High cost for virtue signalling

Government officials estimate the ban on offshore oil and gas exploration will cost $7.9 billion.

. . .Foregone revenue to New Zealand could be higher under high exploration, $14 .3 billion, or as low as $2.7 billion with low exploration.  . .

Even if it is “only” $2.7 billion foregone that is only part of the cost.

. . .The Petroleum Exploration and Production Association of New Zealand (PEPANZ) says it is time for a re-think on plans to end new offshore exploration.

“The Regulatory Impact Assessment (RIS) shows that ending new offshore permits is a disastrous policy for New Zealanders, likely to cost the Crown $7.9 billion in lost revenue and potentially up to $23.5 billion,” says PEPANZ CEO Cameron Madgwick.

“Importantly, this is only a part of the picture. Company profits could also reduce by billions which will cost jobs and investment into New Zealand, and the wider economic costs have not even been modelled.

“At the same time, it is considered more likely to increase greenhouse gas emissions than reduce them. It’s hard to think of a worse overall outcome.

“As well as the lost revenue it will mean higher energy prices for New Zealand homes and businesses, increasing the cost of living and destroying jobs. . .

That is a very high price for a policy that is at best virtue signalling and at worst will not only have a high economic cost, but a high environmental one too.

Good government would ensure there are viable and sustainable alternatives before a policy to knock off an industry and kill off a local supply of energy was announced.

Instead of which, we’ve been given blurt and hope – policy announced without any consideration of the costs and consequences.

That is not a credible way to run a country.

 

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