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Kiwi families will foot bill for Nat’s revised ETS

14 September 2009
Media Statement

The deal National has struck with the Maori Party will deliver an inferior Emissions Trading Scheme and one under which the Kiwi taxpayer will foot the bill instead of the polluters, Labour Leader Phil Goff said today.

"It is utterly misleading for National to claim that Kiwis will save money on power bills and petrol compared with Labour's ETS scheme. Those same Kiwis will now have to foot the bill through paying higher taxes, effectively subsidising emitters to keep polluting," Phil Goff said.

"The cost will be in the hundreds of dollars per household per year on top of the average family's tax bill. The Government puts the overall bill at $400 million, which the taxpayer will have to pay.

"I challenge the Government to release the Treasury analysis on this because we believe the cost may well be more than this.

"Heavy emitters will lose the incentive to cut their pollution because the cost of it will be paid by the New Zealand taxpayer rather than them.

"It is a pity that National reneged on its negotiation with Labour because an agreement between the two major parties would have created certainty and sent a clear message to all concerned that the policy put in place would be sustained regardless of the party in government.

"I regret that negotiations entered into by Labour in good faith at the request of National have ended because of bad faith on its part," Phil Goff said.


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