Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search


Oil Co.s Should Use Subsidy Money To Cut Prices

Oil Co.s Should Use Subsidy Money To Bring Down Pump Prices

Oil companies should use the cash they are currently putting into price subsidy schemes to bring down the price of petrol for all motorists, Deputy Prime Minister Jim Anderton says.

A report today reveals that Shell has joined BP in offering cash incentives to petrol retailers. The incentives are offered when retailers match the price charged by competing retail outlets.

The Commerce Commission is currently investigating the lawfulness of the subsidy schemes, following a request from Jim Anderton.

"If the big oil companies have spare cash available to help their retailers match the prices charged by competitors, then they should use it to bring down prices so that all motorists can benefit.

"One of the problems with the scheme is that it is a disincentive to retailers to lower their prices on a competitive basis. Retailers thinking of reducing prices face having their compettors subsidised to match them, so they all they are doing is losing revenue themselves while their competitors are being subsidised to maintain reveneue. It removes the incentive to compete on price," Jim Anderton said.


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The Geo-political Posturing Over China’s Cyber Hacks, Plus The Weekly Playlist

The timing was one of the weirder aspects of this week’s cyber condemnation of China by the West. Why was this piece of political theatre being staged now? China (and Russia’s) sponsoring and/or condoning of semi-state and criminal hacker groups has been known about for nigh on a decade. More particularly, Microsoft had been alerted to the flaws in its Microsoft Exchange... More>>


Government: Cabinet Accepts Turkish Authorities’ Request For The Managed Return Of Three NZ Citizens

Cabinet has agreed to the managed return of a New Zealand citizen and her two young children from Turkey, Prime Minister Jacinda Ardern announced today. The three have been in immigration detention in Turkey since crossing the border from Syria earlier this year... More>>


Government: Quarantine Free Travel With Australia Suspended

Quarantine Free Travel from all Australian states and territories to New Zealand is being suspended as the Covid situation there worsens, Prime Minister Jacinda Ardern and COVID-19 Response Minister Chris Hipkins announced today... More>>


Government: New Zealand Condemns Malicious Cyber Activity By Chinese State-sponsored Actors

New Zealand has established links between Chinese state-sponsored actors known as Advanced Persistent Threat 40 (APT40) and malicious cyber activity in New Zealand. “The GCSB has worked through a robust technical attribution process in relation to this activity. New Zealand is today joining other countries in strongly condemning this malicious activity... More>>


NZUS Council: Welcomes Nomination Of Senator Tom Udall As US Ambassador To NZ

The NZUS Council welcomes the nomination of Senator Tom Udall to the role of US Ambassador to New Zealand and Samoa, NZUS Council executive director Jordan Small said... More>>

BusinessNZ: Visa Extensions Welcomed
BusinessNZ has welcomed the extension of some critical skill visa durations and changes to immigration systems to speed processing. Chief Executive Kirk Hope says move acknowledges advocacy by the hospitality sector, the BusinessNZ Network and others, and comes not a moment too soon.... More>>

Social Development: Government Initiatives Contribute To Fall In Benefit Numbers

Minister for Social Development Carmel Sepuloni has welcomed the release of the June quarter Benefit Statistics which show a continuing fall in the number of people receiving a Main Benefit... More>>




InfoPages News Channels