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NZIER report shows devastating impact on Taranaki from oil and gas decision

Contributor:
Fuseworks Media
Fuseworks Media

Last year’s oil and gas exploration decision could cost the Taranaki economy $30 billion by 2050, according to a new study by the New Zealand Economic Institute for Economic Research (NZIER).

"Taranaki will bear the brunt of this decision, with major job losses and lower incomes," says Petroleum Exploration and Production Association of New Zealand (PEPANZ) CEO Cameron Madgwick.

"Employment in the region could fall by between 3.2% and 6.6%, many skilled workers will leave and there will be less investment into the region.

"The Taranaki economy could shrink by as much as $40 billion, a major blow to the region. According to the report:

‘In Taranaki, all indicators of economic growth and wellbeing will decline. The medium scenario drop in real GDP for Taranaki is roughly equivalent to a $21,000 reduction in household incomes each year.’

"This is the first proper analysis of the wider impacts this decision will have and it is very sobering. It shows a major reduction to the standard of living in Taranaki for no apparent environmental gain.

"This is new information which was not available to the Government when the legislation was rushed through Parliament last year. It strongly reinforces the need for an independent review and rethink of this policy."

The research was commissioned by PEPANZ and is available here: https://www.pepanz.com/assets/Uploads/NZIER-Economic-impact-of-ending-new-oil-and-gas-exploration-permits-outside-onshore-Taranaki-February-2019.pdf

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