The ETS’ cost ‘Unmerry-Go-Round’ from the PM down
Submitted by climaterealists on Wed, 26/05/2010 - 21:19
Federated Farmers Media Release
Federated Farmers is challenging the Government to put up its costs on the Emissions Trading Scheme (ETS) for independent scrutiny. In the space of four days, the Prime Minister, Minister of Finance and Minister of Climate Change, have all advanced different costs.
“Federated Farmers figures are fully defendable and is why we’re putting our figures out there for scrutiny,” says Don Nicolson, Federated Farmers President.
“On the morning of the Budget, the Hon Nick Smith’s office dismissed out of hand, Federated Farmers projected societal cost of the ETS at $527 million. Instead, an unnamed official put up $350 million as a cast iron sum but couldn’t substantiate it when asked by a reporter.
“It’s no wonder why because when the Budget was delivered last week, within the space of a few hours, this $350 million cost had inflated out to $378 million according to the Minister of Finance.
“But then we have the Prime Minister who only yesterday said the ETS’ cost ‘will only’ be $3 per household per week. Given there are over 1.7 million households according to Statistics New Zealand, he’s the most optimistic, putting the ETS’ societal cost at $267 million.
“So is the Prime Minister really saying that the total combined fuel and electricity bill for New Zealand’s 477,000 businesses is only between $83 and $111 million? That of course depends on whether you use figures put out by the Minister of Climate Change or those of the Minister of Finance.
“But if we take electricity impacts alone, Federated Farmers stands by its belief that electricity prices will increase by $276 million. That’s not far different from the Major Energy Users Group’s $240 million estimate they advanced in April.
“Petrol and diesel costs will rise by $252 million more too. These societal costs are however dwarfed by the $1.06 billion in core Crown costs the ETS heralds, along with its persistent 0.4 percent inflationary impact.
“This discrepancy between those who ought to know is truly alarming. As is the impact on agriculture that we have now revised upwards to $141 million in the first year from 1 July, using figures provided to the Minister of Agriculture.
“It’s time for the Government’s figures to be put up for robust independent scrutiny. The general public deserves nothing less,” Mr Nicolson concluded.
For further comment:
Don Nicolson, Federated Farmers President, 027 226 6331, 04 494 9190
USING FIGURES ATTRIBUTED TO THE MINISTER
Cost impacts on just fuel and electricity:
|
GENERAL ECONOMY DIRECT ETS IMPACTS
|
ETS COST IMPACT
|
|
Electricity - 38,862 Gwh (2008) worth $5.512 billion (five percent increase applied)
|
$275,600,000
|
|
Fuel - 3.4 billion litres of petrol plus 2.9 billion litres of diesel ($0.04 per litre increase applied)
|
$252,000,000
|
|
TOTAL
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$527,600,000
|
Source: Reports quoting MED figures
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A cost unmerry-go-round (from 1 July 2010):
|
|
||||
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Figures according to
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Societal cost
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Agriculture's burden estimated at $141m (as a percentage)
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Crown cost
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TOTAL ETS COSTS
|
|
|
Prime Minister $3 per household per week
(NZPA report, 24 May 2010) |
$267,321,600
|
53
|
$1,060,000,000
|
$1,327,321,600
|
|
|
Minister of Climate Change (Dominion Post 20 May 2010)
|
$350,000,000
|
40
|
$1,060,000,000
|
$1,410,000,000
|
|
|
Minister of Finance (Budget 20 May 2010)
|
$378,000,000
|
37
|
$1,060,000,000
|
$1,438,000,000
|
|
|
Federated Farmers estimate
(Using MED figures for fuel/electricity (2008)) |
$527,600,000
|
25
|
$1,060,000,000
|
$1,587,600,000
|
|
· Statistics New Zealand (March 2010) states there are 1,713,600 households
· Statistics New Zealand (February 2009) states there are 477,000 businesses
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