BusinessNZ says banning new petroleum and gas exploration will have significant implications for New Zealand business.

BusinessNZ Chief Executive Kirk Hope said the Government’s decision to continue to recognise existing permits was important, as doing otherwise would have had a potentially devastating effect on investment into New Zealand.

“It will be important to see what Government commitment is being made to affected businesses, and how quickly other high value businesses can be developed to fill the void.

“Many businesses will be affected by this ban, particularly those using gas. It will likely mean higher gas prices because of the restriction in supply, raising costs for enterprises that use gas for their operations.

“Exporters such as Fonterra, NZ Steel, Methanex and Refining NZ may find their products less competitive in world markets.

“It is concerning that the ban has been imposed without any consultation with industry.

“For the longer term, this decision may raise doubts among investors as to the viability of investing in New Zealand business. If a multi-billion dollar energy industry can be banned, what other industries might face the same fate?

“Confidence among both overseas and domestic investors may be the longer-term casualty of today’s decision,” Mr Hope said.