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Emissions Trading Scam

August 31, 2010 by · Leave a Comment 

Emissions Trading Scheme:

The Emissions Trading Scheme is another tax on the New Zealand people. This will put up prices on Petrol, Electricity and all things necessary for life. Petrol has already now gone up 6c a litre. Food prices will also increase due to the costs of transportation going up. There will be a double whammy when GST going up in October.

Wider Ramifications:

The emissions trading scheme as a tax will increase inflation resulting in the reserve bank increasing the New Zealand interest rates. With GST also going up in October you will see another round of price rises which will continue to add pressure on the inflation rate. The costs of production will have a double increase in prices as well. This will continue to make New Zealand companies less competitive in the world economy.When interest rates go up this will also increase the New Zealand dollar rate. Again this will seriously affect the exporters in New Zealand. By placing an increased tax burden on the New Zealand Public this will continue to depress the New Zealand market with regards to consumer spending. Consumer spending accounts for around 66% of the spending in the local economy. You will continue to see retail shops struggle in the local market. Employment numbers will also go up as the recovery stalls and heads back towards a negative growth situation. You will see a continuing trend of more mortgagee sales as the increase in rates and the cost of living will continue to go up. The question is “Will the New Zealand Emissions Trading scheme save the planet? The answer is no it won’t and it will seriously affect those in the community who are already struggling to meet the cost of living.

Some Economists are saying that New Zealand will get out of the depression by an export lead recovery. This will produce more employment and lead to an increase in Government income through increased productivity. With these current Governments policies I see that the opposite will happen. By increasing the costs of production the New Zealand Government are further suppressing the market.

Recommendation:

My recommendation to this Government is to totally scrap the Emissions trading scheme. They should be looking for ways in which to bring down the prices of electricity rather increasing them with unnecessary taxes. The Government should look for ways to improve the efficiency within the sectors they do control. By doing this they will increase the productivity of the whole of New Zealand. In a future blog I will be looking at one sector in particular which could do with reform and will bring benefits to all New Zealanders.

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