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ETS The Wrong Approach

Posted on 21 Jul 2009

ACT New Zealand Finance Spokesman Sir Roger Douglas today urged the Government and the Emissions Trading Scheme Select Committee to carefully scrutinise the report released last week by the Centre of Independent Studies.

"The report states, quite rightly, that an ETS is the wrong approach and advocates a carbon tax – not as the best option but, rather as the best option currently available," Sir Roger said.

"At least a carbon tax would result in revenue for the Government, which can be used to reduce company and personal income tax rates. Linking climate change policy to tax cuts will ensure that it does not significantly damage the economy.

"The report also outlines that agriculture should be excluded. Taxing agriculture does little to facilitate a sustainable low-emission economy. A carbon tax which excluded agriculture would still provide important incentives toward new technology without harming the economy.

"If the Government feels it must be seen to be addressing climate change, it must do so in a manner that causes the least possible harm to New Zealand’s economy and those who drive it – especially our farmers and other primary producers," Sir Roger said.

ENDS

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