a site.

■ The requirement to not touch a site following an incident and its impracticality in some circumstances.

The Bill was passed by Parliament and will come into effect on 4 April 2016.

Totally eliminating risk is

unrealistic and inconsistent with

the over-arching principles of risk

management.


B u s y a g e n d a w i t h W o r k S a f e N Z

As expected it has been a very busy year engaging with WorkSafe NZ on a number of topics.

While there have been unexpected challenges, we believe the relationship between the Association and WorkSafe NZ is working well. Following, are some of the key projects about which the Association has engaged with WorkSafe NZ.

M a j o r H a z a r d F a c i l i t y R e g u l a t i o n s

One area of temporary, but fairly significant, difference of opinion were the requirements for lower tier sites in the draft Major Hazard Facility Regulations released in May this year. Somehow the requirements for the lower tier sites had increased dramatically from those signalled in the regulation discussion document put out a year previously. They were also far more stringent than either the Australian or UK requirements, on which the NZ regulations were supposed to be based.

This departure from what had been signalled previously caused considerable concern for members; concerns that were fully covered in the LPGA submission and that were highlighted by the Executive Director in some pointed discussions. Following these discussions, WorkSafe NZ has since confirmed that the requirements for the lower tier sites will be in line with the UK requirements, which the industry considers reasonable. One further potential issue is how the fees will be set for these lower tier sites, given there are none in the Australian system.

They were also far more stringent

than either the Australian or UK

requirements.

Liquigas Auckland depot.


E n f o r c e m e n t

Another area of concern was an enforcement notice issued to a member company regarding the restraint of 45kg cylinders in storage. It was the opinion of a contracted WorkSafe enforcement officer that all 45kg LPG cylinders stored (not connected for use) on sites should be restrained in

some way. This is not required under HSNO and there is no practical way to achieve this for constantly varying numbers of stored cylinders. Therefore a meeting with WorkSafe NZ was requested urgently and, as a result, WorkSafe agreed with the industry position and the enforcement notice was withdrawn. The particularly concerning aspect to this situation is the fact that the enforcement officer based their interpretation of requirements on the over-

arching HSE requirements, rather than HSNO Regulations. Given the industry is designed to HSNO Regulations, any departure from them on the basis that they don’t cover the issue being raised is of great concern and the Association will remain vigilant for any future examples.

W o r k S a f e N Z H S N O R e g u l a t i o n s

The development of these Regulations, which will replace the current HSNO Regulations for places of work, is continuing. The Executive Director has attended both formal and informal meetings with MBIE who are producing the new Regulations. The timetable for the final Regulations has

now slipped to having the draft out in November this year with implementation in July 2016. This is no bad thing because this is a very complex piece of regulation with the risk of unintended consequences from manipulating the current multi-document Regulations into a single source, ever present.

This work stream is, and will remain, a high priority for the Association until the work is completed.

MBIE have confirmed that having AS/NZS 1596 cited as a means of compliance will not be possible during this phase of development, but the officials and the Minister have said this will be looked at during the promised review of the HSNO regime, which begins as soon as the WorkSafe NZ HSNO Regulations are enacted.

P o d u c t i v e a c h i e v e m e n t w i t h E n e r g y S a f e t y

Although we have not had any specific issues which required interaction with the Energy Safety team, we have maintained regular meetings to ensure a continuation of the no surprises approach in mattes of gas safety.

This is not required under

HSNO and there is no practical way

to achieve this.

This is a very complex piece of

regulation with the risk of unintended

consequences.


The close cooperation this year included a significant increase to the WorkSafe NZ contribution to the annual gas safety campaign, which produced some remarkable results (see later in report).

We also cooperate to provide a NZ perspective on a number of joint Australia and New Zealand Standards which are vital to the gas industry in NZ.

So another very good year of quiet but productive achievement with the Energy Safety team.

D i s t r i c t p l a n s p r o v e c o n t e n t i o u s

It has been a busy and contentious year for Association involvement in local authority district plans. Ashburton, Auckland and Christchurch all released plans during the past 12 months. The Ashburton plan was a copy of the current Christchurch plan and was therefore quite reasonable.

