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Saturday, August 12, 2023

Point of Order: Buzz from the Beehive - 12/8/23



Megan Woods brays about $33.3m. energy funding for big businesses – but how much was spent on warming 15 whare?

Energy and Resources Minister Megan Woods, in two press statements, eagerly answers one of the burning questions which concerns Point of Order when we monitor the government’s official website: how are ministers spending (or misspending) our money today?

One statement tells us where $33.3 million will be going: into primary industry sector projects to reduce its reliance on fossil fuels and cut carbon emissions in partnership with Government.

Corporate welfare, some will say.

The other tells us where $4.8 million (at least) has gone: into a small-scale geothermal energy project that is providing more affordable heating “to 15 new whare”.

Māori welfare, by the sound of it.

Woods reinforces this suggestion when she goes on to say that by using ground-source heat pumps, residents together will save around $20,000 a year on energy costs, encouraging households to use more heating in winter for improved wellbeing of “whānau”.

Fair to say, because Beehive politicians and press officers liberally pepper their speeches and statements with te reo in preference to English words nowadays, we can’t be sure if this is a scheme for Maori until we are told the Ngāti Uenukukōpako Iwi Trust built the homes in this case.

Another key question Point of Order aims to address is: where on earth is the minister today?

In the case of Trade Growth Minister Damien O’Connor, he is in Adelaide.

You can learn more HERE:

Latest from the Beehive

12 AUGUST 2023



11 AUGUST 2023


Tēnā koutou, tēnā koutou, tēnā koutou katoa, and thank you for the introduction, Alex.


A small-scale geothermal energy project that received government funding is now up and running, and providing more affordable heating to 15 new whare, Minister of Housing and Energy and Resources Hon


Minister for Trade and Tourism, Senator the Hon Don Farrell, hosted Hon Damien O’Connor, New Zealand Minister for Trade and Export Growth, in Adelaide on 11 August to mark the 40th anniversary of the


Today, New Zealand and Australia have signed a Sustainable and Inclusive Trade Declaration as we mark 40 years of Closer Economic Relations.

A curious aspect the statement about the geothermal heating project is that only the headline tells us where the beneficiaries live. “Roturua” is missing from the text, along with figures that give a firm fix on the cost to taxpayers of heating 15 whare.

Megan Woods enthuses:

“This is a fantastic example of innovation using the Māori and Public Housing renewable energy fund, which was set up to trial sustainable energy options for whānau.”

The exact amount provided from that fund is not stated, but Woods goes on to say the new homes “also” received $4.8 million from the Government’s Whai Kāinga Whai Oranga programme to support the Ngāti Uenukukōpako Iwi Trust with the building.

This invites the question: “also” – or as well as – how much?

The other figures that pop up further down the press statement don’t help:

“Ensuring all whānau have safe, warm, healthy affordable homes with secure tenure, across the Māori housing continuum is an absolute priority for this Government. It is for this reason the Labour Government made the largest investment ever into Māori housing of over $1 billion since 2018.,”Megan Woods says.

The press statement contains notes for editors which provide more figures:

Ngāti Uenukukōpako Iwi Trust is one of 42 small-scale projects around the country to benefit from the fund, which is one-half of the government’s $28 million Māori and Public Housing Renewable Energy Fund.

In addition, $46 million has been allocated to the Community Renewable Energy Fund, as part of the Government’s wider efforts to further support community energy projects.

The much bigger dollop of project funding which Megan Woods wants us to know about will support 17 industrial energy users to help them stop using fossil fuels faster through the Government Investment in Decarbonising Industry (GIDI) Fund.

Some of the country’s largest food processors and manufacturers, such as Alliance and Open Country Dairy, are making commitments on multiple, large decarbonisation projects.

Aside from the government’s large partnership agreements with NZ Steel and Fonterra, this is the largest allocation of GIDI: Industrial funding to date.

The projects announced today will reduce carbon emissions by 67,300 tonnes each year, which is equal to taking approximately 25,000 cars off the road, Megan Woods said.

“New Zealanders and export markets want lower-carbon products and services, and GIDI support is helping them switch sooner to low emission options, proving again that businesses don’t have to deindustrialise, to decarbonise.”

Woods got a first-hand look at operations this week at Rainbow Park Nurseries, which will receive co-funding for technology to generate heat from electricity instead of natural gas, reducing their overall energy-related emissions by 1,191 tonnes CO2 e annually.

Recipients from Round 5 of the GIDI funding come from sectors including sawmilling, meat, milk, beverage and food product manufacturing, dry-cleaning and commercial laundry, nurseries, mining and textile and hygiene services.

The round commits $33.3 million in government investment through and leverages private funding of over $62 million.

The Government Investment in Decarbonising Industry (Fund focusses on investing in, and promoting, cleaner industrial processes and process heat. This is achieved through energy efficiency, applying new and innovative technologies, and fuel switching.

GIDI: Industrial is administered by EECA (the Energy Efficiency and Conservation Authority). It is open to businesses who reduce existing emissions through demand reduction or by choosing a renewable option over business as usual, with up to 50% of the cost difference available as a grant for projects.

This now allocates five rounds of GIDI: Industrial co-funding – across 81 significant industrial decarbonisation projects – all set for completion by December 2027. As a result of these projects an anticipated annual carbon abatement of 456,653 tonnes of CO2 will be realised.

The GIDI programme is expected to deliver projects that will make up around one sixth or 17 percent of our total emissions reductions planned between 2022 and 2025, and around one third or 35 percent of our emissions reductions planned between 2025 and 2030. This is achieved through energy efficiency, applying new and innovative technologies, and fuel switching.

The full list of GIDI: Industrial recipients from Round 5 can be seen here: Approved GIDI projects | EECA

The first four GIDI Rounds co-invested more than $78.8 million on decarbonisation projects across New Zealand.

The $1billion GIDI Fund has five parts,
Projects must significantly reduce existing emissions from process heat, and applicants must demonstrate that they could not proceed at all, as early, or with as much impact, without government support.

GIDI Private Finance provides potential GIDI applicants with information and funding about participating finance providers who offer advantageous rates and terms for decarbonisation projects.

Point of Order is a blog focused on politics and the economy run by veteran newspaper reporters Bob Edlin and Ian Templeton

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