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Labour Lumbers Business With Another Tax

"The Labour-Alliance coalition's decision to lump a carbon tax on New Zealand businesses will impose extra costs on all New Zealanders," says National's Finance spokesman David Carter.

Mr Carter's comment follows the Government's plan, out today, to commit New Zealand to the Kyoto Protocol.

"This Government's determination to ratify Kyoto is going to mean New Zealand businesses will face extra costs that many of their competitors in other countries will not.

"All this decision will do is please our Australian, Canadian and US business competitors."

Mr Carter says despite all the spin, the agriculture sector has not escaped been directly hit with a carbon tax. He says the sector is still going to have to pay for ratifying Kyoto.

"The Government's stipulation that the sector must invest in research to reduce agricultural greenhouse gas emissions or it will impose a levy is a less than subtle threat to enforce a flatulence tax on farmers."

Mr Carter says another big concern over the Government's Kyoto policy is its intention to seize carbon credits from forest owners.

"In fact, this is allowing the Government to steal private property rights by stealth."

Mr Carter says National, along with many union and business groups, has always argued that New Zealand should not ratify the Kyoto Protocol ahead of our trading partners.

"It risks damaging our economic, trading and export competitiveness, while failing to provide the intended climate change outcomes.

"Imposing another tax on business and yet more costs on New Zealanders is not going to help lift our OECD ranking and only push us further down the standings," Mr Carter concluded.

Ends

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