The cost of the Government’s oil and gas ban

The Herald reports:

Government officials have estimated that the cost to New Zealand of banning new offshore oil and gas exploration permits will be $7.9 billion between 2027 and 2050.

Money flushed down the drain.

PEPANZ point out:

Ending offshore oil and gas exploration could cost New Zealand taxpayers up to $23.5 billion and increase emissions at the same time, according to staggering new figures released by Government officials today.

The Petroleum Exploration and Production Association of New Zealand (PEPANZ) says it is time for a re-think on plans to end new offshore exploration.

“The Regulatory Impact Assessment (RIS) shows that ending new offshore permits is a disastrous policy for New Zealanders, likely to cost the Crown $7.9 billion in lost revenue and potentially up to $23.5 billion,” says PEPANZ CEO Cameron Madgwick.

“Importantly, this is only a part of the picture. Company profits could also reduce by billions which will cost jobs and investment into New Zealand, and the wider economic costs have not even been modelled.

“At the same time, it is considered more likely to increase greenhouse gas emissions than reduce them. It’s hard to think of a worse overall outcome.

“As well as the lost revenue it will mean higher energy prices for New Zealand homes and businesses, increasing the cost of living and destroying jobs.

This really takes the gold medal in terms of destructive policies. In summary the Government’s own officials say:

  • Up to $23 billion lost revenue for taxpayers
  • Fewer jobs
  • Increased greenhouse gas emissions
  • Higher energy prices

What a smart Government we have.

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