Friday, April 23, 2010

The Emissions Trading Scam

While all New Zealand's major trading partners have wisely suppressed their own Emissions Trading Schemes (ETS), this country will be blindly forging ahead from the 1 July with its own "world leading" ETS that will threaten the viability of many small (tourism) businesses.

The pointless redistribution of wealth from the productive will do nothing to enhance the environment, will cost jobs and will place an unnecessary burden on households and businesses.

Ignoring usual CPI increases AND the pending rise in GST:
"The Treasury forecast that the immediate impact of New Zealand’s ETS will be a 5 % increase in the price of electricity and a 4c/litre increase in the price of petrol.

These increases are forecast to at least double again from January 2013 with total increases of 10% in electricity and 8c/litre for petrol, solely from the ETS.

The Reserve Bank forecast that prices overall can be expected to increase from 1 July by 0.4% solely on account of the electricity and petrol increases and the pass through of these onto consumers. While the government has stated they will adjust superannuation and benefits should GST increase, no such assurance has been given in respect of the ETS to New Zealand superannuitants."
The Tourism Industry Association seems to support the imposition of an ETS in principle, however would like further consultation, scoping of costs and alignment with Australia before implementation.

Adopting a position on ETS is more than likely beyond the capacity of the Motel Association of New Zealand.

So, what organisation can small tourism business operators turn to for advocacy. Well, the Auckland Chamber of Commerce has stepped into the void and have adopted a clear position on the ETS - they want it stopped!

We suggest that you respond to the memo sent out to their members yesterday - we have:
Stop this new tax now.

The Emissions Trading Scheme will mean your business is likely to bear an extra 3-5% in costs from 1st July: this new tax must be stopped.

We are only now beginning to recover from a period of extreme economic pressure. Charging businesses with a new tax could be crippling. Recovering this cost from consumers could be difficult. In addition, it is a cost that will be inflationary.

Our importers and exporters will be disadvantaged because our competitors will not have this additional tax.

The new tax must be stopped. To make your business heard on this critical issue, please click here to submit a message to Government.

By clicking on this link you will generate an email to Prime Minister John Key. You will be able to send with one click or edit first if you prefer.

Kind regards
Michael Barnett
Chief Executive

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