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

 

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

It's Spark Now:
Why Telecom Wanted To Change

New Zealand led the world when Chorus demerged from Telecom. It gave us a telecommunications industry structure where the network is completely separated from the products and services it delivers. The changes brought about a new market dynamic and it dramatically changed Telecom’s role. More>>

ALSO:

Glass Half Empty: Dairy Prices Fall To Lowest Since 2012

Dairy product prices slumped to the lowest level since October 2012 in the latest GlobalDairyTrade auction, paced by whole milk powder and cheddar. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

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