National's LNG Contract Signing Sparks Controversy Ahead of Election
The National-led Government is planning to sign a binding contract for its proposed liquefied natural gas (LNG) import terminal before the November election, but critics argue that this would be premature and potentially costly.
Energy Minister Simeon Brown has stated that his authority to act as government leader remains until polling day, justifying the decision to sign the contract ahead of time. However, experts argue that this move disregards democratic principles, as a future government may abandon the project and leave taxpayers with a significant compensation bill.
The enabling legislation for the terminal is still pending, and some members of the coalition, such as Shane Jones from NZ First, have expressed reservations about signing the contract before Parliament has passed the necessary laws. Brown's spokesperson claims that signing first would be the 'more responsible approach,' but critics argue that this creates unnecessary risks for taxpayers.
The potential costs of cancellation are unclear, with some estimates suggesting that taxpayers could owe millions in compensation to investors if a future government decides to abandon the project.