Government rethink urged on oil and gas ban

Government rethink urged on oil and gas ban

Source: Business Central

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The Government’s rushed decision-making, and now its rushed legislative process, to usher in the ban on new offshore oil and gas exploration permits in New Zealand must be reconsidered, says Business Central CEO John Milford.

"Businesses are calling on the Government to rethink its cavalier approach to such a fundamental part of Taranaki’s regional economy," says Mr Milford.

"Business confidence relies on the Government laying out its economic plan clearly. Announcing the effective end of an entire sector of our economy without consultation and then pushing the legislation through Parliament under urgency will do nothing to boost confidence that the Government is following a sensible economic strategy.

"The advice from officials to ministers warns of big economic consequences if this policy is pursued, including tax losses estimated at $8 billion over the next two decades.

"Furthermore, this policy will probably increase global greenhouse gas emissions - the very problem the Government is supposedly trying to tackle.

"Meanwhile, significant employers and exporters, such as Balance Agri-Nutrients and Methanex, are shelving their investment plans, meaning everyone loses out from reduced innovation and productivity.

"The Government has the opportunity to turn poor business confidence and economic growth forecast numbers around. But that starts by rethinking significant policy changes that will adversely affect business, such as the employment law reforms, addition of more taxes, and gutting of the oil and gas sector."

ENDS

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