Last week, Norwegian oil company Statoil used the pages of the Northern Advocate to make what we believe to be false claims about the economic benefits their drilling would bring to our shores.
They said there "is no doubt that most of the income would go to New Zealand". This is simply not true.
Official figures clearly state that depending on the outcome of Statoil's exploratory work, the Government would receive a payment of 5 per cent ad valorem royalty (AVR) on the basis of the sales prices received, or 20 per cent of the accounting profit revenue (APR) which reflects a share of the profits once all significant costs have been recovered by the producer, depending on which is greater.
In addition, Statoil would have to pay corporation tax.
This is not "most income". Corporation tax plus either AVR or APR will mean that Statoil will in fact pocket the majority of any income and take it home to Norway.