Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Labour needs to come clean on ETS windfall profits

Hon Dr Nick Smith MP National Party Climate Change Spokesman

20 May 2008

Labour needs to come clean on ETS windfall profits

National today challenged the Government to release the official papers that reveal just how much the Government is set to profit from the emissions trading scheme.

National's Climate Change spokesman, Nick Smith, says: "The Government is set to make billions under this scheme from higher electricity prices and from the sale of emission permits, but the only figure the Minister talks about is the Kyoto liability of $483 million.

"The windfall profit arises because state companies like Meridian, Mighty River Power, and Genesis get the benefit of higher power prices over all their power sales, but are not having to buy emission permits for their renewable generation. The mid-range estimate is an increased profit of $150 million per year or an increase in the value of these state companies of $1 billion."

The emissions trading scheme Cabinet Paper (CAB (07) 589) notes: 'The increased revenues for government, associated with increased costs of electricity could also be significant. Estimates of the windfall profits that are likely to be received by SOEs ... is $70-220 million/year.'

"Officials have also advised that the Government would make between $6 billion and $22 billion from the sale of emission permits, depending on the carbon price. These permits arise from the Government having more units to sell than it allocates in the years 2013 to 2025.

"I am appalled the Government denied leave in Parliament today to table the Emissions Trading Group Report on the flow of revenue to the Government under the emissions trading scheme, and have removed from their website the Cabinet paper revealing the windfall profits from electricity.

"It is time for Labour to come clean. They are promising tax cuts to New Zealanders on one hand whilst secretly planning to take billions off them with the emissions trading scheme with the other.

"National does not support the emissions trading scheme being used as another tax and will redesign it so it is not used as a cash cow."


ENDS

© Scoop Media

 
 
 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Back Again: Government Approves TPP11 Mandate

The Government has approved a negotiating mandate for Trans-Pacific Partnership 11 (TPP11), which will ensure New Zealand businesses remain competitive in overseas markets.

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>

ALSO:

.

 
 

Gordon Campbell: On Why Labour Isn’t Responsible For Barnaby Joyce

As a desperate Turnbull government tries to treat the Barnaby Joyce affair as a Pauline Hanson fever dream – blame it on the foreigners! We’re the victims of the dastardly New Zealand Labour Party! – our own government has chosen to further that narrative, and make itself an accomplice. More>>

ALSO:

Rail: Greens Back Tauranga – Hamilton – Auckland Service

The Green Party today announced that it will trial a passenger rail service between Auckland, Hamilton and Tauranga starting in 2019, when it is in government. More>>

ALSO:

Housing: Voluntary Rental Warrant Of Fitness For Wellington

Wellington City Council is partnering with the University of Otago, Wellington, to launch a voluntary Rental Warrant of Fitness for minimum housing standards in Wellington, Mayor Justin Lester has announced. More>>

ALSO:

Treaty: Agreement In Principle Signed With Moriori

“The Crown acknowledges Moriori was left virtually landless from 1870, hindering its cultural, social and economic development. The Crown also acknowledges its contribution to the myths that the people of Moriori were racially inferior and became extinct." More>>

ALSO:

Susan Devoy: Call For Inquiry Into State Abuse Reaches UN

Race Relations Commissioner Dame Susan Devoy is in Geneva and has asked a United Nations committee to urge the New Zealand government to initiate an inquiry into the physical and sexual abuse of children and disabled people held in state institutions. More>>

ALSO:

(Not National): Cross-Party Agreement On Pike River Re-Entry

The commitment was signed this afternoon by the leaders of Labour, United Future, The Maori Party, and the Green Party and, together with the earlier commitment by New Zealand First, means that there is now a Parliamentary majority behind the families’ fight for truth and justice. More>>

ALSO:

Earlier:

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

Featured InfoPages

Opening the Election