The appetite of Dr Cullen and this Government for more taxes is legendary, 43 new and increased levies and taxes have been introduced. The latest is the carbon tax. It will add 6c per litre to the price of petrol, 7c per litre to diesel, 6% to all power bills and put the price of coal and gas up by 9%.
This week National launches the axecarbontax.co.nz campaign. The new finely balanced Parliament gives us the opportunity to send the carbon tax the way of the fart tax.
The madness of the Government’s new carbon tax is that New Zealanders will be the only people in the world paying it. It will drive up the costs of living and undermine the competitiveness of New Zealand business for negligible environmental gain.
Labour Ministers may take pride in being toasted at International Climate conferences for being so bold and brave, but there is no justification for New Zealand going out in the cold by itself on this issue.
New Zealand’s greenhouse gas emissions made up only 0.4% of the global total and on a per capita basis our emissions are half those of countries like Australia and the United States. We are the only Southern Hemisphere country with binding legal obligations under Kyoto and giants like China and India have got off scot free.
The carbon tax will cost the Nelson and Marlborough regions $25 million a year. We are particularly hard hit because industries like fishing, farming and forestry are big fuel consumers. The tax is particularly insulting to the forestry sector and those farmers who have woodlots because the Government has taken the carbon credits for themselves. Only a Labour Government would have the audacity to impose a carbon credit on the forester for his diesel use but steal the carbon credits from his growing forest.*
A further concern of the carbon tax is its impact on inflation, interest rates and the exchange rate. It will add to the costs of fuel and power and these flow right through the economy to basics like food. This puts pressure on inflation, which in turn drives up interest rates and the kiwi dollar. The Government’s carbon tax is a classic example of the way the Government is making things tougher for the productive exporting sector. It just makes their policies of 2006 being the ‘Year of Exports’ an exercise in shallow spin.
Dear Nick - why say this when you never meant it? Absolutely none of it.
* Ha ha ha ha ha. Only a Labour AND a National gummint Nick!