The Auckland plan was more restrictive than Christchurch’s, particularly for residential areas. The original draft plan also required a statement from a registered engineer that the hazardous substance sites had been designed and laid out such that they would prevent adverse impacts. This was obviously an impossible requirement and thankfully the Council Officers agreed to a change before mediation. However our request for an increase to the permitted trigger limit from 100kg to 200kg had to be taken to the hearings panel. As this process is set to take until 2016 we won’t know the panel decision on the 200kg limit until all decisions are released sometime next year.

The big disappointment came from the proposed Christchurch plan, which morphed from being the most reasonable in terms of trigger limits for LPG into a copy of the proposed Auckland plan. The trigger limits for LPG storage in residential and industrial zones had both been reduced.

The Executive Director attended the plan mediation session and the hearings panel is due to hear evidence mid-October.

One piece of good news from this process is that CERA, acting as The Crown, is proposing that all references to issues already covered by the HSNO Regulations be removed from the plan. This was obviously not discussed much during the mediation session, but it will be centre stage during the hearings process. The Association will inform members of progress with this potentially game-changing submission.

The Association will also continue to monitor notified plan changes to ensure we continue the quest for sensible LPG trigger limits in district plans.

We won’t know the panel decision on

the 200kg limit until all decisions are

released sometime next year.


C O M M U N I C A T I O N S

C u s t o m e r s p r o m o t e G a s N Z

Activities this year around ‘The Beauty of Gas’ campaign have focused on updating the website. We undertook a consumer survey which indicated some improvements could be made, primarily

in the content and layout rather than overall look, which was received very well. As a result of this, the content has been amended and we will be looking to update the website in the next few weeks.

We have also commissioned some consumer videos to go up on key pages of the website, with real customers in their own homes explaining why they love

gas heating, cooking and hot water, and what they have found the benefits to be.

We envisage these elements will make the site more interesting and easy to navigate.

We also used Facebook advertising, which gained almost 2,000 clicks to the website over two months. Statistics indicated a large proportion of these came from women, aged 25-34.

We envisage these elements will

make the site more interesting and

easy to navigate.


G a s s a f e t y m e s s a g e w e l l r e c e i v e d

The Association in conjunction with GANZ, WorkSafe NZ (Energy Safety), EPA and the PGDB, again ran a consumer gas safety campaign to raise awareness of the main safety messages.

The ‘Gas Safety’ website was established for the first joint campaign in 2013 and digital media was used to drive website visits. For 2014 we added the three short safety videos to the site and again used digital media combined with a competition to drive website visits.

However for 2015 the focus was changed from website visits to getting the safety messages in front of as many people as possible using both digital and social media. WorkSafe NZ significantly increased their available contribution for this campaign, which greatly expanded the potential reach.

The campaign ran from July 5 – August 25 and focused on what to do when you smell gas, the importance of using a licenced gasfitter, cabinet heater safety and caravan safety tips. The campaign included three short videos and three banner ads. The videos featured on YouTube and Facebook, and the banner ads showed on Facebook, NZ Herald Online, Stuff, and a network which allows the purchase of advertisements on websites that are seen by ‘New Zealand eyeballs.’

This all translated to a very impressive 1.1 million people seeing the safety message at least three times. Planning will start soon for the 2016 campaign.

WorkSafe NZ significantly increased

their available contribution for this

campaign.


W e b s i t e u p g r a d e s p l a n n e d

The Association Executive Committee and the GANZ Board have agreed to create a single website landing page for all LPG/gas related issues. This page will then link through to the other sites. As part of this, both the LPGA and GANZ websites are being updated and will be member-focused. All consumer content will feature in ‘The Beauty of Gas’ site. The ‘Gas Safety’ website will also be linked on the new landing page. The look and feel of all websites will be consistent and will start with the consumer-facing information website first up.

This is proving to be a significant task and has not kept to schedule but should be completed in the next three months. Given the focus on the online world, getting the website interface ‘right’ is important both for potential gas consumers and Association members, so we don’t want to rush this merge process.

