Government announces project that will significantly reduce coal consumption

Written By: - Date published: 8:47 am, May 22nd, 2023 - 102 comments
Categories: chris hipkins, climate change, Environment, ETS, greens, james shaw, labour, science - Tags:

This is huge.

The Government has done a deal with the owners of New Zealand Steel that will see the company replace its coal fired furnace with a renewable energy supplied electric arc furnace.

From Radio New Zealand:

NZ Steel’s Glenbrook plant will install an electric arc furnace – halving its coal use – in what the government is calling the country’s largest ever emissions reduction project.

Half of the coal being used at the site will be replaced with electricity to recycle scrap steel.

Prime Minister Chris Hipkins has announced plans for the project at a media briefing at the site in south Auckland this afternoon.

NZ Steel – which employs 4000 people in its New Zealand and Pacific operations – is the country’s only producer of flat rolled steel products for the building, construction, manufacturing and agricultural industries. It produces about 670,000 tonnes of steel each year for products that include roofing and structural beams.

Under the announcement today, the company will receive up to $140 million from the Government Investment in Decarbonising Industry (GIDI) Fund and it will foot the bill for the rest of the cost, which has not been specified.

The agreement has three components:

  • Base build funding support up to $110m
  • An extra $10m commissioning funding incentive paid if NZ Steel can get the furnace running by January 2027
  • A further $20m of performance funding paid if NZ Steel can achieve a further 800,000 tonnes of emissions reductions by 31 December 2030 above the base amount committed to in the agreement

The government says the project means 800,000 tonnes of pollution can be removed from the atmosphere each year – the equivalent of taking 300,000 cars off the road. It will also achieve over 5 percent of all New Zealand’s required emissions reductions between 2026-2030 and and 3.4 percent within the third emissions budget (2031-2035).

The deal is the sort envisaged by the Emissions Trading Scheme.  Set a price for Carbon, collect money from the large emitters and then use the funds to reduce emissions.

Expressions have been and will be expressed about this being corporate welfare but the bottom line is that this is a significant portion of the country’s greenhouse gas emissions.

And we need the steel.  As Ad pointed out wind farms need mines, and steel.

The last two years have seen reductions in the country’s greenhouse gas emmisions.

Christopher Luxon clearly thinks he could have done a better deal.  From Rachel Sadler at Stuff he is quoted as saying this:

“I thought that announcement was outrageous, actually, because it just says to me that this is a Government that’s got its priorities all wrong. Just this week, this Budget couldn’t find money to actually help support Kiwis going through a tough cost of living crisis. But all of a sudden they can find $140 million as a subsidy paid for by Kiwi taxpayers and give it to a large foreign, multinational, profitable company.”

It was money from the ETS and paid by polluting kiwi taxpayers.  The money is from a contestable fund that has made a number of grants already.

But National clearly thinks that lazy rhetoric is a viable political option.

What I would like to know is what would they do?  After all they do promise to a country where industrial processing plants are powered by clean electricity, not coal.

And the clock is ticking and the need to reduce emissions has never been clearer or more urgent.  They owe it to the country to say exactly what they would do and what they would change.

Congratulations to the Government.  By this one deal it has taken a significant step to its goal of reducing emissions by 50% by 2030.

102 comments on “Government announces project that will significantly reduce coal consumption ”

  1. Ad 1

    Appreciated this morning that the funding for this came from the emissions fund ie from polluters not taxpayers.

    I would like to hear a more concrete commitment from BlueScope to staying in the country.

    Also I would like to have heard a more fulsome commitment by the CEO of Contact to ensuring no electricity generated by coal. That would also put pressure on Genesis at Huntly to shift to gas rather than importing brown coal.

    I guess this is just one of those industries that we have to keep subsidising if we are going to have local steelmaking in the country.

    So congratulations to Prime Minister Hipkins, and to Ministers Woods and Shaw. A really good post-budget hit.

    • Gosman 1.1

      That is like stating we don't pay GST because businesses do. Businesses factor in the cost of Carbon credits in to their financial models and pass on much of the costs to the end consumer.

      • Ad 1.1.1

        Not if NZSteel can't compete against imported steel, as they can't at the moment.

        • Gosman 1.1.1.1

          You are discussing a different thing then. What you are wanting is for NZ to have a Steel industry not that we will reduce our carbon emissions.

          • Incognito 1.1.1.1.1

            No, we (the Government) want a steel industry and reduce carbon emissions.

            • Gosman 1.1.1.1.1.1

              I've told you that this deal won't make a difference to our overall carbon budget. That is set by the ETS and all this does is free up carbon credits to be used by others in another area of the economy.

              • Incognito

                And I have already told you that you’re talking porkies. If you keep ignoring information provided by others who are silly enough to engage with you still then you classify as troll.

                • Gosman

                  I have addressed the information provided by others. We have a carbon budget that is based on our international obligations agreed at Climate change conferences like Paris. We have set up the ETS as the mechanism to meet our obligations. The most the agreement with NZ Steel does it reduce the likelihood that someone has to purchase carbon credits on an international carbon market. This just means we are paying someone overseas to reduce carbon emissions rather than doing so in NZ but the net effect in the World is essentially the same.

                  • Incognito

                    No!

