Carbon tax back on agenda

Published: 4:17PM Tuesday November 18, 2008 Source: ONE News

  • Print this article
  • Text size + -

National is being accused of flip-flopping on a key policy before it has even been sworn into government. 
 
The criticism comes after Prime Minister-designate John Key suggested National is warming to the idea of a carbon tax, despite having previously rejected the idea.
 
National campaigned to dump the proposed carbon tax three years ago. But it now seems Key is a bit more keen on the idea.

"We've campaigned pretty strongly for a reformed Emissions Trading Scheme but if a strong argument can be put up for a carbon tax then we'll look at that," Key says.

The Emissions Trading Scheme caps pollution rates so industries either stay under the limit or buy credits to compensate for breaching it. 

A carbon tax is a pollution tax, charging people more for using petrol, gas and electricity.

"The problem with a tax is that it doesn't necessary change behaviour. So we prefer a market- based solution which is what an emissions trading system is," Key said last year.

National has had to reconsider carbon taxes because of its support agreement with Act, but it seems Key is warming to the idea.

"I don't want to prejudge it. I'm simply saying we put it in there in good faith, we'll look at it and on evidence consider its merits against a reformed ETS and some sort of hybrid model," he says.

Critics say it's a flip-flop.

"A major u-turn before the government is even sworn in. National bitterly opposed the carbon tax, now it's proposing it," says Phil Goff, Labour leader.

Greens co-leader Jeanette Fitzsimons questions National's stance on the carbon tax.

"Where were they when it was on the table because it's not on the table now, but maybe it's coming back on the table. We don't know," she says.

There's also concern the decision to put the Emissions Trading Scheme on hold is creating uncertainty with millions of dollars of overseas investment in forestry being postponed and plans by one of the world's biggest players in the carbon market to set up in New Zealand also going on hold.

But Key says it's vital to take time to get the scheme right or the cost to all of us could be much greater.

  • Print this article
  • Text size + -
  • more...

Politics News Video

rss Politics News

Most Popular

  1. Michelle Obama sings Beyonce's praise
  2. Rain and wind to lash parts of South Island watch
  3. Fog strands travellers in Auckland today
  4. Gigantic telescope could bring revolution - expert watch
  5. Marchers determined to save ChristChurch Cathedral watch

rssLatest News

Advertising

How do you want your news?

  • Mobile Devices

    TVNZ is available on mobile phones: Text TVNZ to 8869.

  • News Feeds

    See when TVNZ have added new content. You can get the latest headlines anywhere.

  • Podcasts

    Enjoy TVNZ on the move - a wide range of programmes and highlights are available.