Finance Minister Grant Robertson admitted this afternoon no Treasury analysis has been completed on the economic impact of the Government’s decision to ban oil and gas exploration, National’s Finance spokesperson Amy Adams says.
“It is staggering that on such an important economic issue, the Government has commissioned no analysis from the Treasury regarding the Government’s abrupt call to end oil and gas exploration in New Zealand,” Ms Adams says.
“In front of Parliament’s Finance and Expenditure Select Committee Mr Robertson confirmed he has neither received nor sought advice on how the economy would respond, and how this would impact forecast economic growth and tax revenue, including factors like electricity generation capacity and security of supply.
“It defies belief to think that the exploration sector will not already be experiencing a significant chilling effect as a result of the Government’s announcement. Investment decisions will need to be made over the next few years, and businesses and households will bear the cost.
“The ban will have a double whammy of a downturn in exploration activity and rising wholesale prices that will both dampen economic growth, particularly in our regions.
“Mr Robertson stated the Government received no advice on long-term oil, gas and electricity prices, on cost of living impacts, on how it would affect New Zealand’s economy, or on the impact to the Government’s tax revenue.
“It appears Mr Robertson simply doesn’t want to know how his Government’s political decision will impact on workers and Kiwi families.”