                    800,000 tonnes less emissions into the atmosphere each year is real and a real 5% of all NZ’s required emissions reductions between 2026-2030 and 3.4 percent within the third emissions budget (2031-2035), as per OP.

                    You cannot deny this nor wish it away. What NZ Steel does with its NZUs doesn’t let other polluters off the hook until this nation as a whole has met its targets. FYI, I believe that on current trajectory NZ is going to miss its agreed international targets.

                    Stop blowing hot air!

                    • infused

                      It makes zero difference.

                      China churned out about 390 million tonnes of coal last month, data from the National Bureau of Statistics (NBS) showed on Thursday, equivalent to 13.04 million tonnes per day. That leapfrogged the previous peak of 12.89 million tonnes in September, and was up from 12.36 million tonnes a year before

                      Until other countries are bought inline, this is for nothing.

                      [When you quote, you must provide a link. Or take a ban – Incognito]

                    • Incognito []

                      Mod note

                    • Incognito []

                      We have a moral and legal obligation to reduce its greenhouse emissions, regardless of what other countries do, because we have signed up to international agreements that commit us, together with the signatories, to taking action on climate change and supporting global efforts to limit warming to 1.5°C above pre-industrial levels. New Zealand also has a high carbon footprint per capita. We cannot afford to be complacent or irresponsible about our contribution to climate change, which is already affecting our environment, economy, and society.

                      You sound like a binary absolutist denier of Climate Change and any efforts to combat it.

                    • RedLogix

                      @Incognito

                      I believe targets based on Carbon footprints/capita are the wrong measurement because it is trivial to achieve if you simply revert to pre-Industrial zero carbon economies and the mass poverty that physics imposes on this.

                      The correct measurement is Carbon/Unit GDP which includes human development and welfare in the mix.

                      As for doing ‘our fair share’ you are in a strict moral sense correct. Yet the commenters above also have a valid point – the only thing that matters is total carbon emissions globally.

                      And while taking a moral stand is well and good, it counts for little if others treat it with contempt.

                      And before you attempt the absurd stretch of calling me a climate change denier – my view is firmly located in the measures necessary to solve the problem. As contrasted to ideologically nice virtue signals.

                    • Incognito []

                      @ RedLogix

                      Thank you for sharing your beliefs (incl. your old red herrings). None of it changes the fact that NZ has a legal and moral obligation to meet its targets. I don’t believe it is compulsory for you to sign up to those targets as individual and commit to what Government, on our behalf, has decided as necessary. Your lack of enthusiasm has been noted.

                      Meanwhile, NZ does what’s in its power to reduce harmful emissions and continue to apply pressure on others when & where appropriate to do the same – it’s called Realpolitik. If you wish to call this ‘virtue signalling’ then so be it. Nobody with even an ounce of integrity will be swayed by lazy labels thrown at them.

                      Tangible action to mitigate disaster vs. whining about others not pulling their weight and running off in a huff to sulk in a corner is like mature adults vs. whining 5-year olds. Adults look upward and forward and take responsibility as they see fit; 5-year olds play in their sandpits with other 5-year olds – the contrast is obvious.

                      PS I prefer talking with adults

                    • RedLogix

                      Exactly what are you referring to as a 'red herring'?

                      And are you arguing that somehow total global carbon does not matter? That somehow only the emissions from New Zealand are worth discussing?

                    • Incognito []

                      I’m not interested in chasing red herrings
                      No
                      No

                    • RedLogix

                      Well that leaves everyone floundering.

                    • Incognito []

                      No, I answered the two (leading) questions (and refused to be pulled into a wild red herring chase).

                      I cannot help it if this doesn’t satisfy you or leaves you floundering.

                      Have a nice day.

                    • RedLogix

                      Just why would acknowledging that total global carbon matters be so difficult for you?

                      Because in 2022 China built two new coal burning power plants per fucking week.

                      https://www.npr.org/2023/03/02/1160441919/china-is-building-six-times-more-new-coal-plants-than-other-countries-report-fin

                      Have a nice day.

                    • Liberty Belle

                      "Meanwhile, NZ does what’s in its power to reduce harmful emissions…"

                      Not to a degree that is even remotely significant in the context of climate change.

                      " and continue to apply pressure on others when & where appropriate to do the same"

                      Are you serious? NZ? Do you seriously believe that NZ engage in some kind of economic self flagellation will be even remotely interesting to China? To India? They laugh at us.

                    • Incognito []

                      You managed to sneak this one in while I prepared & activated your 10-day ban.

                      To quickly answer your questions:

                      Yes No No

                      Thanks for the diversion of red herrings – I have seen quite a few red herrings and strawmen lately, so it must be the season.

                  • LibertyBelle

                    The planned reduction in volumes for the NZU auctions are set out at
                    https://environment.govt.nz/what-government-is-doing/areas-of-work/climate-change/ets/nz-ets-market/setting-unit-limits-in-the-nz-ets/#coverage-of-the-overall-limit.

                    Are you arguing that unless that planned reduction in volume is incremented by a further 800,000 tonnes before the commissioning of the new furnace, that the 800,000 tonnes saved will just be picked up other emitters through the ETS?

