Wednesday, April 30, 2008

so what will it be, the environment or a job and a home?

It's all well and good if you're working in the public sector and like the idea of touchy feely feelgood policies, but look at what Liarbour's carbon trading, emmisions regime might bring.

Today, the New Zealand Economic Reserach Institute warns the policy will bring 'more pain than necessary' and "could cost New Zealand 20,000 jobs, reduce agriculture exports, cut wages and slash almost $6 billion from gross domestic product."

The NZEIR report continued:

"In 2012 the equivalent of 20,000 jobs will be lost as the economy adjusts," he said.
"By 2025 GDP will fall by almost $6 billion, household spending will be down by $3000 per household and hourly wage rates will be down by $2.30 in today's prices."
With New Zealand the only country in the world known to be including agriculture in an emissions trading scheme, the rural economy would be particularly hard hit, Layton added.

Furthermore, "dairy land could fall in value by 40 per cent, Layton estimated, with sheep and beef farms losing 23 per cent of their value."

And all because the government wants to lead, where others do not follow, despite our own carbon emmissions being just 0.4% of the global total.

It might not be so bad, if such emmissions trading scheme might work, but the independent Cawthorne Institute warns it might actually be environmentally damaging!

The institute warns of "significant environmental effects" from the Government's drive to lower greenhouse gas emissions, including the loss of indigenous ecosystems such as regenerating forest, scrubland and tussock grasslands, increased pressure to dam or divert rivers for hydro-electricity generation, and the effect on natural character and landscapes from afforestation and the use of wind turbines.
"Because it is so far-reaching, covering all sectors and all gases, the ETS-plus could also cause a range of unintended adverse environmental consequences unless response measures are put in place to address them," the institute says.

And then there is the health impact of higher power prices on the poor to consider!

Indeed, much of the cost of complying with the legislation would fall on householders.

Brian Fallow in today's NZ Herald notes another report saying 90% of a $4 billion bill over 5 years would fall on household, small busineses and road users.

And this on top of similar reports from the Employers and Manufacturers Association this week,

and Business New Zealand and the Greenhouse Policy Coalition, who made their submissions to government earlier this month.

So as we look at our growing food and energy prices, caused by in part by governments making it harder for firms to supply fuel, or farmers to grow more food, consider the impact of Liaour's emissions policy on your own household budget.

You might be fine if you work in the public sector and I am sure there will be some jobs created for bureaucrats to administer th scheme, but otherwise, what will it be?
Do you want New Zealand, which produces 0.4% of global carbon emmissions, to obey Kyoto; or do you prefer a job, a house, a car you can afford to run, and even food on your table!


Anonymous said...

If "by 2025 GDP will fall by almost $6 billion" doesn't that mean the tax take would be down by about $2 billion, which is more than the $1 billion Kyoto deficit the Government is worried about?

emmess said...

Never in the history of democratic nations have we had a movement in power so open about it intentions to hurt people.