Driving efficiency

by frog

The NACT government has justified much of its agenda with the catch cry ‘streamlining and efficiency.’

It’s the falsehood under cover of which they plan to gut environmental laws through changes to the RMA, for example.  And its part of the rationale they gave for bringing the ETS to a grinding halt.

But in what universe does the Government’s bio-fuels position seem efficient?

To recap: in December NACT eliminated the incentive to use bio-fuels.  Gerry Brownlee said the Government opposed mandatory sales obligations, instead they wanted the efficiency of the free market:

It will mean consumers have a free choice and certainty for the future. Fuel suppliers will make decisions to supply biofuels based on commercial, environmental and marketing considerations.

The decision crippled some Kiwi businesses. And now, here we are today announcing a new grants program for bio-fuels.  Yes, we now have $12 million a year because:

By supporting biodiesel production in New Zealand, we can help get a new industry up and running, which can provide jobs for New Zealanders, at the same time as helping to reduce their greenhouse gas emissions

Ok, so one more time:, in December we had businesses ready to scale up bio-fuels production.  The Government pulled the rug out from under them and now in May rather than fostering a market, it is going to give them cash to get back on their feet.

How is this efficient?  How is this choice of a subsidy a ‘free choice’ for consumers?  How do we pretend fuel suppliers will make commercially based decisions under this scheme?

The most efficient part of Government is the NACT spin machine.

frog says

Published in Economy, Work, & Welfare by frog on Tue, May 19th, 2009   

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