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Hodgson can't answer questions on competition

John Key MP - National Party Finance Spokesman

04 May 2005

Hodgson can't answer questions on competition

National Party Finance spokesman John Key says Pete Hodgson has been unable to answer questions about how Labour's carbon tax will impact on our competitiveness with our major trading partners.

"Mr Hodgson can't answer simple questions on this issue. China, Australia and the US will not be imposing a carbon tax on business, New Zealand will.

"Why should New Zealanders be paying a premium on coal recovered from the South Island, when the same coal can be exported to China where it won't carry a carbon charge?

"Labour's carbon tax will drive up electricity and fuel prices, it will cost jobs and will undermine our international competitiveness.

"This is yet another tax on business growth. Mr Hodgson needs to guarantee to all New Zealanders that every dollar raised in the carbon tax will be spent on reducing CO2 emissions. I predict he will be unwilling to do anything of the sort.

"National has a clear policy on this issue. National will oppose Labour's carbon tax and will repeal it. This is based on uncertain science and commonsense suggests we should reserve judgment until the second commitment period in 2012," says Mr Key.

ENDS

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