Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Parker's View At Still At Odds With Economists

News Release

5 November 2008

Parker's View At Still At Odds With Economists

Climate Change Minister David Parker's claims that the current emissions trading scheme will not only be good for the environment but will increase jobs during the predicted slump are completely at odds with the views of our leading economists.

Analysis by NZ Institute of Economic Research, shows that as a result of the emissions trading scheme, New Zealand companies will become less competitive internationally, which will lead to significant job losses, in the region of 20,000 in the next four years.

In addition, the production that used to come from New Zealand will be replaced by production from countries that do not price carbon and which are more energy intensive than New Zealand, leading to a growth in global emissions.

Catherine Beard, executive director of the Greenhouse Policy Coalition, says even the government's own economic analysis by Infometrics in 2007 put job losses in the region of 52,000.

"The reality is that unlike bigger nations, in many of our industrial sectors we have only one significant company. If companies in our steel, aluminum, cement and glass sectors were to close or reduce production, then we have not only lost those jobs to Asia, but we will be forced to import those products at a greater environmental cost."

Catherine Beard said the idea that you can create new jobs out of the destruction of existing jobs thereby benefiting the economy - is in the words of economists Castalia just "economically illiterate".

"Castalia point out that reallocation of resources within an economy is a different concept to growing an economy and increasing wealth. This is because the reallocation of resources takes them away from the area of highest return and requires them to be used less efficiently."

"The sad fact of the matter is that while other governments around the world are trying to work out how to reduce the impact of climate change policies on their stressed economies, David Parker is not having any second thoughts about the wisdom of increasing all our energy costs and putting jobs at risk for little or no environmental gain."


ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 



BusinessNZ: Third Snapshot Report Reveals $9.5 Billion Business Investment In Climate Action

Signatories to the Climate Leaders Coalition have committed to invest $9.5 billion over the next five years to reduce emissions from their businesses, as revealed in their third anniversary snapshot report released today... More>>

Digitl: The home printer market is broken
Printers are more of a security blanket that a serious aid to productivity. Yet for many people they are not optional.
Even if you don’t feel the urge to squirt ink onto dead trees in order to express yourself, others will insist on printed documents... More>>


Serious Fraud Office: Commences Enquiries Into Allegations Of COVID-19 Wage Subsidy Fraud
The Serious Fraud Office has commenced a number of enquiries into alleged abuse of the Government’s COVID-19 Wage Subsidy. Director Julie Read said the allegations relate to multiple complex cases of potential fraud that have been referred to the agency following extensive investigations ... More>>

ComCom: Companies In Hot Water For Selling Unsafe Hot Water Bottles And Toys

A wholesaler and a retailer have been fined a total of $140,000 under the Fair Trading Act for selling hot water bottles and toys that did not comply with mandatory safety requirements. Paramount Merchandise Company Limited (Paramount) was fined $104,000 after pleading guilty in the Manukau District Court... More>>



Reserve Bank: Robust Balance Sheets Yield Faster Economic Recovery

Stronger balance sheets for households, businesses, financial institutions and the government going into the pandemic contributed towards maintaining a sound financial system and yielding a faster economic recovery than following previous deep recessions... More>>


Transpower: Releases Independent Report Into Events Of August 9
Transpower’s Chief Executive Alison Andrew has today released an independent report into the grid emergency of August 9 when insufficient generation was available to meet demand, leading to some customers being disconnected... More>>