New tax attracts negative feedback

At a time of concern over the robustness of both the New Zealand and global economies, one still has to ask whether it is a good idea to increase the tax burden for everyone.

The Government claims the carbon tax will result in reduced emissions of greenhouse gases and help stop global warming. Whilst it is easy to be cynical about this there is the question of what the alternatives were?

The Government and Climate Change Office have stressed the fact that the decision to introduce a carbon tax was the result of consultation with the public and businesses alike. However, it seems that many of those that did get involved (and there weren't all that many) actually opposed the carbon tax.

In fact, it appears that this approach was the least favoured by those who participated.

The main objections were:

* That the focus should be on changing people's behaviour to ensure reduced use of energy and increased use of renewable energy sources. The current proposals are unlikely to have this effect.

* A tax on emissions punishes bad behaviour but does not reward good behaviour.

* New Zealand is a small country and its emissions and any reductions it achieves are going to have little impact in the scheme of things. So why should New Zealanders bear this economic burden?

* This will have a negative impact on New Zealand's competitiveness which will result in trade barriers favouring importers and the loss of capital investment overseas.

* Many businesses have already taken steps to reduce energy consumption and many are bound by the Resource Management Act.

It would seem that these objections are still valid today.

Carbon tax legislation has yet to be introduced so is far from set in stone. Whether anything can be done to change the Government's thinking on this issue and what alternatives opposition parties have to offer is another matter. It is perhaps time for us all to take responsibility and to be sure that everyone has their say. Get involved in the consultation process now before it is too late.