True Cost Of ETS Will Now Be Revealed

From today New Zealanders are going to realise just how much the Government misled them on the full costs of the ETS, as households wake up to the fact that the $165 per annum – or $3.17 per week - cost that National has been spouting is a gross underestimate, ACT New Zealand Climate Change Spokesman John Boscawen said today.

"You only have to look at the numbers Nick Smith quoted for average household electricity consumption – 8000 kwh per annum – and average kilometres driven – 28,000 km per annum – to realise that the cost increases in electricity and petrol alone will cost householders $165 annually and that it does not take into account any indirect costs," Mr Boscawen said.

"However, the Reserve Bank advised that for every one dollar of direct petrol and electricity costs, households could expect to face an extra 75 cents in indirect costs as the initial increases flow through to food and all other goods.

"This means the full cost to households will be close to $300 per annum from today and National is foolish if it believes that New Zealanders won’t soon realise this.  Even the Ministry of the Environment’s own website: www.mfe.govt.nz makes it clear that the full cost exceeds $165. 

"Worse, despite the fact that animal methane and fertilizer will not come into the ETS until 2015, all farmers will face massive cost increases from today due to the ETS.  For example dairy farmers are liable for a cost of $3,900 per annum for fuel, electricity, and the cost of milk processing.  This rises to $10,200 per annum in 2015.  Only recently has Agriculture Minister David Carter belatedly acknowledged this. 

"As agriculture is our largest export sector and generates a substantial amount of wealth for our country, it is only right to be concerned about the impact this is going to have on our economy.  The last person that tried to put a tax on their number one industry was former Australian Prime Minister Kevin Rudd, and we all know what happened to him.
 
"This is the first ETS outside of Europe and by Nick Smith’s own admission is the most comprehensive in the world. 

"National’s ETS is environmentally pointless and economically irresponsible.  Regrettably from today, New Zealanders are paying the price," Mr Boscawen said.