National Leader Simon Bridges labels oil and gas exploration ban an economic 'wrecking ball'

Simon Bridges said the Government's oil and gas exploration ban policy will be a "wrecking ball through regional New Zealand." Photo / Mark Mitchell

The Government's oil and gas exploration ban policy will be a "wrecking ball through regional New Zealand", says Opposition Leader Simon Bridges.

He said the negative economic impacts of the policy would be felt worst in the provinces.

This follows Government officials revealing the estimated economic costs of the policy would be $8 billion, between 2027 and 2050.

But Bridges said that estimate could be on the low end and, when the cost of job losses is factored in, the real cost could balloon to $20 billion.

"This is a disaster for our economy – particularly for the regions and particularly Taranaki."

The policy will be like a "wrecking ball through regional New Zealand".

Green Party Co-Leader James Shaw said the economic cost of the policy, as outlined by MBIE is "absolutely worth it".

He said the MBIE analysis does not take into account the economic impact climate change will have on New Zealand if nothing is done.

Last night, the Ministry of Business, Innovation and Employment (MBIE) released its regulatory impact statement (RIS) on the policy, which was announced in April this year.

The $7.9 billion estimate is the mid-point of a series of estimates that vary widely with different variables but represents a medium exploration scenario.

Acting Prime Minister Winston Peters has also voiced his concerns over the variance in the cost estimates. He said the Government needs something "far more accurate and responsible than that".

"If Nasa relied on those sorts of calculations, Neil Armstrong would still be trying to find the moon."

Energy Minister Megan Woods also contested the figures, saying the report itself expressed caution about relying on resource estimates – "this study attempts to qualify what is almost unquantifiable".

Despite this, Woods says the Government is "absolutely committed to have the courage to make the long term transition planning and put that in place".

"We are not content to relive the 1980s and see rapid change because a Government did not have the courage to put in place the long-term thinking and planning."

Bridges, however, is not convinced the policy is all that courageous.

"[The TV show] Yes Minister used to talk about being courageous – what they bluntly meant was 'stupid'. That's what we have seen here."

He is urging the Government to consider the policy which he said was made "in haste for photo ops and TV cameras".

The Crown Minerals (Petroleum) Amendment Bill was introduced to Parliament yesterday.