    • UncookedSelachimorpha 1.2

      "Appreciated this morning that the funding for this came from the emissions fund ie from polluters not taxpayers. "

      This money is 100% public money, owned by all of us (including 'tax payers') that could have been used in any way in the public interest. Instead it is being handed to a private multinational that makes in excess of $1b per annum profit, while they emit vast pollution.

      We should regulate (or price pollution properly) and where the polluter's won't cooperate, nationalise or shut them down and spend the money on alternative industries. The already-wealthy should not be getting such gifts from the public purse.

  2. Gosman 2

    Please explain how this will impact our overall carbon budget given that this is driven by the ETS and freeing up carbon usage in one area of the economy will just drive the price of carbon credits down and mean others can use more of it?

  3. Gosman 3

    It seems to me people don't understand how the ETS works including our current Minister for Climate Change. That is disturbing. Unless these actions are accompanied by a reduction in the overall Carbon allowance that we have already agreed to this won't really impact our emissions profile at all.

    • mickysavage 3.1

      It is cutting 5% of emissions. It is being paid for by ETS contributions. If industries continue to want to pollute they will need to buy credits. And the price of credits will go up over time.

      • Gosman 3.1.1

        It doesn't alter our overall carbon budget. It just frees up 5% of the carbon usage to be used by other activities.

        • Incognito 3.1.1.1

          What ‘other activities’?

          • Gosman 3.1.1.1.1

            Whatever the ETS decides. That could be a coal burning thermal power plant if people buy enough carbon credits.

            • Incognito 3.1.1.1.1.1

              That’s an evasive answer and you’re making up things as you go.

              • Gosman

                You are asking me what someone buying carbon credits on NZ's ETS will choose to do with them. I don't know. How am I meant to work that out? Do you have an idea of what all the carbon credits are used for in NZ?

                • Incognito

                  Finally, some honesty! So, then why are you making these unsupported assertions if you don’t know what is going to happen on the ETS market?

            • mickysavage 3.1.1.1.1.2

              But they get more and more expensive. There is only a set amount of credits. They become more expensive as time goes by if industry does not significantly reduce CO2 output.

              • Gosman

                Yes and the Government has just provided a subsidy to free up 5% of the total to be used by another player or players in the economy rather than NZ Steel. Ultimately the owners of NZ Steel benefits twice because it gets 140 – 160 million (depending on any targets it meets) from the Government plus it doesn't need to purchase as many Carbon credits to carry out activities.

                • Ad

                  I think we just have to suck it up.

                  That's about as policy as it gets.

                  I don't think anyone understands the impact on the carbon price.

                  Minister Shaw says Treasury inputted all the way, together with I think it was KPMG; the business case will make for interesting reading.

                  There was more in the RNZ interview this morning between Guyon Espiner and Minister Shaw.

                  • Gosman

                    James Shaw avoided answering the question when it was put to him (TWICE!) by Guyon Espiner whether Treasury thought this was a wise use of Taxpayers money. That suggests they were not impressed with the business case. As for KPMG's involvement, they will produce a report that will tell you what you want to hear if you pay them enough.

                    • Ad

                      I'm happy to wait for the advice to be released.

                    • Incognito

                      Meanwhile, you’re flapping your wings in a dark echo chamber listening to your own shrieks believing they come from above.

  4. Tiger Mountain 4

    Look, I appreciate the “rah rah” factor, and the projected real world effects as Micky describes re emissions and steel production, but this is still Corporate Welfare laid bare. The boss class will not do anything much of their own volition unless there is a benefit to shareholders, or, they are forced to.

    NZ Steel has had much taxpayer support prior as well, they also have a high level of unionisation–up around 95% for non managerial staff which is pretty damn good. I noticed Mike Fuge Contact Energy, in some of the interview cycle, he was ex CEO at Marsden Pt. Refinery who left when NZ Refining were unwilling to develop a green energy division on site.

    If this Govt. were not so keen on the ailing “Partnership model” they would eject Rio Tinto forthwith and put the infrastructure in place to redirect that power to other users.
    And…time to restore power generation and supply to full public ownership. The retailers are having the country on.

    • Ad 4.1

      It's not too hard to argue that we need corporate welfare in the country because we are a small, narrow, remote, vulnerable, path-dependent economy and we can't do without some key local manufacturers.

      Even with the corporate welfare we still need to protect them from Chinese steel dumping.

  5. Jack 5

    The rich Tesla owners need to hold out for a bettter corporate welfare deal. They only get a 10% subsidy. Looks like 50% is the new corporate welfare rate.

    • Ad 5.1

      People who don't own Teslas are getting more government subsidy per person than we've seen in the last thirty years. Did you not read the budget?

  6. Incognito 6

    Luke Malpass over at Stuff:

    It also sets up a simple question for Labour to ask National: this is $140m to get rid of 800,000 tonnes of emissions in one fell swoop. How else are you going to do that?

    He also provides a good balance:

    Of course the previous National government was not immune from a bit of corporate welfare: film subsidies go straight from New Zealand taxpayers to attract global film companies. There was the deal with Sky City casino for a convention centre. And much besides.

    https://www.stuff.co.nz/national/politics/132104082/corporate-welfare-or-coinvestment-role-of-state-back-in-play-for-election

    In fact, his whole (long-ish) piece is worth a read.

