28 NOVEMBER 2019

Taxpayer-funded decommissioning of an oil field is outrageous

Responding to news that taxpayers may have to cover the $155 million cost of decommissioning a Taranaki Oil field, New Zealand Taxpayers’ Union spokesman Louis Houlbrooke says:

“The fact taxpayers could be footing this bill is alarming and begs the question of why we are liable for any decommissioning costs in the first place.”

“On one hand, the Government is banning new oil exploration. On the other, it’s offering to use taxpayer money to help oil companies cover costs. In other words, two dumb, contradictory policies from different governments have come together to hammer taxpayers twice.”

“A common sense approach would be to welcome oil exploration and the tax revenue it brings – but with bonding or compulsory insurance so that taxpayers are ensured that oil companies can and do cover shutdown costs.”

ENDS

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