The Government’s carbon credit trading scheme could have shut New Zealand’s only cement manufacturing plant, but Fletcher Building announced today it got a $60 million bailout to keep it running - the $60m is not a loan.

NZ Initiative Chief Economist Dr Eric Crampton told Heather du Plessis-Allan that the bailout doesn't address the root cause of the issue. 

"It's a mess that's trying to solve what's actually a real problem in how the government's industrial allocations in the emissions trading scheme work - the design of those is not good, and they are particularly not good when it comes to cement manufacturing," he said.

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