    • newsense 6.1

      They don’t care about climate change so nothing they say about it has coherency.

      As well the looming $24 billion bill that could hit us if we do little seems a mite more than 100 million.

      But apparently National are good at this kind of thing…

    • Mike the Lefty 6.2

      That's right.

      When National pays a subsidy it is called "investment".

      When Labour pays a subsidy it is called "corporate welfare".

  7. RedLogix 7

    A welcome step in the right direction and well done to everyone who got this over the line.

    Now we just have to convince the rest of the world to follow suit; because carbon atoms do not have a little label on them saying "Made in New Zealand".

    • Gosman 7.1

      This makes little to no difference to NZ's carbon budget. This just allows other users of carbon to get access to use it at a cheaper rate.

      • roy cartland 7.1.1

        I think this is a worthwhile point, if accurate. Have you got any more insight into this Gos?

        It's like those little aerolon things on the end of plane wings. They don't reduce pollution; they just increase fuel efficiency, causing cheaper and hence more flights.

        • RedLogix 7.1.1.1

          Yup. That's an example of Jevon's Paradox.

          While any engineer is going to chase improved efficiency, there in any given system there is a limit to how much this can be improved. Basic thermodynamics enforces this. We will always consume energy, and at some fundamental level our ability to control our environment, to generate human development, requires that we consume energy. No amount of magical thinking can avoid this.

          Or as MS says in the OP – we need steel. Or any of the myriad other materials and processes that make modernity possible.

          We will continue to use energy, and when you account for the energy requirement of the developing world, we need a LOT more of it, no matter how efficient we become. The only option that works is to decarbonise that energy supply.

          • roy cartland 7.1.1.1.1

            So does that mean, as Gosman is implying, that the coal-use saved, will just be used somewhere else? Since we have that budget, we'll just use it up?

            If so, then reduction is a red herring, it should be total cessation, right?

            • RedLogix 7.1.1.1.1.1

              More or less yes.

              But total cessation of what?

              • roy cartland

                Of coal use.

                I guess that even if it doesn't actually change emissions, it is proof of concept for when coal use is ceased.

                • RedLogix

                  Yes. The entire climate change debate hinges around whether the developing world chooses coal or nuclear to power it's future. That is pretty much all that matters – everything else is a nice to have.

                • Gosman

                  The ETS sets the limit that NZ has for carbon usage. The Government sets that limit based on the international agreements it signs up to and has committed to achieving. That is unaffected by this agreement.

                  • Incognito

                    That is unaffected by this agreement.

                    Duh!

                    It is a big step towards meeting the targets in the agreements.

                    • Gosman

                      The ETS is set up to meet the targets in those agreements. If the targets are not met for the country then the government (or other parties) have to purchase more carbon credits from international sources.

                    • Incognito []

                      So, we as a consuming & producing country must meet the targets. If/when NZ Steel meets its target of becoming carbon neutral it can auction off its surplus NZUs. We, incl. NZ Steel, are a long way of meeting our targets.

                      Are you a Climate Change denier, by any chance? You sure act like one.

                    • Gosman

                      I am extolling the virtues of the ETS so how does that make me a Climate change denier?

                    • Incognito []

                      I cannot fathom your stubborn denial of a real reduction, yearly, of 800,000 tonnes of emissions into the atmosphere. It does sound like CC denier lunacy. However, if you have another/better explanation for your wilful pig-headed ignorance then be my guest.

                      You seem to have little grasp of the ETS.

      • Incognito 7.1.2

        How do you work this?

        The price of NZUs is based on supply and demand (https://www.climatecommission.govt.nz/get-involved/new-content-page/what-is-the-nz-ets/). The supply of NZUs is limited and will drop over time in line with NZ’s emissions reduction targets. The demand for NZUs depends on the level of emissions from different sectors.

        It doesn’t necessarily mean that NZ Steel will sell their NZUs to other emitters, as they may choose to hold onto them for future use instead of trading them on the domestic market (https://www.canopy.govt.nz/market-forest/carbon-credit-market/).

        The deal with NZ Steel will also increase the demand for electricity, which may increase the emissions from the electricity sector if it is not generated from renewable sources. This in turn may increase the demand for NZUs from the electricity sector to offset their emissions.

        The overall impact of all industry sectors on the NZ ETS market will depend on how much they reduce emissions, how much they increase electricity demand, and how they manage their NZUs.

        Instead of asking your inane questions and making unsupported assertions, why don’t you bring something constructive and tangible to the discussion?

        • mickysavage 7.1.2.1

          Second that.

          Asserting the deal has no effect when clearly it will reduce greenhouse gas emissions by 5% makes absolutely no sense.

          • Incognito 7.1.2.1.1

            Thanks.

            I think Gossie is conflating NZU price with how much crap is blown into the atmosphere. The former is an artificial construct to reduce the latter and only the latter matters (but not to Gossie, for whom only the former seems to matter or matter most).

          • Gosman 7.1.2.1.2

            It won't reduce NET GHG emissions in NZ at all. It frees up 5% of our allocation to be used elsewhere. If you want to reduce our NET emissions (the actual figure that matters after all) then the target for the ETS needs to be reduced.

            • Incognito 7.1.2.1.2.1

              OMG! You’re exasperating!

              5% of the yearly reduction of emissions (i.e. the target) means we have to achieve another 95%, every year. In effect, you’re arguing not to reduce emissions because it will get us closer to the target! Let’s not pay off the mortgage because if we reduce the principal to zero we have no mortgage to pay off anymore! Woe is me!

              • Gosman

                The target is not moving. All that is moving is one of the major emitters won't need to buy carbon credits to enable it to carry out their activity. Those carbon credits are still available though.

                • Incognito

                  The target is not moving.

                  Correct, it is set (for now). The NZ Steel deal means we move closer to the target.

                  All that is moving is one of the major emitters won't need to buy carbon credits to enable it to carry out their activity.

                  NZ Steel may be moving closer to its target or continue paying for NZUs. This is their decision based on their reasons/reasoning. It has been suggested that without this deal they could have (would have?) ceased their NZ-based activities.

                  Those carbon credits are still available though.

                  To whom? NZ Steel can use them as they see fit. As a nation, we may have to buy fewer credits on the international market.

  8. Incognito 8

    Rod Oram over at Newsroom:

    And BlueScope and NZ Steel will continue to investigate the use of hydrogen and natural gas processors for reducing ironsands to produce iron then steel. This is the main pathway to decarbonisation that the steel industry is pursuing worldwide. If it turns out to be feasible, commercial deployment is at least decade away, he added.

    https://www.newsroom.co.nz/govt-offers-nz-steel-30m-more-in-performance-bonuses-for-bigger-faster-emissions-cuts

    • RedLogix 8.1

      Agreed. Direct hydrogen conversion is the path forward for steel. A lot of work is going on in Australia to produce enough clean hydrogen to support this.

      • adam 8.1.1

        CSIRO was doing a lot of that research in Queensland, didn't they come up golden on production and other supply chain issues?

  9. Mike the Lefty 9

    What would National do?

    That's easy.

    Nothing.

    That's what National does best.

  10. Ad 10

    This is a really interesting signal to Rio Tinto.

    If Labour can do this for NZSteel which is about 1% of our entire economy's GDP, can it also generate the same kind of deal for Rio Tinto's Tiwai Soutland plant to get something like $140 million to accelerate their conversion to hydrogen to power a smelter furnace?

    Maybe it's because Rio Tinto have turned themselves into a pariah by screwing us for so long, playing us for many years that they will leave when they then don't, and leaving their poisonous crap everywhere.

    I would not put it past Parker to hold the line against Rio Tinto Southland while Woods did the deal with NZSteel, just to make the FUCK YOU point nice and obvious.

  11. Stuart Munro 11

    Do we really have enough hydro power for NZSteel? If not, coal at NZSteel will be substantially less carbon emitting than coal at Huntly to create the required electricity.

    I expect domestic electricity consumers will pay the price yet again.

    As for conversion to hydrogen, heavens forfend! https://www.sierraclub.org/articles/2022/01/hydrogen-future-clean-energy-or-false-solution#:~:text=Hydrogen%20is%20an%20inefficient%20use%20of%20clean%20electricity&text=Using%20renewables%20to%20produce%20hydrogen,when%20direct%20use%20is%20feasible.

  12. Thinker 12

    Been scanning all of Gosman's contributions and couldn't decide which one to hook my response to, so decided to add it at the bottom.

    I'm neither a physicist, a chemist, nor and accountant, so my knowledge of the carbon credit system is limited. I don't know whether there are smoke and mirrors here, or not.

    But, I like to try to find simplified comparisons to help me understand complex things. I'm comparing this one-off, massive deal to the EV subsidy that the government is giving on electrified vehicles. Seems to me to work the same way and (Gosman) the EV subsidy seems to be open to the same kind of criticism you're making about NZ Steel – just grossly smaller.

    So, what will help me sleep at night is the fact that, while not every country has an NZ Steel, many are doing EV subsidies. So, I'm assuming the concept must be ok and I think maybe some of us are being overwhelmed by the big numbers.

    • Gosman 12.1

      You are correct this is similar to the EV subsidy which is itself a waste of time and money and does not reduce our NET GHG emissions one iota..

      • Incognito 12.1.1

        800,000 tonnes only exist in an Excel spreadsheet, they are not real. NZ Steel is not real. Nothing is real. Nothing we do is real. Where is my blue pill?

  13. bwaghorn 13

    """The government says the project means 800,000 tonnes of pollution can be removed from the atmosphere each year –

    Surely this is worded wrong.

    Not releasing 800,000 tonnes is different from removing 800,000 tonnes??

  14. bwaghorn 14

    I just a bit vague on it, can you(any one) confirm that the GIDI fund is holey funded by a tax on carbon? And is that fund completely separate from the ets?

  15. barry 15

    It is a good thing, that NZ steel will be able to compete with overseas producers with a lower carbon footprint BUT…

    In practice it means that we are recycling steel here instead of sending it overseas for recycling. It reduces NZ emissions, but not worldwide emissions.

  16. FAB mouse 16

    Some farmers who don't won't to be forced to pay for some (or all or any) of the greenhouse gas emissions from agriculture must be getting very angry with right wing politicians who don't won't businesses to be helped by government. They are currently getting help from government to avoid paying their share of NZ's emissions…

    Where does "Corporate welfare" start and end? Some farms make a lot of money. Maybe not as much as NZ Steel but still…

  17. adam 17

    My goodness Mickey, did you have to put a pix of scomo up? You almost made me melt my pc monitor with the rage that erupted from my mouth. Took me a while to calm down.

