New Electricity Tax To Subsidise Private Corporations & Fossil Fuels
National Party, laser focused on the cost of living, threw away ~$1 billion on ferries, introduced Paywave changes that will increase fees & are now levying a new tax on Kiwi families and businesses
Video is open to all subscribers. Thanks and have a great week ahead, folks.
Correction: Have changed the acronym. Sorry for the night mistake
This afternoon, Auckland Takapuna MP and “Climate Change”1 Minister Simon Watts fronted up to media with Christopher Luxon.
Their announcement:
A minimum $1 billion new investment to build an LNG gas import facility in Taranaki, and a “levy” to be introduced to fund its build and operations.
Victor Consulting Director Clint Smith calculated the tax to cost $90 - $180 million a year. Of that, $28 to $56 million will hit households directly with the rest flowing through to higher prices, higher business failures2, and fewer jobs.
Estimates because National refuse to give us precise numbers - either of the build or operations.3
Compass Climate’s Christina Hood said this was a disaster for renewable energy, pointing out that the government was effectively subsidising fossil fuels and harming the prospect of solar, wind and hydro:
“$22/GJ subsidy is the equivalent of a $407/tonne carbon price subsidy. How are clean alternatives like biomass, pumped hydro or demand response supposed to compete with the playing-field tilted against them to the tune of $407/tonne?
The right way to lower consumers’ bills is to actually start with the cheapest options, not pick an eye-wateringly expensive one and hide the cost.”
That sounds strategic against this government’s track record:
National cancelled the Lake Onslow hydro renewables project within 100 days of government, in a move labelled “disgraceful” and leaving a “significant gap” in NZ’s energy plans.
National also cancelled the Clean Car Subsidy, after Luxon claimed it, ensuring EV sales cratered.
Meanwhile, Simeon Brown opened the doors for old, high polluting cars to be dumped in our country.
National also reneged on an election promise to fund EV charging networks, claiming after the election that it was more of an aspiration than a firm intention.
They’ve repealed Labour’s offshore oil and gas ban, have committed to large scale mining irrespective of environmental concerns or viability, are actively reviewing options to open up to 2/3 of NZ’s conservation lands for sale or commercial activity, have slashed emission targets, stacked climate boards with industry e.g. dairy industry, while insulting respected climate scientists and environmentalists as “worthies” and defending mining executives at every turn.
There couldn’t be a more pro-fossil fuel government than if Peter “I’ll be mining’s best friend” Dutton had won the Australian election last year.
When asked why the government was taxing electricity but not gas today, Luxon looked down while Watts claimed it was because the project was to benefit electricity providers and where the cost would go.
When asked why consumers should have to subsidise big gentailers when they have been making record profits and prioritising dividends over investment, Watts said there was no point looking backwards.
And when asked if National’s claims that this project would reap benefits and savings to Kiwis could be guaranteed, Watts pivoted to words like “independent advice” and “status quo” and “confident”.
Only we’ve all heard that before from Watts.
He’s the same Minister who promised Kiwis in 2023 that Local Water Done Well (National’s 3 Waters) would not increase rates, and would be cheaper or at status quo with Labour’s plans.
Fast forward to after the election, and it turns out rates not only skyrocketed after the 3 Waters repeal, Local Water Done Well will cost $9 billion more than expected, while Watts refused to take questions about it last year.
You can’t trust National.
And you sure as hell can’t trust Auckland MP Simon Watts.
What we can trust is that this government always supports corporate socialism and corporate welfare - and to pile this on top of Kiwis during a cost of living crisis, when we have lost 1% of our population in just the last year and unemployment has increased 50% in key age groups - is simply unconscionable.