L P G A b r o a d e n s i t s i n t e r n a t i o n a l c o n n e c t i o n s

It has been an unusually active year in terms of making international connections. The Executive Director was invited to present at the Middle Eastern LPG Summit in Dubai and the AEGPL (European LPG Association) Congress in Berlin.

The Dubai invitation came out of the blue from the summit organisers who wanted a presentation on New Zealand’s regulatory framework for LPG safety. The summit attracted delegates from an eclectic mix of countries from the Middle East to India and Malaysia. The theme for the Summit was ensuring the sustainable growth of LPG in the Middle East through a focus on safety and awareness.

The Executive Director outlined how the New Zealand LPG industry handles safety. He focused specifically on the industry’s regulatory system, technology

standards and safety outcomes. He also showcased what the industry here does well, and which areas could be improved. Some of the Middle Eastern countries don’t have their regulatory structure sorted at all, and a lot of them haven’t been using LPG in their own countries for very long.

The presentation focused on how the structure of LPG regulation was handled under HSNO, Gas Safety and Road transport. The presentation went down very well and as a consequence he was asked to present the same material at the AEGPL Congress in Berlin in May this year.

LPGA Executive Director Peter Gilbert speaking at the 2015 AEGPL Congress

in Berlin.


The AEGPL Congress was certainly a step up in terms of delegates, with 700 compared with 200 for the Dubai Summit. This was a significant event with over 100 trade displays and two days of presentations. The Executive Director presented essentially the same material although it was now titled NZ LPG Regulation: The good and the bad.

The presentation was again well received and a number of questions following the presentation were around how the LPG infrastructure stood up to the Christchurch earthquakes.

A number of good contacts were established, all of whom should prove useful if an international perspective would assist in our dealings with NZ Regulators.

G a s I n d u s t r y F o r u m p r o v e s p o p u l a r

The 2014 NZ Gas Industry Forum, held last November in Queenstown, was excellent and a real success. The event generated very positive feedback and attendance was well up on the previous year. In addition, the feeling amongst attendees about the current state of the gas industry was also very positive.

Results from the survey of attendees shows the Forum was rated ‘excellent’ by nearly 50% of participants, with 46% rating it ‘good’. The quality of the presentations received high marks and nearly all attendees indicated they intended to download one or more presentations after the event. The networking events featured well, rating ‘excellent’ by 64% of participants.

Over 90% of attendees said they’ll return for the 2015 event.

The trade exhibition at the AEGPL Congress in Berlin.

The 2014 NZ Gas Industry Forum in Queenstown.


O P E R A T I O N S

C o n t a m i n a n t s i n L P G a p p l i a n c e s

This issue has once again raised its head, albeit at a low level, and has affected consumers through failed components in continuous flow water heaters. The Association was made aware of this issue at the February Executive committee meeting. The Executive agreed that the first priority was to establish what contaminant had caused the failure of the appliance components. It was agreed that the Association would pay for testing, by an independent laboratory, of any samples that could be provided from affected appliances. It was also agreed that information regarding the affected installations was necessary to provide a complete picture of the installation. This included the date of installation and the make of pigtails. The laboratory has to date received just six samples supplied from affected appliance components.

All the samples of contaminant were identified as phthalates, which are ‘plasticisers’ used in rubber components to provide flexibility. It has been established in the past that phthalates are present in rubber pigtails.

The Association has agreed to cover the cost of testing any future samples from failed appliance components, and also the cost of replacing the pigtails

and regulators on the next five affected sites. This is to enable a more exhaustive matching of phthalate residues.

The Association Executive is determined to find the root cause of the current issues and to establish a solution for the future.

P l a c e m e n t o f h e a t p u m p c o n d e n s e r u n i t s c a u s e s c o n c e r n

An issue which has been growing for some time is the problem of heat pump installers positioning the condenser units within the hazardous area of LPG cylinders. This can result in customers being caught between the LPG supplier, who can no longer supply because of the non-compliance, and the heat pump installer who needs to remedy the situation. Last year the Association wrote to all heat pump suppliers and contacted the Electrical Workers Registration Board (EWRB).

