Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Greens to whack oil companies to fund clean-tech investments

Greens to whack oil companies in bid to boost clean-tech investing

May 13 (BusinessDesk) - The opposition Green Party has fleshed out a proposal to set up a government-backed investment bank backing ‘green capital’ projects, which it would fund by hiking tax rates on oil companies by more than half.

Co-leader Russel Norman today announced his party’s green investment bank policy, which would look to drive greater investment in the clean-tech sector, at a cost of about $120 million in its first three years of operation. The bank would initially invest the bulk of its capital in priority areas such as carbon reduction and energy and resource efficiency involving firms at a late stage of development.

The Greens, likely to be a junior partner if Labour wins this year’s elections, anticipates up to $100 million could be invested within the bank’s first year of operation, with investments rising to as much as $1 billion by 2020.

The party would raise the overall tax take on oil companies to 70 percent from 46 percent, something it says will bring New Zealand in line with the international average. The bank would be expected to cover operational costs from investment returns. The bank will have to be financially self-sufficient, achieving a target rate of return at or above the government’s bond rate, the paper said.

“Without the right policies, price signals and supportive partner institutions in place, private capital has continued to fund carbon and resource intense investments in New Zealand while starving the emerging clean-tech sector of the capital it needs to take off,” the policy document said. “This is not a smart of sustainable way to run our economy for the long-term.”

The announcement comes ahead of the National-led administration’s sixth budget on Thursday, which will affirm the trajectory towards fiscal surpluses as the nation’s economy continues to accelerate.

Norman floated the proposal in an interview with TV3’s The Nation programme in March, saying he had been looking at the UK’s Green Investment Bank and Australia’s Clean Energy Finance Corp as models to help fund the clean-tech sector.

The policy document said an independent working group would be set up to determine the final shape and size of the bank, with the second years devoted to establishing the entity. A government line of credit would be opened in the third year.

The bank would be run on a for-profit basis, seeking private sector partners until a time when clean-tech investments become commercially viable for mainstream investors.

The policy paper also said one of the Green Party’s priorities in government will be to establish a fair price carbon to support green investment, without indicating what that price is.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Housing Policy: Auckland Densification As Popular As Ebola, English Says

Finance Minister Bill English said calls by the Reserve Bank Governor for more densification in Auckland’s housing were “about as popular in parts of Auckland as Ebola” would be. More>>

ALSO:

Crown Accounts: NZ Government Deficit Smaller Than Expected In First Half

The New Zealand government's operating deficit was smaller than expected in the first six months of the financial year, as the consumption and corporate tax take rose ahead of forecast in December, having lagged estimates in previous months. More>>

ALSO:

Fruit & Veg Crackdown: Auckland Fruit Fly Find Under Investigation

The Ministry for Primary Industries (MPI) is investigating a find of a single male Queensland fruit fly in a surveillance trap in the Auckland suburb of Grey Lynn... MPI has placed legal controls on the movement of fruit and some vegetables outside of a defined circular area which extends 1.5km from where the fly was trapped in Grey Lynn. More>>

ALSO:

Scoop Business: Westpac NZ Reaches $2.97M Swaps Settlement

Westpac Banking Corp’s New Zealand unit has agreed to pay $2.97 million in a settlement with the Commerce Commission over the way the bank sold interest rate swaps to farmers between 2005 and 2012. More>>

ALSO:

Going Dutch: Fonterra Kicks Off $144M Partnership With Dutch Cheese Maker

Fonterra Co-operative Group, the world’s largest dairy exporter, has commissioned a new dairy ingredients plant in Heerenveen, in the north of the Netherlands, its first wholly-owned and operated ingredients plant in Europe. More>>

ALSO:

Scoop Business: NZ Retail Sales Beat Estimates

New Zealand retail sales rose more than expected in the fourth quarter, led by vehicle-related transactions, food and beverages, adding to evidence that cheap credit and a growing jobs market are encouraging consumers to spend. More>>

ALSO:

Delivery Cuts Go Ahead: 'Government Money Grab' From NZ Post

"It's a money grab by the Government as the shareholder of New Zealand Post" says Postal Workers Union advocate Graeme Clarke about the changes announced by NZ Post. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news