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Welcome end to harmful pollution subsidy

17 March 2016

Welcome end to harmful pollution subsidy

The Green Party is welcoming the decision yesterday by the Minister for Climate Change Issues to signal she will end the ‘buy-one-get one-free’ provision in the Emissions Trading Scheme (ETS), but warns it’ll be mean little unless followed by further major changes to the scheme.

“After eight years of refusing to do anything about it, the National Government been forced to finally put an end to one of the massive pollution subsidies it has long protected,” said Green Party co-leader James Shaw.

“But ending this subsidy will not result in substantial cuts to climate damaging pollution unless the National Government removes other distortionary subsidies in the ETS.

“Getting rid of this subsidy to polluters must be the first of many steps the National Government takes to redeem its appalling record on climate change.

“The ETS has been so weakened over the years by National that we would actually be better off replacing it with a revenue-neutral carbon tax. With a carbon tax, revenue collected would be returned to New Zealanders through reductions in other taxes and tax credits," said Mr Shaw.


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