The heat pump suppliers supported our aim to stop the condenser units being placed in the hazardous area zones and a number confirmed it was included in their installation instructions and in the training for their installers.

The Association Executive is

determined to find the root cause of

the current issues.


The EWRB agreed to remind all electricians of the requirements which have been included in AS/NZ 3000 as amendment 2, in 2013. This was a supportive response from these stakeholders to the initiative by the Association to reduce problems for LPG customers.

C o d e s o f p r a c t i c e u p d a t e d

The LPGA Technical Committee has updated two significant codes of practice – the Twin Pack 45kg cylinder code and the Multi 45kg cylinder code.

The update includes new information and removes extracts from the Gas Installation Standards. We replaced the extracts by referring to the correct clauses in AS/NZS 5601.1 to prevent conflicting information being given and to stop the two documents getting out of step.


I n d u s t r y t r a i n i n g p r o g r e s s i n g

The Gas Industry Targeted Review of Qualifications (TRoQ) for gas distribution, metering and instrumentation, commenced in September 2013. This review encompasses four working groups which are overseen by a Governance Group (GG).

Stage 1 of the gas industry review was completed in March 2014 with the submission of six proposed qualifications to NZQA along with the needs analysis showing a need for the proposed qualifications. Based on this submission, NZQA has now approved the development of four out of six qualifications; two qualifications were declined and will be reconsidered during the second stage.

The second stage of the review is to undertake detailed development of the approved qualifications, reconsider the qualifications that were declined and review the unit standards currently listed with NZQA.

MITO is coordinating this review process and a new industry group has been formed to work through the process of reviewing the present unit standards to align them to the new qualifications.

The Executive Director is Chair of the overall Governance Group.

The second stage of the review is to

undertake detailed development of

the approved qualifications.

2 3

S T A N D A R D S

N e w s t a t u t o r y b o a r d t o b e e s t a b l i s h e d

As you will know, the Standards production, maintenance and marketing operations of Standards NZ are being moved into the Ministry of Business Innovation and Employment (MBIE).

A new, independent statutory board to approve New Zealand Standards and membership of Standards development committees will be established with the passing of the new Standards and Accreditation Bill. The Bill, which is awaiting its third reading in parliament, stemmed from a 2012 review of the current regime, which found the Standards Council was not financially sustainable in the medium to long term.

Though this will replace the current structure of the Standards Council, standards will continue to be developed by technical expert committee members. The Bill will also establish an independent statutory office which will sit within MBIE and be responsible for developing New Zealand Standards, and for New Zealand’s international membership and participation in the International Organisation for Standardisation (ISO) and the International Electrotechnical Commission (IEC). The new arrangements for Standards will start within six months of the Bill becoming law.

As you will be aware, this move into MBIE was not supported in the Association’s submission on the proposed options, however it is going to happen and the Executive Director has met with the MBIE people involved to ensure the views and needs of the industry are considered.

A G – 0 0 1 J o i n t G a s A p p l i a n c e C o m m i t t e e

The jointing of the Australian gas appliance suite of design Standards remains high on the agenda for the NZ gas appliance industry. The Executive Director is a member of the AG-001 committee, which is the head committee overseeing all the appliance specific Standards. The draft Standards for BBQs, domestic cookers, water heaters and gas space heaters have been out for public comment and are now being considered by the Committee. It is also recognised that the part which covers the essential safety features of all appliances now needs a review, which will commence in the new year.

The Bill will also establish an

independent statutory office which

will sit within MBIE.

The draft Standards for BBQs,

domestic cookers, water heaters and

gas space heaters have been out for

public comment.


This process has taken a lot of time and effort from the NZ representatives that attend the AG-001 meetings and the sub-committee meetings considering the specific appliances standards. But given the importance of having joint Standards which can be used in the certification process by the Australian test laboratories as well as producing updated Standards in a joint committee setting, this is well worth the effort.

A G – 0 0 6 G a s I n s t a l l a t i o n C o m m i t t e e

This committee continues to meet to sort through a range of issues included in proposed amendments to part 1 and part 2. While these amendments were technical and are pretty straightforward they did throw up other issues for the committee to consider.

