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


Tax Cuts Cancelled Out By Emissions Trading Costs

Tax Cuts Will Be Cancelled Out By Emissions Trading Costs

The provision of $1.5 billion in the crown accounts for tax cuts by the Labour government will be largely cancelled out by the introduction of the toughest emissions trading scheme in the world, according to the Greenhouse Policy Coalition.

The Greenhouse Policy Coalition represents large industrial employers in New Zealand, who are monitoring the design and the costs of the scheme closely.

Catherine Beard, executive director of the Greenhouse Policy Coalition says if the tax cuts are in the region of $1.5 billion, which is reported to be about $15 a week for every wage earner, a carbon price of $50/tonne CO2e, will increase household expenditure by up to $660 per annum, wiping out a good deal of that tax return.

“At the time the tax relief would take effect, in early 2009, consumers could expect an 8% increase in the price of petrol and a 14% increase in the price of diesel, as a result of the carbon trading scheme, according to the government’s own calculations” (page 29 Explanatory Note Climate Change (Emissions Trading and Renewable Preference Bill).

Catherine Beard said a carbon price of $50.00/tCo2 was not inconceivable by 2009, as currently good quality project credits (CER’s) were selling for NZ$33 tonne and the EU ETS price of carbon is $NZ 44 tonne.

Catherine Beard said the government could avoid making the scheme the most expensive in the world by making some important changes to the recently introduced Climate Change (Emissions Trading and Renewable Preference Bill).

“Like Australia we should be considering a price safety valve that caps the price of carbon to a level acceptable to our economy in order to prevent significant economic damage”, she said.

“When Minister Parker launched the NZ Energy Strategy on 11 October he said it was likely to be some time before the international and New Zealand carbon price reached $25 per tonne. Clearly the government’s prediction of carbon prices was way off the mark, and they will be exposing the New Zealand economy to much higher prices than they had contemplated.”


© Scoop Media

Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On The New Pike River Agency (And The Air Strike Wing)

Much of the sympathy the public still feels for the families of the Pike River miners has been sustained by the sense that the previous government – let alone the mining company and the processes of receivership and litigation – has never dealt honestly, or fairly, with them.

Finally, yesterday’s announcement by the Ardern government that a new state agency will be set up to assess and plan the manned re-entry to the mine (on a set timetable) goes a long way to meeting the families’ remaining request: that they be enabled, if at all possible, to bury their loved ones. More>>


Not Going Swimmingly: Contractor Cut, New Dates For Christchurch Sports Centre

“As an incoming Minister, I have been conducting a thorough review of progress on the Anchor projects and to learn of a $75 million budget blowout on this project was very disappointing..." More>>


Tertiary: Allowances, Loan Living Costs To Get Boost

“From 1 January, student allowance base rates and the maximum amount students can borrow for living costs will rise by a net $50 a week,” says Education Minister Chris Hipkins... further adjusted from 1 April 2018 in line with any increase in the CPI. More>>


Foreign Affairs: Patrick Gower Interviews Jacinda Ardern

Prime Minister Jacinda Ardern says discussions have already begun on how to bring climate change refugees into New Zealand under a Pacific seasonal employment plan... More>>


Gordon Campbell: On The Centre Right’s Love Of ‘Nanny State’

You’d almost think it was 2005 again. That was a time when the rugged individualists of the centre-right were being beset by government regulations on the nature of light-bulbs, the size of shower heads, the junk food available at school tuck shops and other such essentials... More>>

Speaking Of Transport: Public Engagement On Wellington Scenarios

“Our work on possible solutions for Wellington’s transport future is ongoing, but has progressed to the stage where we’re ready to share our ideas with the public and seek their feedback to help guide our next steps...” More>>


Parental Leave: National's Time-Sharing Change Fails

National has proposed a change to the Parental Leave and Employment Protection Amendment Bill that would allow both parents to take paid parental leave at the same time, if that is what suits them best. More>>





Featured InfoPages

Opening the Election