The Government’s $110 billion blowout

16 November 2009
Media Statement

The Government’s $110 billion blowout

The shambolic process around the Government’s proposed Emissions Trading Scheme has been exposed by a $50 billion blunder by National, Labour Leader Phil Goff said today.

“The Select Committee report on National’s amended ETS released today shows its initial costings were hopelessly inaccurate,” Phil Goff said.

“Environment Minister Nick Smith first told New Zealanders the long term fiscal impact of his ETS bill would be 6-8% of GDP or around $50 billion. Now we are told the true cost could be up to 16% of GDP.

“That puts the total cost of National’s ETS at around $110 billion. That’s a $50 billion mistake by National in its calculations.”

“That doubles the cost of National’s ETS for taxpayers and means the Government is lumping each New Zealand family with a $92,000 burden to pay for their plan.”

Phil Goff says the blunder is hardly surprising.

“Nick Smith’s process has been a shambles. It’s been rushed, there’s been poor or no consultation, and there’s been a dishonest disclosure of likely costs,“ Phil Goff says.

“Labour will not support National’s ETS. The Government’s plan will leave Kiwis with a $110 billion bill to pay allowing polluters to continue polluting.

“A major cause of the hugely inflated costs is an approach that hasn’t focused on reducing emissions but rather on transferring the cost from polluters to the average hardworking Kiwi taxpayer.

“It is further evidence of National’s short sightedness in having no plan but imposing the cost of today’s problems on the next generation of New Zealanders - those under 35.”

ENDS