Oil & gas ban may cost $30 billion

Photoshopped image credit: Pixy

The government’s oil and gas ban was a poorly thought out piece of virtue signalling and nothing more. If they had been a responsible government, they would have planned the transition correctly, allowed a sufficient amount of time for submissions which would have been properly considered and the resulting changes would have been included in the legislation. Instead, it was rushed through in case somebody had a chance to see how bad a decision it was. And, boy, it was a bad decision. It now seems that this shameful piece of virtue signalling is going to cost the country over $30 billion. quote.

New figures show the Government’s decision to ban oil and gas exploration could cost the economy up to $30 billion by 2050.

An oil lobby groups says this means the policy needed to be reassessed, but the Government has questioned the validity of the figures.

The data comes from the New Zealand Institute of Economic Research (NZIER) and paints a grim picture of the Government’s decision.

As well as costing the economy $28 billion over the next 30 years, NZIER said the policy’s overall contribution to the global reductions of emissions was undetectable. end quote.

Having watched Jacinda bragging about this decision at Davos, it is clear that this was always about making her look good, and nothing more. However if NZIER’s predictions are correct, then her decision is criminally reckless. She should resign immediately because of it. quote.

“The New Zealand Government’s decision to ban new oil and gas exploration permits will see a series of strongly negative impacts ripple through the economy,” the NZIER report said.

The $28 billion figure was the midpoint estimate between $15 billion and $38 billion.

It is expected overseas investment would drop by between $4 billion and $7 billion by 2050, while exports could fall by up to $10 billion over the same period.

More than 3000 people would lose their jobs between now and 2050, the report said. end quote.

Not only that, but the move threatens our energy security and will almost certainly result in power outages which will affect industry, schools, hospitals and homes. Everyone is going to feel the downside of this decision. quote.

But Energy Minister Megan Woods said NZIER’s numbers were based on Ministry of Business, Innovation and Employment (MBIE) figures that she said didn’t “accurately model our policy”.

MBIE’s regulatory impact statement estimated the cost of the ban to be $8 billion between 2027 and 2050. end quote.

So the government knew that the move will cost the economy $8 billion… but they still went ahead? Wow. What a wonderfully responsible government. quote.

MBIE’s report only looked at the loss of revenue to the Crown ? NZIER’s report looks at the impact of the legislation on the New Zealand economy as a whole.

End quote.

So MBIE itself reckoned that the Crown would lose $8 billion as a result of this policy, but looked no further to consider the overall effects on the economy. But hey… these guys are socialists. There’s a revenue shortfall? No problem. Just increase taxes! quote.

National’s Energy and Resources spokesman Jonathan Young said the numbers show that New Zealand would be poorer as a result of the ban.

“The ban may read as a step toward a low-carbon economy but this report says its biggest achievement will be to wipe $28 billion off GDP.” 

A newspaper end quote.

So there you have it. The policy was poorly conceived, rushed through the house without proper consultation, will result in power outages and reduced energy security and will cost the economy something in the region of $30 billion. Tell me again why these people are in government?