The Government’s Emissions Trading Scheme is set to increase price levels by 0.4 percent after it comes into force on July 1, which is the same amount as today’s quarterly inflation result. The impact of this single piece of legislation will be equal to that of all other inflationary forces over the last quarter combined, said ACT Climate Change Spokesman John Boscawen.
“The price impact of the ETS is largely made up of a five percent increase in the price of electricity and a four cents per litre rise in the price of petrol. These are significant increases that will hurt ordinary New Zealanders, especially those already struggling to make ends meet,” Mr Boscawen said.
“Worst of all, the Government is imposing this cost on Kiwis for no apparent benefit. New Zealand is too small to influence the climate on our own. That means, even if Nick Smith and John Key have got the science right, their scheme won’t make an iota of difference to the world climate unless the world’s major emitters act also.
“The reality is that none of the world’s major emitters and none of our major trading partners is proposing anything nearly as radical as the New Zealand ETS, nor are they likely to do so. We’re going it alone. Unfortunately, while we’re too small to change the climate, the ETS is big enough to hurt our economy.
“I call on Prime Minister John Key and Dr Nick Smith to delay, if not scrap, the ETS until the world’s largest emitters and our major trading partners follow suit,” Mr Boscawen said.
Tags: Emissions Trading Scheme