Dr Smith Confuses EU With New Zealand On ETS

Environment Minister Dr Nick Smith’s claim that 29 individual countries have implemented an ETS is flawed at best – Dr Smith is confusing an ETS across an entire trading bloc with one that affects an individual country, ACT New Zealand Emissions Trading Scheme (ETS) Spokesman John Boscawen said today.

“The European Union ETS increases costs across an entire bloc of countries – putting them all at an equal disadvantage.  New Zealand, however, will be disadvantaged by having an ETS when none of our major trading partners have similar schemes,” Mr Boscawen said.

“Another important difference is that the European ETS excludes petrol – and when France tried to include petrol with a carbon tax earlier this year, Present Sarkozy abandoned the move after suffering huge losses at regional elections.

“It must also be remembered that the EU ETS has been structured in such a way that there have been massive exemptions and allowances so it doesn’t apply to large parts of the European economy.

“Dr Smith repeatedly – and proudly – told the New Zealand public and Parliament last year that we would be the first country in the world to have an all-sectors, all-gasses tax.  Now, six months on – with Australia deferring its ETS until at least 2013, no progress in the US, and Angela Merkel having second thoughts on European world leadership – Dr Smith now seems to want to forget his stand on world leadership.

“The fact is that the New Zealand ETS will impose a significant cost burden across all Kiwi families, businesses and exporters.  Our three major trading partners – Australia, China and the US – do not have an ETS.

“Proceeding on July 1 will catapult us into world leadership – putting businesses and consumers at risk at a time when we’re still coming out of recession and have high unemployment,” Mr Boscawen said.