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Decommissioning Bill Another Blow To Energy Affordability And Security

National will repeal Labour’s decommissioning legislation for the oil and gas industry that will push energy prices up and risk more blackouts, says National’s Energy and Resources spokesperson Barbara Kuriger.

“The oil and gas industry has to take responsibility for decommissioning wells and the law should be tightened, but Labour is going way over the top with ludicrous overkill.

“Holding former permit-holders liable long after they’ve transferred ownership is fundamentally unfair and a radical change to business law. On top of that, the various funds and requirements are a blatant money grab from businesses, given they are already required to prove they have decommissioning funds available.

“It’s no wonder other industries are concerned and BusinessNZ asked for a rethink. It’s yet another blow to business confidence to have so many expert submissions ignored.

“New Zealand’s energy system is already under serious strain and this will only add to that.

“National will repeal this law and go back to the drawing board to get a balanced system that keeps the lights on and energy affordable for homes and businesses.

“We’ll also repeal the 2018 offshore exploration ban which has been a disaster, exactly as predicted. The price of energy is soaring, jobs are being lost and we are burning record amounts of imported coal just to keep the lights on.

“Importing LNG from Australia is now under serious consideration, which is just nuts.

“Given that we’re still going to need natural gas as we transition and develop new energy sources, it makes sense to keep our options open and use our own resources.”

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