No taxpayer subsidies for oil and gas industry
Claims of special tax treatment for the oil and gas industry are incorrect, according to Petroleum Exploration and Production Exploration Association of New Zealand (PEPANZ) CEO Cameron Madgwick.
“This issue was thoroughly investigated by the Productivity Commission last year who concluded that ‘New Zealand provides only minor (less than $4 million a year) government support to activities with some relationship to fossil-fuel production and consumption.’
“Of this $4 million, around $3.2 million goes towards petroleum geoscience which has other uses such as increasing our knowledge of fault lines and natural hazards.
“There are no direct subsidies for our industry in New Zealand. In fact, we are a major net contributor to New Zealand. The Government receives 42% of all profit from most producing fields, with an average of $500 million per year in taxes and royalties going to the Crown.”
Editors note: Page 153 of the Productivity Commission’s report Low emissions economy is available at https://www.productivity.govt.nz/sites/default/files/Productivity%20Commission_Low-emissions%20economy_Final%20Report_FINAL_0.pdf