Chamber has Serious Questions on Carbon Neutrality

Media Release

13 February 2007

Chamber has Serious Questions about Carbon Neutrality

The Wellington Regional Chamber of Commerce has welcomed the Prime Minister’s vision of a sustainable New Zealand, as outlined in today’s statement to Parliament, but warned of the need to consider potential costs to the economy of going down the carbon neutral track.

“The Chamber is strongly supportive of environmentally sound policies and has been championing a bi-partisan approach in this area. However, we want to be reassured that some of the goals announced today have been well thought through”, said Chamber CEO Charles Finny.

“The Government has several important discussion documents out for consultation at present on the policy response to climate change. We and many of our members are contributing actively and positively to this process. We are a little surprised that while this process is going on, the Government should signal such a clear determination to rush in the direction of carbon neutrality. This would seem to pre-empt a number of decisions pending from the discussion documents.

“One concern we have is that there is no evidence of cost/benefit calculations having been prepared for the policies being consulted on. This work needs to be done. Accepting carbon neutrality as a policy goal likewise requires very careful analysis. What will the cost to the economy, and to particular sectors of the economy, be in delivering such a goal, particularly if we are to move in this direction in a unilateral way?

“We are also concerned that policy is being linked to dubious and clearly protectionist policy emanating from Europe. Does New Zealand really have to move to carbon neutrality to maintain access to non-carbon neutral Europe?” Charles Finny continued.

“The Chamber is looking forward to early engagement with Government on these issues. They are a serious concern for our members” Charles Finny concluded.

ENDS

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