Media Release Monday, December 3rd, 2001

Kyoto will cost households $1000 each a year: report

The NZIER report released this morning in effect says every New Zealand household will be asked to pay about $1000 a year for the next 15 years to ratify the Kyoto protocol.

The Employers & Manufacturers Association (Northern) says its important for New Zealanders to realise the $1 billion a year cost, approximately, identified by the Institute for Economic Research to introduce the protocol's requirements will end up as a cost on the household budget.

"Its not farmers or business only, or even so called big business that will bear the major costs inherent in implementing Kyoto," said Alasdair Thompson, EMA's chief executive.

"Increases in the cost of energy will hit consumers spending power at the same time as damaging employment opportunities. Energy Minister Hodgson has said electricity will go up seven per cent and petrol up 11 per cent.

"These negatives will be exacerbated because our export competitiveness will also be undermined. New Zealand is far more exposed to the costs of reducing greenhouse gases than our trading partners.

"Business is alarmed that we are proceeding along a path with severe economic repercussions without doing due diligence on the possible consequences.

"We cannot afford to implement the Kyoto agreement as an article of faith.

"Government must undertake to do far more homework on the impact of the Protocol on our standard of living, not plough ahead with ratifying it next year without full public understanding of the commitment being asked of us all."

Comments: Alasdair Thompson tel 09 367 0911 (b)

09 303 3951 (h)

025 982 024

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