    That Tory train wreak, has stuffed up more lives than any other PM in Australian history – a Litany of suicides. The extension of drug cartels across the pacific with his 501 laws. And as you so keenly point out, a public disaster on environmental issues with a massive expansion in oil and coal exploration.

    The man is the personification of Mammon in the 21st century.

  18. Incognito 18

    Climate Change Commissioner Rod Carr is obviously not smoking the right stuff.

    https://www.rnz.co.nz/national/programmes/ninetonoon/audio/2018887709/climate-commissioner-current-pathway-will-not-get-us-there [3 weeks before Budget-2023]

  19. Incognito 19

    Tom Pullar-Strecker over @ Stuff has a say on the deal with NZ Steel.

    The deal between the Government and NZ Steel should lower global emissions even only if for that reason, but the biggest effect may be to put a smaller proportion of global carbon emissions on the New Zealand ledger.

    […]

    It is conceivable that if it doesn’t receive the government grant it might just shut up shop.

    […]

    Would NZ Steel have joined them, or closed the plant, without the promised grant?

    Who other than NZ Steel’s Australian owners, Bluescope, could know for sure?

    I think it is a fair and balanced piece.

    https://www.stuff.co.nz/business/132108154/the-real-deal-on-nz-steel-climate-change-win-or-corporate-welfare

    • Ad 19.1

      If I get the energy I'll do a piece on some of the ways government directly alters and forms deals with private business.

      This scale of state 'intervention' isn't something we see very often, but of necessity it happens to many leading NZ corporates.

      • Incognito 19.1.1

        That would be great.

        I have a Post 95% finished on Tax cuts vs. universal social welfare but a long power cut on Saturday threw a spanner in the works. It can wait a little longer.

