Source: BusinessNZ
BusinessNZ welcomes the Government’s announced loan scheme to help commercial and industrial gas users transition, in the face of significant gas price increases and rapidly declining domestic production.
Director of Advocacy Catherine Beard says until now, successive governments have pursued a net-zero goal without a workable transition plan that keeps businesses and jobs intact.
“Whereas GIDI changed the economics of a project at a business-by-business level through government grants, this loan scheme should be more accessible to all businesses who fit the criteria.
“As outlined in our latest BusinessNZ Energy Council report, ‘ The need for Government Assistance in the Gas Transition‘, we have advocated for sharp, policy-driven transition in a way that protects jobs, production, and New Zealand’s economic base. Today’s announcement of a conditional loan scheme, ensuring targeted investment, should help businesses to do just that.
Beard says the de-industrialisation of critical sectors has already begun, with the high cost of gas adding to the struggle to remain competitive and profitable.
“Aiding the transition to alternate fuels is a sensible step and ensures New Zealand’s intensive energy users will be around to make use of the surplus we are working so hard to secure.
“Today’s announcement should prevent avoidable closures, retain capability, and reduce long-term costs to the economy.”
The BusinessNZ Network including BusinessNZ, EMA, Business Central and Business South, represents and provides services to thousands of businesses, small and large, throughout New Zealand.