This government are economic jihadists

Photoshopped image credit: Pixy

Stuff ?reports: quote.

A body representing seismic testing companies is demanding more than $100 million in compensation for its members if the Government passes a ban on issuing new exploration permits.

On Friday the International Agency of Geophysical Contractors presented on the final day of submissions on changes to the Crown Minerals Act to give effect to the?ban on new permits the Government announced in April.

IAGC members claim they have invested heavily gathering data on areas not covered by exploration permits. While this has led to claims that the business model is highly speculative,?MinterEllison?partner Rachel Devine, representing IAGC before the environment select committee, said the Government encouraged companies to seek data to make the block offer process competitive. end quote.

That would have been the previous government, of course. Be that as it may, the next government is still bound by obligations made by the outgoing government. Otherwise, it would be a complete reset every time.

Well, it was a complete reset this time. quote.

“They’ve spent money in reasonable expectation that the regime would be the way it is, it’s been set up to entice them to come in and do these things for the benefit of the New Zealand government,” Devine said, claiming that the legislation would strip the companies of property rights they had spent $104 million acquiring. end quote.

Of course, it will. Instead of taking advice on issues precisely such as this, Jacinda wanted to look good for her European tour and now we get the bill. quote.

“Passing this bill will put New Zealand on a blacklist of countries with sovereign risk,” she said. end quote.

Okay. Want a definition of ‘sovereign risk’? This from Investopedia : quote.

Emerging economies were encouraged to borrow the dollars sitting in European banks to fund additional economic growth. However, most of the developing nations did not obtain the level of economic growth that the banks expected, making it impossible to repay the U.S. dollar-denominated debt borrowings. The lack of repayment caused these emerging economies to refinance their sovereign loans continuously, increasing interest rates. end quote.

Oh yes. New Zealand really wants that.

Are you starting to understand what a bunch of primates we have in government now? That they would put us at risk like this while that imbecile, Megan Woods, just swats away the possibility like a sandfly at the beach? quote.

In preparing the submission, IAGC members “were all discussing how New Zealand was closed for business. That’s not just the oil and gas sector, that’s about data companies. If this bill is passed they do see real sovereign risk associated with doing business in New Zealand”.

“It’s not realistic that the Government thinks this is going to go unobserved,” Devine said, adding that she had “personally seen through several boards considering the law change…who are now considering New Zealand to be one of those blacklisted countries that changes laws arbitrarily, over night, without compensation”. end quote.

Well, yes. That is exactly what they did. No one can argue with that. quote.

The bill, it’s process and passage, has heightened business concerns, caused declining business confidence, and raised sovereign risk concerns in New Zealand and internationally,” [Mark] Dunphy said, adding that passing the bill would not bring renewable technology closer, while a weaker economy which would result from the bill would reduce New Zealand’s options.

“If passed, it will represent an ill-timed, ill-considered, undemocratic shot in the foot for New Zealand.” end quote.

We already know this. We have about 7 years of gas reserves if we are lucky. It is all going to turn nasty very soon. quote.

National energy spokesman Jonathan Young said the prospecting undertaken by IAGC members had been “an integral part of the block offer system” which the Government had profited from.

“The Crown basically?don’t think they have a legal claim on them but I would certainly say there’s an ethical one there, especially if this is damaging New Zealand’s reputation.” end quote.

The government may think they have no legal obligation, but time will tell. These prospecting companies have deep pockets and New Zealand is a small place. This could be very embarrassing and expensive for this government, not to mention very expensive for the taxpayer. But hey, Jacinda needed to look good in Europe. As we have now come to see, that is all that matters – isn’t it, comrades?