Misleading statements used to justify another $16 million in corporate welfare for big business

Misleading statements used to justify another $16 million in corporate welfare for big business

The Taxpayers’ Union is calling out Minister of Energy and Resources, Megan Woods, for her claim that the Government Investment in Industry Decarbonisation Fund (GIDI) will reduce New Zealand’s emissions.

Announcing the Round Four recipients of the GIDI fund, including the likes of Fonterra, AFFCO and Ovation, Minister Woods claimed that the $16 million taxpayer subsidy “will reduce carbon emissions by 38,354 tonnes each year.”

Taxpayers’ Union Campaigns Manager, Callum Purves, says:

“This is a blatantly misleading statement and will not reduce New Zealand’s net emissions by a single gram.

“As we have previously noted, New Zealand’s emissions are already governed by the capped Emissions Trading Scheme (ETS) meaning that any emissions reduction from these businesses will simply free up carbon credits for other businesses to emit instead.

“Taking into account the co-funding from these businesses, the cost per tonne of gross emissions reduction is $52. That is less than the current carbon price so these businesses should already have the financial incentives to invest.

“The taxpayer is not a piggy bank. These are large, profitable businesses, if they need money, they can go to a real bank like any other business.

“The Minister needs to front up to the taxpayers who, during a cost of living crisis, are being forced to fork out millions to subsidise some of our largest businesses. With another $570 million in corporate welfare yet to come, this fund should be immediately scrapped rather than further fueling inflation.