With conflict in the Middle East creating massive global oil supply disruption, the Green Party is calling for National Party support to pass a fossil fuel crisis relief package including free public transport and a windfall profits tax to prevent corporations from price gouging.
The Green Party’s proposed package also includes a relief payment for low income people or people who live rurally to help meet extra transport costs, reversing changes to school bus eligibility and routes, plus a temporary expansion of eligibility for school buses.
The party said free public transport for three months would cost approximately $143.5 million.
The Green Party also wants a reversal of the Government’s intended reduction in Total Mobility Support for disabled people and an increase in mileage rates for care and support workers to meet their travel costs.
On Monday, the Greens said it would be offering its votes to the National Party to pass this “sensible and urgent” package - and with their combined votes, no other political party’s support is necessary.
Officials are already looking into targeted support through the tax and transfer system, with Prime Minister Christopher Luxon and Finance Minister Nicola Willis giving an update last Thursday on the economic impacts due to conflict in the Middle East.
Luxon said things could get worse before they actually get better. “Hope is not a plan.”
Willis said they were looking at not only a conflict that could be prolonged, but also supply chain impacts felt beyond the end of the conflict.
A potential temporary and targeted measure is being worked on by the Inland Revenue Department and Treasury. There was also consultation with the fuel industry led by Willis, and the domestic response via the National Fuel Plan, which was developed mid-2024.
“We agree with the Prime Minister that hope is not a plan," Green Party co-leader Chlöe Swarbrick said.
“That's why the Green Party is presenting our plan to support our country through the fossil fuel crisis, targeting support to those who need it most, and reducing demand for petrol.”
New Zealanders expect politicians to do everything they can to support people through this crisis and to minimise future vulnerability “by reducing fossil fuel dependence”, Swarbrick said.
The Green Party has written to Luxon and Willis, offering their votes to make “these obvious solutions a reality, urgently”, she said.
“Free public transport is a no-brainer. We remove the barriers to access, reduce congestion, and free up fuel supply for those who don’t have a public transport option.”
Swarbrick also said it was the time to “pull the plug on exorbitantly expensive, low-value projects like the Roads of National Significance and the planned LNG (liquefied natural gas) import facility”.
Green Party co-leader Marama Davidson said the party’s relief payment proposal would be targeted at adults earning under the median income and people living rurally where public transport isn’t available.
"The fossil fuel crisis relief payment will put money in the pockets of those being squeezed the hardest and those with few other transport options, easing stretched household budgets right now."
And as for the Greens’ proposed windfall tax, Davidson said petrol companies should not be unreasonably profiting from this or any economic crisis.
"A windfall tax would mean any exorbitant profits are redirected to our communities,” she said.
Treasury describes a windfall tax as a temporary or one-off tax on unexpected gains earned by a select of group of businesses due to factors outside of their control.
Germany is considering a windfall tax. The rising fuel prices has led Germany to consider a fuel price cap, discounts or a windfall tax but they must be weighed against cost and benefits, Germany's Economic Affairs and Energy Minister Katherina Reiche said in a DW report.
Davidson said: "We need to ensure that corporations aren’t profiting while people in our communities who are struggling or have no alternative transport options pay the price."
"The Green's package will provide immediate help for those who need it, reduce demand for petrol, and keep a check on corporate greed.”
17 Comments
There is no such thing as "free public transport"
It's just a discussion on who pays.
Same with healthcare, education, superannuation, etc too. And roads: just the interest bill for the motorway to Whangarei would probably cover free public transport forever...
I've got no issue supporting means to get people to shift towards public transport, but free is a bit of a stretch for adults. One thing the previous govt did well was the free public transport for kids and teens as they're far easier to get to adopt this method of transports vs adults fixed in their ways.
Free for kids would only be fair, especially given that it's free for 65+
I think two-thirds of the cost of public transport is already covered by state or ratepayer subsidies, with fares covering one-third. If we're serious about cutting fossil-fuel use and spending less on ever-widening motorways, fare-free public transport seems a no-brainer.
Trains in particular have a huge capital overhead cost that is not factored into the fares. Fares recover around 50% of operating costs only. Not maintenance, renewals, rolling stock, stations, hop overhead cost, CRL, electric gantries etc. if included then fares only recover 10% max. There's a good argument to make train fares free to maximise passengers, and therefore benefits from all of the infrastructure that's been invested in. It's been looked at and the response is incoherent, such as talking about about much people value a free service and possibly safety issues from rif raff. It should be looked at again.
"There's a good argument to make train fares free to maximise passengers, and therefore benefits from all of the infrastructure that's been invested in."
That's not a good argument: The Sunk Cost Fallacy - The Decision Lab
Exhibit A: The Cost of Te Huia Train - CityWatchNZ
We could also charge fees for primary schools. Result would be that attendance would drop off markedly, it would be bad for lots of societal outcomes, and we'd still have to maintain the schools anyway. It's basically free so we can maximise the benefits.
Also BTW, just saying "sunk cost fallacy" isn't a strong argument.
If we are going to make public transport (use) free then we should at least own it.
https://www.rnz.co.nz/news/in-depth/487427/should-offshore-private-equi…
Chloe on ZB news this morning sounded kinda pit bullish about the proposal. Disappointing because her ability to speak reasonably measuredly is a strength. But guess if you are aiming to bust through the coalition government you need to come across a bit tough?
I've never seen any policy or solutions from the Greens that doesn't more taxes of some sort.
free up fuel supply for those who don’t have a public transport option. Bless, Chloe is concern face about fuel supply six year too late.
"The change of the Marsden Point facility to a fuels terminal would have a significant impact of New Zealand's fuel security including:
◼ A reduction in physical inventories (expected to be 25-30%) that ultimately is likely to impact New Zealand's supply security;
◼ Loss of ability to process New Zealand crude in a major supply emergency (global meltdown or pandemic where New Zealand might be isolated for a time).
https://www.mbie.govt.nz/dmsdocument/15260-refining-nz-impact-of-conver…
Free public transport - I totally agree it is never free. Anyone been to Brisbane lately??
Flat rate charge of 50cents. Thats the river cruise one way then the next - around 3 hours for 50cents if you stay on the boat. Get off and have a beer and back on again for 50 cents.
Surely $1 could be palatable??
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