12 November 2009

Government needs to come clean on ETS costs

Serious disagreements have arisen about the true costs of the Government’s Emissions Trading Scheme proposals and the Minister needs to explain himself, the Green Party said today.

A report released today by the Sustainability Council and a detailed submission to the Select Committee reviewing changes to the ETS are at odds with the story coming from the Beehive.

“The Minister has repeatedly claimed that he was saving householders money with this Bill and has consistently played down the long-term costs to the taxpayer,” said Green Party Climate Change Spokesperson Jeanette Fitzsimons.

“The Sustainability Council’s report shows that taxpayers will be paying eighty-five percent of the costs of climate change – far more than their share. It shows the Government is postponing the day of reckoning, as total costs to the taxpayer rise over time, leaving a fiscal time-bomb for future Governments to worry about.

“A detailed submission from Dr Christina Hood, based on Treasury assumptions, puts the cost of the changes at $105 billion, which is at odds with the Minister’s claims. Treasury needs to say who is right.

“Dr Hood’s figures are also based on information provided by the Minister where the timeline on the graph has been skewed, concealing the true nature of the ETS changes.

“The only thing that is crystal clear is that nothing is clear about what this Bill would do.

“The Minister needs to come clean on who is right, Dr Hood or himself,” Ms Fitzsimons said.

For the full text of the Sustainability Councils Report:
http://www.sustainabilitynz.org/docs/ETSBillToAFutureGenerationNov09.pdf

Dr Christina Hood’s submission to the FEC, questioning the Minister’s graph (see page 13):
http://www.parliament.nz/NR/rdonlyres/6C882B6B-0972-4EFF-A0F6-EB5D5789FB19/115616/49SCFE_EVI_00DBHOH_BILL9597_1_A14707_DrChristinaHo.pdf

ENDS

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