Greens plan ‘Kiwibank of the Green economy’

Green Party co-leader James Shaw says oil companies operating in New Zealand pay some of the lowest royalties in the world

RELATED AUDIO: The Greens, anyway, are acting as though their eyes are on the 2020 election, not this one (Jul 13)

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The Green Party wants to establish a government-owned Green Infrastructure Fund to attract private finance for low carbon, climate-resilient projects.

But it will come at the cost to oil companies who would be looking at an almost 25% hike on royalty rates.

The Green’s co-leader James Shaw made that policy announcement today at the party’s annual meeting.

Establishing the fund would cost $10 million, plus an additional $100 million line of credit over three years that would be paid for by raising royalty rates on oil drilling from 46% to 70%.

Mr Shaw says New Zealand has one of the lowest oil royalty rates in the world and, by bringing it up to 70%, would align the country with most other countries which have an oil industry.

“In time, the fund will invest billions of dollars of (mainly) private sector finance into funding new renewable energy plans, solar panel installations, energy efficiency retrofits, biofuels and other clean technology projects,” the policy says.

Mr Shaw says it’s an “arm’s length fund” and although it will be owned by the government, it will operate according to commercial disciplines.

“It has to have a profit margin and will have a minimum rate of return,” which the policy states is 5%.

In fact, the party has even gone as far as saying it will become the “Kiwibank’ of the green economy.”

The Greens are confident this initiative will work, citing examples of other countries that have established similar funds, including Australia, Japan, Malaysia, the United Arab Emirates and some US states.

“The experience from overseas suggests that every $1 of government finance can attract up to $10 of private finance,” the party's policy document says.

Although the fund directors will be “completely independent of government,” they are likely to put funds into investments like renewable energy projects (wind and solar), smart LED street lights and innovations in waste and resource recovery.

In terms of getting the fund off the ground, Mr Shaw says it’s the party’s intention to get the fund up and operating within 12 months of taking office in a coalition government.

He says his party’s ambition is for New Zealand’s economy to be carbon-neutral by 2050 and this fund will help begin that transition.

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I laughed out loud reading the opening paragraph by the Greens "to attract private finance for low carbon, climate-resilient projects" , I have invested in start ups and and i am not risk averse when it comes to spending capital but anything associated with the Greens is to be avoided like the plague

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"Mr Shaw says New Zealand has one of the lowest oil royalty rates in the world and, by bringing it up to 70%, would align the country with most other countries which have an oil industry."

Doing a Goff style "Pillow Tax" and raising rates 100% over current royalties will kill whatever tiny oil industry we do have. Where will the funds come from then? Oh, that's right, the never-ending pit that is the taxpayer!

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Not sure, seems the Greens priority is to make sure taxpayer is busy supporting those on welfare to do less

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Greenies come in different flavours. The Green Party has a small and falling number of people who are anti-vaxers and seemingly want to return to live in the bush. The newer smarter ones are long term thinkers, understand the science behind climate change and, in this case, the money to be made from more efficient power production and use. Elon Musk's Tesla is a good example of a company that gets this - and they are already worth more than GM.

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These newer, smarter Greens could do worse then read Lee Kuan Yue's thoughts on issues such as welfare, international relations and education, so could Labour and National for that matter

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The easiest way for NZ to reduce carbon emissions is to reform the electricity sector. And to fast track resource consents for all renewable generation construction.

But the green party opposes major hydro generation construction. Which causes massive emissions increases due to fossil fuels being used to generate power that could have been generated by hydro and wind.

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With all the hype over the red-herring called Global warming, when is it actually going to kick in and when will the seas start to rise? Certainly seems to be absolutely no sign of any temp rises. Indeed, seems a lot colder these days than it used to be.
However, if the greens wish to link economic fortunes to the big yellow thing in the sky....the same pig flying policy theory might proclaim that a few extra metres on the shore line (no sign of that either ) will mean a nice coastal view and therefore will do wonders for my property value. Loons!

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"Indeed, seems a lot colder these days than it used to be."
That's winter - happens every year. But the snow doesn't fall as much as it used to and the glaciers have retreated. The central Southern Alps were reported, by Fairfax last year, as losing a quarter of their ice in recent decades. Lake Tasman only started to exist in the 1970s after Tasman Glacier retreated. And pedestrian access to Franz Josef and Fox Glaciers has ceased as the walks are too far. You can only get there by helicopter now.

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Pigs do not fly Lance.

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What about the Nuclear option - call another election if they don't get what they want. Spot the Looneys!

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I am unsure why but I expected a lot more from the Greens this time round. I thought having Shaw as part of the leadership would reign in all the vote buying policy of the past eg welfare increases of 20% with no expectation on the recipient to do anything. Has Turei taken leave of her considerable senses with this latest proposal? Every thing the Greens are proposing is just vote buying and it should be seen for what it really is; buying a seat at the trough.

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Me too. I am seriously considering not giving them my party vote which was entirely given in the past on environment environment environment. They have slipped further and further back to the old Values days and are muddying the waters. They do their Party Name a disservice.

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Aah yes, the 'Kiwibank of the Green Economy'

Definitely a clear clue to the assumption of never-ending top up by taxpayers. And for little to negligible added value coming out of the arrangement

At least Greens will be able to say 'don't say we didn't warn you!'

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The greens are a joke.im embarrassed that I even considered voting for them.

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