A decision at tomorrow’s shareholders meeting meaning New Zealand’s capability to refine oil will be shut down and Refining New Zealand then becoming an importer of pre-refined fuel would be a serious strategic mistake.
Such a move would put New Zealand at the mercy of international oil powers or geo-political events and remove completely our ability to source oil from multiple sources across the world, or within New Zealand should it become necessary to seek alternative sources.
The refinery produces very high quality aviation fuel, prized by international airlines, and can handle the cheapest, lowest quality crude oil feedstock due to its advanced hydro cracker process.
The oil company shareholders dominating the share register who are pushing for the refinery to close are doing so because they can make more profit from their overseas refineries where wages and other costs are cheaper.
Their interests do not align with New Zealand’s interests, so the government should classify the refinery as a strategic asset and step in and compulsorily purchase the necessary shares to turn it into an SOE.
It could do that very easily and without cost to taxpayers, by using the same money creation process the Reserve Bank has been using to buy government bonds off rich investors, banks and speculators.
Returning the refinery to New Zealand ownership would reverse the privatisation of it undertaken by Labour in the 1980’s, and should be the start of more strategic assets being bought back – a process that would be undertaken by a Social Credit government.
New Zealand owning the refinery would retain the expertise of the existing staff, contractors and support businesses, keep that employment and income in Northland, and ensure a greater level of fuel security.
The refinery could even be run as a zero profit enterprise which would bring fuel costs down for New Zealand motorists, the transport industry, and roading contractors who use bitumen the refinery used to produce.
Cutting transport costs would help keep the price of goods in the shops down as lower transport costs should flow into lower wholesale and retail prices.
While a move to alternative fuels like hydrogen and ethanol are important, with the government as shareholder the refinery could still continue to develop those options in an effort to move New Zealand towards a more self-sufficient energy position.
Particularly like the closing paragraph and what it implies. A strategic asset, owned by the people, developing technology for alternative fuel use not because it may make a profit, but because we NEED to do this.
ACT represent banks and overseas corporations.
National represent sociopaths and neanderthals.
Labour represent selfish bourgeoisie.
Greens represent a range of screaming self-absorbed personality disorders.
NZFirst represent Winston.
Maori represent cowboy hats and Iwi elites.
For this voter, Social Credit suggests BOTH the nation building ideas that should have started yesterday, and the means to fund them WITHOUT enriching assorted parasites & leeches. It’s no contest.
Certainly seems that way Jase.
We haven’t learnt anything from the Covid experience.
Totally correct Jase.
The infuriating thing is that Social Credit is NOT experimental. It works.
Most recently the provincial government of British Columbia( Canada) successfully used it.
The only reason I can see for politicians not adopting it is because their bosses( bankers) do not want it. It means a more equal society which could mean the end of wealthy elites who can waste their money on flights into outer space( not so bad if they stayed there).
It could even lead to (gasp) politicans acting in the public interest.
I would be interested in finding details of BC’s use of Social Credit’s ideas. Would it be possible to provide a link.
Well written and a sensible response to another disaster being implemented by the Social Democrats.
” The oil company shareholders dominating the share register who are pushing for the refinery to close are doing so because they can make more profit from their overseas refineries where wages and other costs are cheaper ”
This another reason why strategic assets should not be run by the private sector because they will never think about the serious repercussion’s of this type of decision because they are only interested in enriching themselves at the expense of the many.
I am seriously considering a vote for Socred at the next general election and after reading their policies they are the closest party we have that promotes a sensible approach to our current rich man takes all economy.
The only hope is that Ampol will buy the inept Z Energy(15% owned buy the Superfund) ACC and the Superfund own a fifth of the Refinery.It is entirely possible Ampol will buy a controlling share in the refining operation and stop this madness. Only hydrocracker in this part of the world. A very well run refinery from the point of view of the skilled workers. And despite the negative press it is actually in good running order.Ir is also currently making a 20 million dollar a month profit. The clean up will cost a minimum of 3 times more than the Company has budgeted for and and the whole thing sits on Iwi owned land. Meaghan Woods is a useless Energy minister and completely out of her depth in this portfolio .The impact on Northland’s economy will be disastrous and Labour do not give a fuck. At a recent meeting with Shaw and Woods the Union had to educate Shaw(Green) that NZ will still be accountable for the carbon emissions of the imported fuel from refineries far dirtier than Marsden Point. Also much imported fuel is not suitable for the NZ market and has to be shipped back. We are looking at more expensive fuel unreliable supply and a very depressed Northland economy. Labour is full of shit on this so is Refining NZ.
Another strategic asset bites the dust at the hands of profit takers.
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