The Dunedin City Council is calling for a beefed-up Government effort to prepare for an oil and gas disaster, including more funds and equipment on stand-by to respond to any spill.
The call came in a council submission to the latest Block Offer 2015, which invited bids from oil and gas companies wanting to explore in New Zealand.
One of the blocks, totalling 141,757sq km, covered the Great South and Canterbury Basins, including off the coast of Dunedin.
New Zealand Petroleum and Minerals, a department within the Ministry of Business Innovation and Employment, was consulting affected councils and iwi about the latest offering.
Councillors considering the DCC's response earlier this week signed off a council submission calling for a new approach to any oil and gas disaster management, modelled on Civil Defence preparations for a natural disaster. That would ensure all groups - at national, regional and local levels - were prepared to respond in advance, rather than being co-ordinated only if a disaster occurred.
Necessary emergency response equipment should also be on stand-by within ''easy reach'' of any disaster site, the council's submission said.
Some oil and gas revenue should also be channelled into local councils, to pay for infrastructure improvements needed by the industry, and more into a national disaster recovery fund.
That was despite the Ministry of Transport's move to consider lifting OAG liability insurance from $25 million to about $300 million, which could still leave a ''considerable shortfall'' following any disaster.
BP estimated the Deepwater Horizon disaster in the Gulf of Mexico had cost the company more than $US42 billion, it said.
The calls came after questions were raised by councillors at this week's meeting about Shell's decision to locate some necessary emergency response equipment in Singapore.
The equipment was to be flown to a disaster zone anywhere in the Asia-Pacific on board a 747 aircraft, but could not land at Dunedin International Airport.
The aircraft would land at Christchurch airport, before the equipment was shipped south. Despite that, some councillors at Monday's meeting took exception to the ''negative'' tone of the council's submission, arguing it overlooked the potential economic benefits of the industry for Dunedin.
Cr Andrew Whiley - also the spokesman for lobby group ProGas Otago - questioned whether the submission was ''fair'' to both sides of the argument.''
What really frustrates me is Dunedin needs to be seen as open for business.''
We have to look at what's in the best interests of our community as a whole.''
Cr Mike Lord was also concerned, saying the submission contained ''very few positives'' while overlooking the economic benefits enjoyed by cities like New Plymouth.''
There's undoubtedly huge opportunities with this industry.''
Cr Lee Vandervis said the submission contained a ''particular series of assumptions and ideologies'', and did not represent the majority view, but doubted it would make any difference to oil and gas companies.
Others defended the submission, including Cr Jinty MacTavish, who said it expressed the uncertainty and lack of information faced by councils left to grapple with the issue.
Cr Andrew Noone said trying to settle on an agreed council position, when councillors were divided on the issue, was ''mission impossible''.''
We are split on this issue.''
The submission noted there was ''not enough detailed analysis'' of the potential economic benefits, or the cost to ratepayers arising from the need to upgrade roads and other infrastructure to accommodate the industry.
The risk to wildlife, including Otago Peninsula's yellow-eyed penguins and Hooker's sea lions, was also not adequately understood.
The Government should also consider establishing a ring-fenced fund to contribute to the cost of climate change adaptation by communities including Dunedin, the submission said.