The next meeting is planned for October this year and is to be held at the MBIE offices in Wellington. This will be the first time MBIE have hosted a Standards committee and it is unlikely to be the last given the move to have Standards developed within MBIE.

The Executive Director is a member of this committee.

A S / N Z S 15 9 6 S t o r a g e a n d H a n d l i n g o f L P G

A new project has just been approved for this Standard to add a section on: Managing odour in the LP Gas supply chain. This is a very pertinent issue for NZ which already has NZS 5263 as its

Standard, so integrating the NZ requirements into the joint Standard is very important.

There has also been a list of issues identified for amendment which will be considered by the committee.

The Association has identified the citing of AS/NZS 1596 as a means of compliance in the HSNO Regulations as a priority. This is not only because the Standard is a more complete technical document than the current Regulations, but more importantly because this level of technical detail should not be in Regulation. It belongs in a Standard which can develop outside the regulatory/government framework, making it more responsive to Industry developments as well as being the product of consultation with Australian Industry and Regulators and NZ Industry and Regulators.

The Minister for Workplace Relations and Safety, Hon Michael Woodhouse, stated in a recent Gasline article that “officials will take a more considered review of any transferred provisions, within two years of commencement, to ensure they are fit for purpose and to simplify

Hon Michael Woodhouse


them for duty holders as much as we can. This more detailed review may investigate whether the standard for the storage and handling of liquefied petroleum gas (AS/NZS 1596) could be used as an alternative to compliance with the current regulatory requirements that relate to low pressure liquefiable gases”.

So our wish ‘may’ be granted at some point following the introduction of the WorkSafe NZ HSNO regulations which are due in early 2016.

S a l e s f i g u r e s

Below are the 2014 calendar year LPG sales figures. In comparison to the 2013 figures, automotive and 9kg sales declined by 4% and 3% respectively, while 45kg was up 11.5%, forklift 4.3% and bulk 1.3%. The total sales of 159,454 tonnes were up by 4.7% on the previous year.

What was also pleasing were the 45kg customer numbers, which increased by 8% for residential to 105,211 and 12.7% for commercial to 12,692.

The Association has identified the

citing of AS/NZS 1596 as a means of

compliance in the HSNO Regulations

as a priority.

Auto

Forklift

9kg

Bulk

45kg

21,360

50,524

67,513

12,652

7,405

2 6


E X E C U T I V E C O M M I T T E E R E P R E S E N T A T I O N

E x e c u t i v e e l e c t e d a t 2 0 14 a n n u a l g e n e r a l m e e t i n g

Shell NZ Ms V Jull Producer

Liquigas Mr A de Geest Distributor

OnGas Mr D Wilson Wholesaler

Contact Energy Mr A Sibley Wholesaler

ELGAS Mr A Smith Wholesaler

Nova Energy Mr T Barstead Wholesaler

Genesis Energy Mr P Kimber Wholesaler

Vapor Gas Equipment Mr N Foster Equipment Supplier

Aber Mr G Brown Appliance Supplier

Alexander Petroleum Mr I Reid Transporter

P r e s i d e n t

Mr Tony Smith continued as President for his two year term.

V i c e P r e s i d e n t

Mr Andy Sibley was elected Vice President at the December 2014 Executive meeting.


O T H E R C O M M I T T E E S

A s s o c i a t i o n Te c h n i c a l C o m m i t t e e

Mr K Daly, Chairperson Mr N Beeslar

Mr K Bailey Mr D Paton

Mr R Walsh Mr R Brodrick

Mr P Gilbert Mr D Whitfield

Mr A Mountfort Mr R Brown

A s s o c i a t i o n H S E C o m m i t t e e

Mr D Falconer, Chairperson

Mr D Whitfield

Mr A Mountfort

Mr D Reid

Ms R Morris

W e l l i n g t o n R e g i o n H a z a r d o u s S u b s t a n c e Te c h n i c a l L i a i s o n C o m m i t t e e

The Executive Director represents the Association.

