12 February 2007

Sustainability cannot happen without Green economics

If this Government wishes New Zealand to be the first truly sustainable nation and eventually carbon neutral it must change the economic framework within which business has to work, Green Party Co-Leader Jeannette Fitzsimons told the Party’s North Island Summer Policy Conference today.

“Business is responsible to its shareholders. It is Government’s role to ensure business can be profitable by being sustainable. It is not doing that.”

Ms Fitzsimons outlined how a billion dollars of business tax cuts resulting from the business tax review could be redirected to encouraging business to reduce its carbon emissions and so save taxpayers the cost of purchasing carbon credits in 2012.

She proposed tax incentives for investment in:

• Energy-saving or renewable energy technology that would pay for themselves over the life of the investment, but not fast enough to meet the company’s current requirements for return on capital.
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• Plant or processes that reduce pollution, waste and the use of toxic materials.
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• Research and Development into more sustainable production methods.
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• Staff training in cleaner production technologies and energy auditing.
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Fringe Benefit Tax should be removed from public transport and cycle facilities issued to staff in place of cars and car parks.

Landlord should be able to claim tax deductibility for insulating rental properties the way they can for maintenance.

The proposal under the business tax review to drop the company tax rate for all businesses would not move New Zealand towards sustainability.

“The tax review is a huge missed opportunity to put more meat on the bones of the Prime Minister’s goal by making it profitable for business to be sustainable,” Ms Fitzsimons says.

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