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  • EV road user charges bill passes
    Transport Minister Simeon Brown has welcomed the passing of legislation to move light electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) into the road user charges system from 1 April.  “It was always intended that EVs and PHEVs would be exempt from road user charges until they reached two ...
    BeehiveBy beehive.govt.nz
    15 hours ago
  • Bill targets illegal, unregulated fishing in international waters
    New Zealand is strengthening its ability to combat illegal fishing outside its domestic waters and beef up regulation for its own commercial fishers in international waters through a Bill which had its first reading in Parliament today. The Fisheries (International Fishing and Other Matters) Amendment Bill 2023 sets out stronger ...
    BeehiveBy beehive.govt.nz
    16 hours ago
  • Reserve Bank appointments
    Economists Carl Hansen and Professor Prasanna Gai have been appointed to the Reserve Bank Monetary Policy Committee, Finance Minister Nicola Willis announced today. The Monetary Policy Committee (MPC) is the independent decision-making body that sets the Official Cash Rate which determines interest rates.  Carl Hansen, the executive director of Capital ...
    BeehiveBy beehive.govt.nz
    17 hours ago
  • Stronger protections for apartment owners
    Apartment owners and buyers will soon have greater protections as further changes to the law on unit titles come into effect, Housing Minister Chris Bishop says. “The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Act had already introduced some changes in December 2022 and May 2023, and ...
    BeehiveBy beehive.govt.nz
    19 hours ago
  • Travel focused on traditional partners and Middle East
    Foreign Minister Winston Peters will travel to Egypt and Europe from this weekend.    “This travel will focus on a range of New Zealand’s traditional diplomatic and security partnerships while enabling broad engagement on the urgent situation in Gaza,” Mr Peters says.   Mr Peters will attend the NATO Foreign ...
    BeehiveBy beehive.govt.nz
    19 hours ago
  • Keep safe on our roads this Easter
    Transport Minister Simeon Brown is encouraging all road users to stay safe, plan their journeys ahead of time, and be patient with other drivers while travelling around this Easter long weekend. “Road safety is a responsibility we all share, and with increased traffic on our roads expected this Easter we ...
    BeehiveBy beehive.govt.nz
    22 hours ago
  • Cost of living support for over 1.4 million Kiwis
    About 1.4 million New Zealanders will receive cost of living relief through increased government assistance from April 1 909,000 pensioners get a boost to Superannuation, including 5000 veterans 371,000 working-age beneficiaries will get higher payments 45,000 students will see an increase in their allowance Over a quarter of New Zealanders ...
    BeehiveBy beehive.govt.nz
    22 hours ago
  • Tenancy reviews for social housing restart
    Ensuring social housing is being provided to those with the greatest needs is front of mind as the Government restarts social housing tenancy reviews, Associate Housing Minister Tama Potaka says. “Our relentless focus on building a strong economy is to ensure we can deliver better public services such as social ...
    BeehiveBy beehive.govt.nz
    22 hours ago
  • Kermadec Ocean Sanctuary plan halted
    The Kermadec Ocean Sanctuary will not go ahead, with Cabinet deciding to stop work on the proposed reserve and remove the Bill that would have established it from Parliament’s order paper. “The Kermadec Ocean Sanctuary Bill would have created a 620,000 sq km economic no-go zone,” Oceans and Fisheries Minister ...
    BeehiveBy beehive.govt.nz
    23 hours ago
  • Cutting all that dam red tape
    Dam safety regulations are being amended so that smaller dams won’t be subject to excessive compliance costs, Minister for Building and Construction Chris Penk says. “The coalition Government is focused on reducing costs and removing unnecessary red tape so we can get the economy back on track.  “Dam safety regulations ...
    BeehiveBy beehive.govt.nz
    23 hours ago
  • Drought support extended to parts of North Island
    The coalition Government is expanding the medium-scale adverse event classification to parts of the North Island as dry weather conditions persist, Agriculture Minister Todd McClay announced today. “I have made the decision to expand the medium-scale adverse event classification already in place for parts of the South Island to also cover the ...
    BeehiveBy beehive.govt.nz
    1 day ago
  • Passage of major tax bill welcomed
    The passing of legislation giving effect to coalition Government tax commitments has been welcomed by Finance Minister Nicola Willis.  “The Taxation (Annual Rates for 2023–24, Multinational Tax, and Remedial Matters) Bill will help place New Zealand on a more secure economic footing, improve outcomes for New Zealanders, and make our tax system ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Lifting economy through science, tertiary sectors
    Science, Innovation and Technology Minister Judith Collins and Tertiary Education and Skills Minister Penny Simmonds today announced plans to transform our science and university sectors to boost the economy. Two advisory groups, chaired by Professor Sir Peter Gluckman, will advise the Government on how these sectors can play a greater ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government announces Budget priorities
    The Budget will deliver urgently-needed tax relief to hard-working New Zealanders while putting the government’s finances back on a sustainable track, Finance Minister Nicola Willis says.  The Finance Minister made the comments at the release of the Budget Policy Statement setting out the Government’s Budget objectives. “The coalition Government intends ...
    BeehiveBy beehive.govt.nz
    2 days ago
  • Government to consider accommodation solution
    The coalition Government will look at options to address a zoning issue that limits how much financial support Queenstown residents can get for accommodation. Cabinet has agreed on a response to the Petitions Committee, which had recommended the geographic information MSD uses to determine how much accommodation supplement can be ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Government approves extension to Royal Commission of Inquiry into Abuse in Care
    Cabinet has agreed to a short extension to the final reporting timeframe for the Royal Commission into Abuse in Care from 28 March 2024 to 26 June 2024, Internal Affairs Minister Brooke van Velden says.                                         “The Royal Commission wrote to me on 16 February 2024, requesting that I consider an ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • $18m boost for Kiwis travelling to health treatment
    The coalition Government is delivering an $18 million boost to New Zealanders needing to travel for specialist health treatment, Health Minister Dr Shane Reti says.   “These changes are long overdue – the National Travel Assistance (NTA) scheme saw its last increase to mileage and accommodation rates way back in 2009.  ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • PM’s Prizes for Space to showcase sector’s talent
    The Government is recognising the innovative and rising talent in New Zealand’s growing space sector, with the Prime Minister and Space Minister Judith Collins announcing the new Prime Minister’s Prizes for Space today. “New Zealand has a growing reputation as a high-value partner for space missions and research. I am ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Concerns conveyed to China over cyber activity
    Foreign Minister Winston Peters has confirmed New Zealand’s concerns about cyber activity have been conveyed directly to the Chinese Government.     “The Prime Minister and Minister Collins have expressed concerns today about malicious cyber activity, attributed to groups sponsored by the Chinese Government, targeting democratic institutions in both New ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Independent Reviewers appointed for School Property Inquiry
    Independent Reviewers appointed for School Property Inquiry Education Minister Erica Stanford today announced the appointment of three independent reviewers to lead the Ministerial Inquiry into the Ministry of Education’s School Property Function.  The Inquiry will be led by former Minister of Foreign Affairs Murray McCully. “There is a clear need ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Brynderwyns open for Easter
