Report Supports Need for More Consultation

5 November 2007

Castalia Report Supports Need for More Consultation

The Castalia report on the proposed emissions trading scheme released today raises some important questions that will need answers according to the Wellington Regional Chamber of Commerce.

“The report is timely, coming soon after that of the New Zealand Institute, and points to the need for more research and less haste,” said Chamber CEO Charles Finny.

“Like the Chamber, Castalia sees risks for New Zealand from the scheme because it rushes to expose the New Zealand economy to a high and potentially volatile carbon price.

“New Zealand must take care before taking any unilateral action to reduce greenhouse gas emissions or moving ahead of our trading partners.

“The impacts of the scheme will be consequential if it is got wrong. Now is not the time to rush major decisions. More consultation with business and much more analysis are urgently required before the scheme is enshrined in legislation.

“If economic activity responsible for emissions shifted offshore in response to higher domestic costs it would be harmful to our economy yet importantly, global emissions would not be reduced. In fact global emissions might increase if that economic activity were to shift to another economy with more lenient climate change policies.

“While not its first choice of policy instruments, the Chamber remains happy to work with the government in the design of the proposed emissions trading scheme. We have to get this right and if we need more time to do so we should delay the date for introducing legislation,” Mr Finny concluded.

ENDS

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