Friday, 19 August 2022
Meet the JournalistsPremiumAucklandWellingtonCanterbury/South Island
CrimePoliticsHealthEducationEnvironment and ClimateNZ Herald FocusData journalismKāhu, Māori ContentPropertyWeather
Small BusinessOpinionPersonal FinanceEconomyBusiness TravelCapital Markets
Politics
Premium SportRugbyCricketRacingNetballBoxingLeagueFootballSuper RugbyAthleticsBasketballMotorsportTennisCyclingGolfAmerican SportsHockeyUFC
NZH Local FocusThe Northern AdvocateThe Northland AgeThe AucklanderWaikato HeraldBay of Plenty TimesHawke's Bay TodayRotorua Daily PostWhanganui ChronicleStratford PressManawatu GuardianKapiti NewsHorowhenua ChronicleTe Awamutu Courier
Covid-19
Te Rito
Te Rito
OneRoof PropertyCommercial Property
Open JusticeVideoPodcastsTechnologyWorldOpinion
SpyTVMoviesBooksMusicCultureSideswipeCompetitions
Fashion & BeautyFood & DrinkRoyalsRelationshipsWellbeingPets & AnimalsVivaCanvasEat WellCompetitionsRestaurants & Menus
New Zealand TravelAustralia TravelInternational Travel
Our Green FutureRuralOneRoof Property
Career AdviceCorporate News
Driven MotoringPhotos
SudokuCodecrackerCrosswordsWordsearchDaily quizzes
Classifieds
KaitaiaWhangareiDargavilleAucklandThamesTaurangaHamiltonWhakataneRotoruaTokoroaTe KuitiTaumarunuiTaupoGisborneNew PlymouthNapierHastingsDannevirkeWhanganuiPalmerston NorthLevinParaparaumuMastertonWellingtonMotuekaNelsonBlenheimWestportReeftonKaikouraGreymouthHokitikaChristchurchAshburtonTimaruWanakaOamaruQueenstownDunedinGoreInvercargill
NZ HeraldThe Northern AdvocateThe Northland AgeThe AucklanderWaikato HeraldBay Of Plenty TimesRotorua Daily PostHawke's Bay TodayWhanganui ChronicleThe Stratford PressManawatu GuardianKapiti NewsHorowhenua ChronicleTe Awamutu CourierVivaEat WellOneRoofDriven MotoringThe CountryPhoto SalesNZ Herald InsightsWatchMeGrabOneiHeart RadioRestaurant Hub

Advertisement

Advertise with NZME.
Business

NZ CEOs say Government jumped the gun on oil and gas ban

2 Oct, 2018 04:00 PM3 minutes to read
Climate Change Minister James Shaw. Photo / Mark Mitchell

Climate Change Minister James Shaw. Photo / Mark Mitchell

NZ Herald
By Tim McCready

The Coalition Government's "oil and gas ban" provoked a strong response from CEOs, many saying it contributed to the downturn in business confidence.

Some 77 per cent of respondents to the 2018 Mood of the Boardroom survey agreed the Government should have waited until the Productivity Commission set out its pathway to a low emissions future and taken that advice on board before making a decision.

While CEOs acknowledge the nature of the decision would have been unpopular with some whenever and however it was done, they describe the decision as "egregious" and "naive" for its urgency and suddenness.

A residential construction boss says it had contributed to the lack of confidence business has in the Government: "The absence of consultation on this issue and the manner in which it was announced was frankly bizarre. I suspect a lot of the concerns larger businesses have around Government policy direction stem from this single decision."

Advertisement

Advertise with NZME.

The ban on new offshore oil and gas exploration was jointly announced in April by Prime Minister Jacinda Ardern, Regional Economic Development Minister Shane Jones and Climate Change Minister James Shaw.

The Crown Minerals (Petroleum) Amendment Bill took the industry by surprise — largely as it was not part of a confidence and supply or coalition agreement, had not been explicitly promised by Labour during the election campaign, and was announced without being robustly contested through Cabinet consideration.

Chen Palmer's Mai Chen says the Government can do what it wants to do, but the way it did it wasn't ideal. "This affected business confidence, and they are now having to unspook business that the same approach will not be taken to other industries."

"Moving too quickly has created uncertainty over future energy sources. Change without a transition plan risks unintended negative consequences," says an infrastructure advisory firm boss.

A CEO from the entertainment industry suggests waiting might have enabled the Government to provide greater substantiation: "The decision to do something in itself is to be commended, but it might have had greater support if the process had been better."

Support for the decision — but not the process — shone through from some of respondents, with suggestions that it could provide an opportunity for New Zealand.

Related articles

Business

Brian Fallow: Inequality a tough target for Cullen tax review

27 Sep 05:00 PM
Business

Spendthrift Italy risks credit downgrade

28 Sep 09:44 PM
Business

Comment: A worrying trend of boardroom 'box ticking'

02 Oct 05:00 AM
Business

Muted response to R&D tax incentive

02 Oct 04:00 PM

Fifteen per cent of respondents believed the Government was right to move when it did; 8 per cent were unsure.

"New Zealand is well-placed to develop alternative technologies for renewable replacement of fossil fuels — and without tension, this will never occur," says Wellington Energy CEO Greg Skelton. "The scarcity of local fossil fuel will drive the required innovation and set New Zealand up as an international leader in this area."

Advertisement

Advertise with NZME.

A boss in the marketing industry feels that 40 years, with current licenses still to be executed, provides enough time to adjust.

"A clear signal was needed to the industry to look at what they do now and plan to change, rather than carrying on as in the past."

Advertisement

Advertise with NZME.

Latest from Business

Premium
Business

Cameron Bagrie: Why the role of banks deserves a lot more scrutiny

18 Aug 08:00 PM
Premium
Business

Why Zespri's new US market could help grow China exports

18 Aug 06:28 PM
Premium
Business

The former bankers taking a bite out of the $110 billion business lending market

18 Aug 05:00 PM
Premium
Business

Stock Takes: Fund manager performance fees take a hit

18 Aug 05:00 PM
Premium
Business

Matthew Hooton: It's not easy being Green - what Labour, Nats can learn from Shaw battle

18 Aug 05:00 PM

Most Popular

Premium
'Unbelievable': How Govt crackdown failed to protect women against surgical mesh harm
New ZealandUpdated

'Unbelievable': How Govt crackdown failed to protect women against surgical mesh harm

18 Aug 08:00 PM
Listen: Gaurav Sharma fronts as caucus considers 'motion to expel'
New Zealand|PoliticsUpdated

Listen: Gaurav Sharma fronts as caucus considers 'motion to expel'

18 Aug 07:18 PM
Live: Nature's fury - 400+ Nelson homes now evacuated; rain warnings for Auckland, North Island
New ZealandUpdated

Live: Nature's fury - 400+ Nelson homes now evacuated; rain warnings for Auckland, North Island

18 Aug 07:10 PM

Advertisement

Advertise with NZME.
About NZMEHelp & SupportContact UsSubscribe to NZ HeraldHouse Rules
Manage Your Print SubscriptionNZ Herald E-EditionAdvertise with NZMEBook Your AdPrivacy Policy
Terms of UseCompetition Terms & ConditionsSubscriptions Terms & Conditions
© Copyright 2022 NZME Publishing Limited
TOP