    State Highway 1 across the Brynderwyns will be open for Easter weekend, with work currently underway to ensure the resilience of this critical route being paused for Easter Weekend to allow holiday makers to travel north, Transport Minister Simeon Brown says. “Today I visited the Brynderwyn Hills construction site, where ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Speech to the Infrastructure Funding & Financing Conference
    Introduction Good morning to you all, and thanks for having me bright and early today. I am absolutely delighted to be the Minister for Infrastructure alongside the Minister of Housing and Resource Management Reform. I know the Prime Minister sees the three roles as closely connected and he wants me ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • Parliamentary network breached by the PRC
    New Zealand stands with the United Kingdom in its condemnation of People’s Republic of China (PRC) state-backed malicious cyber activity impacting its Electoral Commission and targeting Members of the UK Parliament. “The use of cyber-enabled espionage operations to interfere with democratic institutions and processes anywhere is unacceptable,” Minister Responsible for ...
    BeehiveBy beehive.govt.nz
    3 days ago
  • NZ to provide support for Solomon Islands election
    Foreign Minister Winston Peters and Defence Minister Judith Collins today announced New Zealand will provide logistics support for the upcoming Solomon Islands election. “We’re sending a team of New Zealand Defence Force personnel and two NH90 helicopters to provide logistics support for the election on 17 April, at the request ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • NZ-EU FTA gains Royal Assent for 1 May entry to force
    The European Union Free Trade Agreement Legislation Amendment Bill received Royal Assent today, completing the process for New Zealand’s ratification of its free trade agreement with the European Union.    “I am pleased to announce that today, in a small ceremony at the Beehive, New Zealand notified the European Union ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • COVID-19 inquiry attracts 11,000 submissions
    Public consultation on the terms of reference for the Royal Commission into COVID-19 Lessons has concluded, Internal Affairs Minister Hon Brooke van Velden says.  “I have been advised that there were over 11,000 submissions made through the Royal Commission’s online consultation portal.” Expanding the scope of the Royal Commission of ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Families to receive up to $75 a week help with ECE fees
    Hardworking families are set to benefit from a new credit to help them meet their early childcare education (ECE) costs, Finance Minister Nicola Willis says. From 1 July, parents and caregivers of young children will be supported to manage the rising cost of living with a partial reimbursement of their ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Unlocking a sustainable, low-emissions future
    A specialised Independent Technical Advisory Group (ITAG) tasked with preparing and publishing independent non-binding advice on the design of a "green" (sustainable finance) taxonomy rulebook is being established, Climate Change Minister Simon Watts says.  “Comprising experts and market participants, the ITAG's primary goal is to deliver comprehensive recommendations to the ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Chief of Army thanked for his service
    Defence Minister Judith Collins has thanked the Chief of Army, Major General John Boswell, DSD, for his service as he leaves the Army after 40 years. “I would like to thank Major General Boswell for his contribution to the Army and the wider New Zealand Defence Force, undertaking many different ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Minister to meet Australian counterparts and Manufacturing Industry Leaders
    25 March 2024 Minister to meet Australian counterparts and Manufacturing Industry Leaders Small Business, Manufacturing, Commerce and Consumer Affairs Minister Andrew Bayly will travel to Australia for a series of bi-lateral meetings and manufacturing visits. During the visit, Minister Bayly will meet with his Australian counterparts, Senator Tim Ayres, Ed ...
    BeehiveBy beehive.govt.nz
    4 days ago
  • Government commits nearly $3 million for period products in schools
    Government commits almost $3 million for period products in schools The Coalition Government has committed $2.9 million to ensure intermediate and secondary schools continue providing period products to those who need them, Minister of Education Erica Stanford announced today. “This is an issue of dignity and ensuring young women don’t ...
    BeehiveBy beehive.govt.nz
    5 days ago
  • Speech – Making it easier to build.
    Good morning, it’s great to be here.   First, I would like to acknowledge the New Zealand Institute of Building Surveyors and thank you for the opportunity to be here this morning.  I would like to use this opportunity to outline the Government’s ambitious plan and what we hope to ...
    BeehiveBy beehive.govt.nz
    6 days ago
  • Pacific youth to shine from boost to Polyfest
    Minister for Pacific Peoples Dr Shane Reti has announced the Government’s commitment to the Auckland Secondary Schools Māori and Pacific Islands Cultural Festival, more commonly known as Polyfest. “The Ministry for Pacific Peoples is a longtime supporter of Polyfest and, as it celebrates 49 years in 2024, I’m proud to ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • 2024 Ngarimu VC and 28th (Māori) Battalion Memorial Scholarships announced
    ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Speech to Breast Cancer Foundation – Insights Conference
    Before moving onto the substance of today’s address, I want to recognise the very significant and ongoing contribution the Breast Cancer Foundation makes to support the lives of New Zealand women and their families living with breast cancer. I very much enjoy working with you. I also want to recognise ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Kiwi research soars to International Space Station
    New Zealand has notched up a first with the launch of University of Canterbury research to the International Space Station, Science, Innovation and Technology and Space Minister Judith Collins says. The hardware, developed by Dr Sarah Kessans, is designed to operate autonomously in orbit, allowing scientists on Earth to study ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Speech to the New Zealand Planning Institute
    Introduction Thank you for inviting me to speak with you today and I’m sorry I can’t be there in person. Yesterday I started in Wellington for Breakfast TV, spoke to a property conference in Auckland, and finished the day speaking to local government in Christchurch, so it would have been ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Support for Northland emergency response centre
    The Coalition Government is contributing more than $1 million to support the establishment of an emergency multi-agency coordination centre in Northland. Emergency Management and Recovery Minister Mark Mitchell announced the contribution today during a visit of the Whangārei site where the facility will be constructed.  “Northland has faced a number ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Celebrating 20 years of Whakaata Māori
    New Zealanders have enjoyed a broader range of voices telling the story of Aotearoa thanks to the creation of Whakaata Māori 20 years ago, says Māori Development Minister Tama Potaka. The minister spoke at a celebration marking the national indigenous media organisation’s 20th anniversary at their studio in Auckland on ...
    BeehiveBy beehive.govt.nz
    7 days ago
  • Some commercial fishery catch limits increased
    Commercial catch limits for some fisheries have been increased following a review showing stocks are healthy and abundant, Ocean and Fisheries Minister Shane Jones says. The changes, along with some other catch limit changes and management settings, begin coming into effect from 1 April 2024. "Regular biannual reviews of fish ...
    BeehiveBy beehive.govt.nz
    7 days ago

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