ETS will cost Kiwis $527 million in its first year

ETS will cost Kiwis $527 million + in its first year

Federated Farmers has calculated the Emissions Trading Scheme will directly cost New Zealand businesses and families $527 million in its first year. Indirect cost impacts will likely add tens of millions more.

“Government seems to be ignoring warning signs every bit as real as the warnings of icebergs, Captain Smith received during the Titanic’s ill-fated maiden voyage,” says Don Nicolson, Federated Farmers President speaking from Adelaide.

“Federated Farmers estimates the ETS, in its first year, will directly add $527 million to the cost of fuel and electricity. That adds over half a billion dollars more for doing business here than across the Tasman. It makes a mockery of the ETS’ supposed harmonisation with Australia.

“That $527 million figure doesn’t count the cascade effect these fuel and electricity increases will have on the billions worth of goods and services all Kiwis, not just farmers, consume.

“These costs will snowball through the economy as New Zealand imports around 3.4 billion litres of petrol and 2.9 billion litres of diesel. The four cents per litre the ETS adds puts $252 million more on the cost of transportation from 1 July.

“My advice is to fill the tank to the maximum on 30 June because prices will rise.

“In 2008, New Zealand consumed some $5.5 billion worth of electricity so the five percent increase the ETS brings, will add $275 million more to the electricity bills of businesses and households from 1 July.

“That’s only the start as the ETS progressively enrols other sectors. These large sums put into perspective the crumbs being put into research.

“It’s also a lie to claim that agriculture is getting off the ETS Scot-free. Pastoral agriculture’s share of this massive burden is no less than 16 percent of direct ETS costs from 1 July. I can tell you farmers will not stand for this latest raid on our chequebooks.

“Yet speaking to ordinary Kiwis on the street, there’s no appreciation of the costs the ETS will spring upon them from 1 July. They are frankly shocked to discover their transport costs and power bills will spike in just a few weeks time.

“It doesn’t take a rocket scientist to figure out that grocery and other bills will rise off the back of the ETS. It’s easy to average costs but no cost is in fact average.

“It’s time for Government to act in New Zealanders interests and suspend the ETS instead of taking our economy into unchartered waters,” Mr Nicolson concluded.

ENDS

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