3. JEANETTE FITZSIMONS (Co-Leader—Green) Link to this
to the Minister of Finance
Does he agree with leading economist Nicholas Stern that “the development of a low carbon economy can provide new jobs and new opportunities for innovative businesses”?
Hon BILL ENGLISH (Minister of Finance) Link to this
Successful innovation and adapting to new business circumstances and conditions are absolutely pivotal to creating new jobs. In this regard, how the economy adapts to future climate change, wherever that may lead, is, in principle, no different from any other economic change, and there are a considerable number of such forces now. That is why this Government is intent on building a flexible, productive, and competitive economy capable of weathering whatever storms lie ahead.
Jeanette Fitzsimons Link to this
If that was a qualified yes, then which measures, if any, in the Government’s stimulus packages so far will create jobs from the development of a low carbon economy?
We have not specified any particular jobs that will be related to the creation of a low carbon economy, but, as the member knows, this Parliament, like others around the world—notably that in Australia—are involved in a discussion about the most appropriate mechanism for carbon pricing. In New Zealand, it is partially in place now, and that will affect the decisions that businesses make that are consistent with lowering the carbon content of the economy.
Moana MackeyDoes the Minister agree that incentives such as research and development tax credits are important for assisting innovative businesses to develop low carbon technologies; and is it true that the Government is regretting its repeal of the previous Government’s tax credits and is scrambling to find a similar replacement?
This Government is involved in a wide range of activities to undo bad decisions made by the previous Government. One of those is the research and development tax incentive.
Jeanette Fitzsimons Link to this
Why did the Minister tell the Finance and Expenditure Committee last week that “I think one crisis at a time might just do most Governments.”, when Stern and many others—Governments and UN organisations—have clearly shown that one can deal with both the climate crisis and the economic crisis with the same measures; and is it not time that his Government learnt to walk and chew gum at the same time?
As the member will know—because I have responded on behalf of the Prime Minister to her questions in the same way—the Government is contemplating measures that will have the effect of creating jobs as well as assisting households with, for instance, their insulation needs, thereby reducing their energy consumption. But we do believe that some of the rhetoric that we have heard from other countries is yet to be proven. In the end, it is yet to be shown whether, when large numbers of people are losing their jobs, other countries will choose any real policies other than those that will protect jobs or create new ones from any source, regardless of whether they are green or carbon neutral.
Jeanette Fitzsimons Link to this
Is the Minister aware of research done by the International Monetary Fund demonstrating that for every dollar spent on tax cuts there is a fiscal multiplier of less than one, whereas every dollar of Government spending can multiply 1.4 times? Is this not another argument for investing in “Green New Deal” solutions, instead of giving tax cuts to those earning hundreds of thousands of dollars a year?
That is an argument for 100 percent tax, and we do not go along with that. Sometimes we disagree with the International Monetary Fund, and I know that that member often does—in fact, most of the time. Part of this is about who makes the best decisions. Our view is that part of the case for lowering taxes is that in those circumstances New Zealanders get the chance to decide whether to reduce their debt, which many of them should be doing, or to increase their consumption in order to help the economy. We prefer that to a rigid pathway towards a green economy that has been chosen by bureaucrats and a few politicians.
Does he agree with the Prime Minister that there is a possibility that climate change science may deteriorate and that climate change sceptics may be right, and does he think that the Prime Minister’s comments to Investigate magazine are creating uncertainty and discouraging the creation of new jobs?
Yes, I do agree with the Prime Minister, particularly when I read the whole quote. But I have to tell that member that in the last few weeks no one in my electorate has come up to me and asked this Government to pursue the carbon-neutral sustainability workshop strategies written by Labour. What they are asking us to do is everything we possibly can to protect their jobs and create new ones.