We have a fuel crisis in New Zealand, and it is not only hurting all private and business consumers, but it will also drive inflation back up to an uncomfortable level seen only a year or so ago. We believe the government's action to give targeted relief to working families is completely misguided and does not address the farming community, tradies, transportation of goods and services across our nation or the individual who has no dependents living with them.
The Government said that the targeted relief will not raise inflation. Well, this is just not true; we know prices are starting to rise in all sectors of manufacturing and production, as well as the transportation of goods and services into the regions. Price rises are already coming across the desks of many company directors, and the prudent thing to do in an economic environment where margins are already tight is to pass this added cost on to the consumer... This is called inflation.
There are many levers that can be used to lessen the economic effects on individuals and businesses that do not lift interest rates.
Firstly, we would have given excise tax relief directly at the pump, reducing the tax take while being slightly offset by the increase of the GST component. Balance New Zealand would have a policy to cap all petrol and diesel at less than $2.80 per/litre.
Secondly. Marsden Point, Yes, we do want to transition to more renewable energy, but we still need to be able to have energy security while this happens. Historically, we had the ability to refine our petrol and diesel here until the two refineries were closed and mothballed. We believe we need to reopen one of these refineries to have the ability to refine gasoline products here in New Zealand and not be dependent on outsourcing 100% of our liquid energy supplies.
New Zealand still needs to maintain its strategic insurance in fuel resilience. Re-opening Marsden Point would restore jobs and provide a domestic fuel source, reducing the reliance on foreign supply.