March 5, 2009

Government needs to learn how to walk and chew gum if it's to fix this economy

Green Party Co-Leader Jeanette Fitzsimons continued to question in the House today the Government's resistance to adopt a Green New Deal approach to solving the twin crises of economic recession and climate change.

"Instead of a doctrinaire attachment to tax cuts and spending on roads, the Government should listen to Sir Nicholas Stern, the United Nations, Barack Obama, along with many other governments around the world: Green New Deal investments will address both the economic and environmental crises at the same time," Ms Fitzsimons said.

"The support for this type of simultaneous approach is worldwide and can't be denied. Why can't this Government walk and chew gum at the same time?"

Sir Nicholas Stern, Chief Economist and Vice President of the World Bank is one of the foremost advocates for a Green New Deal. He argues Governments around the world need to respond to the recession by developing low carbon economies - economies that will foster new jobs and new opportunities for innovative businesses.

Finance Minister Bill English gave a highly qualified answer in the House today during Oral Questions uncritically measuring all job creation efforts equally regardless of whether they leave the country in a more sustainable position or not. "Not all jobs are created equal." Ms Fitzsimons believes. "For example, public transport services are more job intense than building new roads and will minimise our carbon emissions at the same time."

"In addition, the International Monetary Fund has found that government spending is much better at stimulating the economy than tax cuts but our Government is giving tax breaks to those earning hundreds-of-thousands of dollars at the expense of government spending on sustainable jobs," said Ms Fitzsimons.

The World Economic Outlook Update recently released by the International Monetary Fund (IMF) adds to the global call for Green New Deal economic initiatives. Earlier this week, in questioning the National-led Government in the House, the Green Party also drew attention to an Australian Treasury analysis showing that early action to address climate change was best for the environment and the economy. As a result, Green New Deal packages were being implemented in the US, France, Germany, Denmark, Spain, Australia, Korea, China, and Mexico.

For further information please see:

The IMF's World Economic Outlook Update: http://www.imf.org/external/pubs/ft/weo/2009/update/01/index.htm

Australia Treasury - Low Pollution Future: The Economics of Climate Change Mitigation: http://www.treasury.gov.au/lowpollutionfuture/

ENDS

© Scoop Media