N Z S t a n d a r d s G a s S e c t o r S t a n d a r d s B o a r d

The Executive Director chairs the Committee and represents the Association.


G a s C o m m u n i t y G r o u p

The Executive Director chairs the Committee and represents the Association.

P l u m b e r s , G a s f i t t e r s a n d D r a i n l a y e r s B o a r d S e c t o r A d v i s o r y G r o u p

This is a new group formed by the Board to enable consultation across the Industry.


W o r k S a f e N Z H S N O R e g u l a t i o n w o r k i n g g r o u p


W o r k S a f e N Z M a j o r H a z a r d F a c i l i t y R e g u l a t i o n s w o r k i n g g r o u p


A S / N Z S 15 9 6 L P G S t o r a g e a n d H a n d l i n g

The Executive Director and Mr R Smith represent the Association.

A S / N Z S 5 6 0 1 G a s I n s t a l l a t i o n S t a n d a r d



A G – 0 0 1 A u s t r a l i a n G a s A p p l i a n c e S t a n d a r d s

This is the head committee looking after the development of the new suite of gas Standards which NZ has agreed to make joint.

The Standards currently being updated are:

AS 5263.1.3 (AS 4553)–Domestic Gas Space Heating Appliances

AS 5263.1.2 (AS 4552)–Gas Fired Water Heaters

AS 5263.1.1 (AS 4551)–Domestic Gas Cooking Appliances

AS 5263.1.7 (AS 4557)–Domestic Gas Barbecues

The NZ Gas Industry is represented by the Executive Director, Mr J Swarbrick, Mr R Brodrick and Mr P McArthur.


M E M B E R S H I P O F T H E A S S O C I A T I O N

Heatzone Ltd

King Country Energy

Lama Gas Services

North Harbour Hire Ltd

Oneroa BP

Porirua Cylinder Testing

Richdale Fire and Security

River City Gas

Toa Gas Cook Islands

Z Energy

E q u i p m e n t S u p p l i e r

Amalgamated Hardware

Gameco NZ Ltd

Hydroflow Distributors

SecoGas

Vapor Gas Equipment Ltd

A p p l i a n c e S u p p l i e r s

Aber Holdings Ltd

Delonghi NZ

Rinnai NZ Ltd

P r o d u c e r

Shell New Zealand

D i s t r i b u t o r

Liquigas Ltd

W h o l e s a l e r

Elgas

OnGas

Contact Energy

Nova Energy

Genesis Energy

R e t a i l e r

Arthur Cates Ltd

Auto Gas Centre Ltd

BP Oil NZ Ltd

Eastern Bay Cylinders

Eastern Gas and Hire

ECO Central

Far North Gas

Gasnet Ltd

GasPro Ltd


I n s t a l l e r

Alectra Services

BHS Contractors Ltd

Gas Engineering Services

Gasco & Pipeline

Gasco Queenstown

Gaswork Kaitaia

Gilbarco NZ Ltd

Kevin J Morgan Plumbing

Liquid Gas Services Ltd

McIvor Plumbing and Gasfitters

Tr a n s p o r t e r

Alexander Petroleum Services

Hooker Pacific Ltd

Lowes Industries

Oceangas Services Ltd

Uhlenberg Haulage Ltd

A s s o c i a t e M e m b e r

Anchor & Ellis Contractors Ltd

Approved HSNO Test Certification

Bowers Plumbing & Gasfitting

Custom Controls Ltd

EMS Ltd

Fiji Gas

Galpro Stylex

Hale & Twomey Ltd

Hamilton Plumbing Co Ltd

Heatrite

Gas Association of NZ

Gas Energy Australia

LP Gas Association (UK)

LPG & Safety Consultants

Masters Plumbers Gasfitters and Drainlayers NZ Inc

National Propane Gas Association

Nationwide Fire Protection

Penniall & Jordan Co Ltd

SGS NZ Ltd

THE ASSOCIATION · industry, from LPG production, distribution, wholesaling and retailing, to equipment supply, installation and servicing. The Association was established in 1975.

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