The oil and gas industry body Petroleum Exploration and Production Association of NZ (PEPANZ) said yesterday that Greenpeace got it wrong when it claimed there were subsidies for the oil and gas sector.
PEPANZ chief executive Cameron Madwick said there are no direct subsidies for the oil and gas industry in New Zealand and Greenpeace has its facts wrong.
“Claims of major subsidies are wrong and complete rubbish. This myth was addressed just last week in the Productivity Commission’s latest report,” Madgwick said.
“In fact, our industry is a major net contributor to New Zealand. The Government receives 42% of all profit from any producing field, with an average of $500 million per year in taxes and royalties going to the Crown.
“The Productivity Commission looked at the issue of subsidies in their Low emissions economy report last week and found that while it has been claimed there are subsidies of over $70 million, the vast majority of this is a rebate of fuel excise to off-road users.”
This, he said, recognises that those who don’t use roads shouldn’t have to pay what is essentially a user payment for road construction and maintenance.
Madwick said according to the report: "New Zealand provides only minor - less than $4 M a year - Government support to activities with some relationship to fossil-fuel production and consumption.
“Of this $4 M, around $3.2 M of that goes towards petroleum geoscience which has other uses such as increasing our knowledge of fault lines and natural hazards.”