“Banning default KiwiSaver providers from investing in fossil fuels is more gesture politics from Jacinda Ardern’s Government”, says ACT Leader David Seymour.
“As with the ban on offshore oil and gas exploration, this decision will hurt the economy for no environmental gain.
“Default KiwiSaver providers represent 0.001 per cent of all investment in fossil fuels.
“Divestment will have almost no impact on the production of oil and gas or climate change.
“Demand for fossil fuels will continue to exist and investors will continue provide capital.
“The Government’s decision will let overseas investors benefit from oil and gas investments while hurting the returns New Zealanders earn from KiwiSaver. All this does is change who owns fossil fuel investments.
“To the extent divestment has any impact whatsoever, it will increase the cost of doing business for oil companies, reducing exploration and oil supply and raising petrol prices.
“Kris Faafoi says motorists are being fleeced and that he wants to reduce the petrol prices New Zealanders pay. Ironically, this could actually have the opposite effect.
“Ultimately, this is just more gesture politics. It is a feel good decision that will be counterproductive, hurting the economy for no environmental benefit.
“Labour and the Greens are so badly out of touch with how the real world works and New Zealanders will pay the price.”