National in push to axe carbon tax

National has launched a campaign to axe the carbon tax in the face of uncertainty about its future.

The tax, which Labour planned to introduce from April 2007, is being reviewed after post-election negotiations with United Future and NZ First resulted in the concession.

Legislation is needed for the tax and the Maori Party could hold the key to giving Labour the numbers in Parliament should it push ahead.

The Maori Party's stance so far has been to support the thinking behind the tax, but it's conditional on who it might affect.

United Future leader Peter Dunne - who is also the Revenue Minister - said he was delighted National was getting behind his party with a campaign against the tax.

National's campaign will include a postcard drop to thousands of households, a petition at service stations, and regional and industry visits by MPs. Leader Don Brash said in launching the campaign yesterday that it wanted Labour's "latest tax grab" to go the way of the fart tax which was axed in the face of protests.

"The carbon tax will increase the cost of living, undermine the competitiveness of business and achieve nothing for the environment."

Dr Brash said New Zealand was the only country in the world to impose a carbon tax despite its emissions being just 0.4 per cent of the global total. There was no evidence to suggest the tax would reduce emissions.

Mr Dunne said he was confident any reasonable independent analysis would "kill the carbon tax stone dead".

Dr Brash said National had strong allies in its opposition from organisations such as Greypower, Business NZ, Treasury and Federated Farmers, and it would continue holding NZ First and United Future to their election promise to oppose the tax.

He said it was also increasingly clear the Kyoto Protocol, which New Zealand has ratified, was in difficulty.

National environment spokesman Nick Smith said the National government in 1999 decided an emissions trading system, not a carbon tax, was the way forward but only when there was a truly international agreement.

Greens leader Jeanette Fitzsimons said the campaign was aimed not at improving ordinary New Zealanders' lives but at saving big business from having to pay for their pollution. 
 

Cost claims

National says tax will:
* Increase petrol 6c a litre, diesel 7c a litre
* Add 6 per cent to the cost of electricity, 7 per cent to gas
* Increase grocery costs by 1.3 per cent, public transport costs 1.4 per cent

Labour says
* Cost a typical household about $4 a week more for electricity, petrol and other fuels
* Raise $360 million a year.