Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Government dropping carbon tax labelled pathetic

21 December 2005
Media Statement
For immediate use

Government dropping carbon tax labelled pathetic

The Environmental Defence Society (EDS) has called the government's announcement that it is dropping the carbon tax "pathetic."

EDS Chairman Gary Taylor says in his opinion Ministers and the Climate Change Office have been captured by advocates for energy intensive business such as the Greenhouse Policy Coalition (GPC) which have a vested interest in getting the tax dropped.

"There has been no public consultation around this fundamental change although we understand that the GPC has been working hard behind the scenes to get the tax dropped. It is a u-turn that has no moral authority or legitimacy because it was subject to a secret process that deliberately excluded the public.

"This is in stark contrast to the highly consultative process during 2002 that led to the tax being proposed as a key plank in our domestic policy response to the greenhouse challenge.

"The tax was an essential part of New Zealand's domestic response to its obligations under the Kyoto Protocol. We simply have to put a price on carbon. Without a carbon charge investors will have no pricing signals when it comes to investment in carbon-based projects. The only alternative to a carbon charge is full-blown emissions trading but that's off the agenda as well," said Mr Taylor.

"New Zealand's emissions are over 22% above the level they were in 1990. We have a commitment under the United Nations Convention to get back to that level. But now the policy cupboard is bare and the government has simply failed on climate change.

"Announcing this just before Christmas is an attempt to hide from the world. New Zealand has been a leader on climate change and now its moral authority has been undermined.

"I think the Climate Change Office and Treasury should have another go designing the tax. It was always intended to be fiscally neutral. That meant that there should have been a commensurate reduction in company and personal tax rates so that overall burden of taxation did not increase. Instead there were complicated proposals around depreciation rates and other recycling concepts none of which clearly showed fiscal neutrality.

"If the design flaws were fixed and it was clearly a replacement tax rather than an additional one, it could still secure support in parliament. It could even have marshalled support from the business sector and the wider public. It makes clear sense to tax pollution rather than income.

"The implications of this change in direction are considerable.

"For example, the RMA was amended to preclude carbon emissions from being considered because it was argued that the carbon tax would set the correct price signals at a national level. In the absence of the tax the government must change the Resource Management Act back to its original provisions so that the effect of carbon emissions can be considered in resource consenting processes.

"With respect to the Huntly power station, dropping the tax means that under an agreement between Genesis Energy and EDS, emissions there are now capped which means the old plant cannot run at full throttle. This will have adverse implications for both power prices and availability. No consideration appears to have been given to this matter.

"Climate Change is the biggest environmental problem facing the planet. Dropping the tax raises serious questions about New Zealand's commitment to playing its part in the global effort to reduce emissions.

"The measures proposed to replace the tax are soft options merely there for investigation and will do little to help us onto a downward trajectory in our greenhouse gas emissions.

"This is a very disappointing day for the environment and seriously undermines confidence in the government's environmental commitment.

"It is also a bad day for open government because of the highly secret nature of the review" Mr Taylor concluded.

Ends


Gary Taylor is the Chairman of the Environmental Defence Society ( www.eds.org.nz) and convenor of the 2nd Australia-New Zealand Climate Change and Business Conference ( www.climateandbusiness.com) to be held in Adelaide, South Australia 20-21 February 2006

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Crowdsale And Crowdfunding Campaign: Help Create The Future Of Independent News

Two weeks to go! The Scoop 3.0 plan aims to create NZ’s first community-owned, distributed news and media intelligence ecosystem in 2019. We believe this ScoopPro media monetisation approach can be scaled and spread globally to support local and independent news efforts in regional New Zealand and around the world.

Scoop is an ecosystem, it would not exist without those who contribute to it, read it and rely on it for professional media purposes. Generous past support from this ecosystem has enabled us to come this far in developing our business model. Support our PledgeMe Campaign>>

 

14/11: Two Years’ Progress Since The Kaikoura Earthquake

Mayor John Leggett said it was a day for reflection, but also a time to recognise the work by many people to support progress towards recovery made across Marlborough since November 2016. More>>

ALSO:

Pike River: Mine Drift Re-Entry Plan To Proceed

“I’ve decided the Te Kāhui Whakamana Rua Tekau Mā Iwa - Pike River Recovery Agency, recommended course of action to enter the drift, using the existing access tunnel, is by far the safest option,” said Andrew Little. More>>

ALSO:

Appointments: New High Commissioner To Australia Announced

“Dame Annette King needs no introduction given her long running career as a parliamentarian where she has previously held a number senior Cabinet portfolios, including Justice, Police and Health. She also was Parliament’s longest serving female MP with 30 years’ service,” said Mr Peters. More>>

ALSO:

Two Years Since Kaikoura: Silvia Cartwright To Lead Inquiry Into EQC

“The inquiry will be the first of its kind under the Public Inquiries Act 2013 and will have all the powers of a Royal Commission, be independent of Government and make its report directly to the Governor-General. More>>

ALSO:

Gordon Campbell: On The Royal Commission Into Child Abuse

Obviously, it is good news that the coalition government has broadened the scope of its Royal Commission into the abuse of children, beyond its previous focus on children in state care. More>>

ALSO:

Cases Delayed: Court Staff Refuse To Handle Sentencing Papers

Dozens of court cases have reportedly been delayed, as court staff escalate industrial action at two Auckland courts by enforcing a ban on handling sentencing papers. More>>

ALSO:

Education: Primary Teachers Rolling Strikes

RNZ Report: More than 100,000 primary school students in Auckland will be home from school today as teachers and principals walk off the job for the second time this year. It's the start of a week of rolling one-day strikes around the country, after the collapse of contract negotiations last Thursday. More>>

ALSO:

"Process Was Sound": Inquiry Into Haumaha Appointment Released

The Inquiry’s purpose was to examine, identify, and report on the adequacy of the process that led to the appointment. It found the process was sound and no available relevant information was omitted. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels