The Green Party plans to impose a carbon tax on us:
. . . Co-leader Russel Norman wants to scrap the current carbon pricing system – the Emissions Trading Scheme.
In its place would be a tax of $25 per tonne of carbon on industry polluters. . .
Critics of the tax claim the tax is a burden on households, who pay higher electricity and fuel costs.
However, the Greens say their levy would be offset by a ”climate tax cut” on the first $2000 of income.
”We can reduce our emissions without hurting household budgets,” he said. ”Households will be on average $319 better off every year under the Green party policy.” . .
Imposing a tax with one hand and giving a tax with another won’t make anyone better off because the tax will lead to other cost increases on fuel, power and food which will passed on, in part or full, to consumers.
Agriculture – which is currently exempt from the ETS – would pay a reduced rate of $12.50 per tonne. This works out as an 12.5 per cent hit on farmers’ income. This includes 2 per cent on the working expenses of the average farm. A Berl Economics report, released with the policy, said dairying will be ”adversely affected.”
Dairying won’t just be adversely affected by the carbon tax, it will be hit by other Green policies too.
But it adds: ”However, at the currently projected pay-out for milk solids, even dairy farms in the lowest decile would remain well above break even in the face of an emissions levy.”
What happens when the payout drops to its long-term average which is well below the $7 forecast for the coming season?
What about the environmental impact of less efficient farmers in other countries increasing production because our produce is more expensive which makes it easier to compete with us?
And what about the poor people who will face higher prices for dairy products, power and fuel?
Other gas-emitting industries – such as electricity and road fuels – are less likely to be affected because they would be able to ”pass-on any production cost increases to households.” . . .
That will be the households whose earners will be getting a tax cut, the benefit of which will be less than the cost increases from the extra tax.
BusinessNZ Chief Executive Phil O’Reilly said the levy may threaten jobs.
“Our approach should be unlocking business solutions rather taxing business more,” he said.
As a “small open trading economy” New Zealand should participate in international emissions trading schemes.
Federated Farmers president Bruce Wills said the tax will make dairy farmers “less competitive” in international markets. . .
Less competitive means lower returns which means less export income which means less economic growth which means we’ll be less able to fund the first world education, health and other services we need.
However green they want to paint it, this is a red policy which will add costs, put downwards pressure on wages and threaten jobs.
Bernard Hickey told last week’s Alliance Group Pure South conference that the election will be close.
He then went on to list the policies that farmers could expect to adversely affect them under a Labour/Green coalition with whichever other left-wing parties they’d need to govern.
They included: capital gains tax, compulsory KiwiSaver and water restrictions and charges.
Those are three very good reasons to vote National and the Green carbon tax is another.
And Steven Joyce points out some inconvenient truths: