1. JEANETTE FITZSIMONS (Co-Leader—Green) Link to this
to the Prime Minister
What kind of encouragement, if any, does she believe businesses will need to help achieve her goal for New Zealand to be carbon neutral and sustainable?
Rt Hon HELEN CLARK (Prime Minister) Link to this
Putting a price on carbon would be effective encouragement, as it would focus business on reducing emissions. That would be good not only for the environment but also for bottom lines through the impact of better energy efficiency and conservation.
Jeanette Fitzsimons Link to this
Does the Prime Minister agree that the hard part of a carbon trading policy such as was announced this morning is how to allocate the permits, and that the resultant political lobbying on this issue will delay action until well into the first Kyoto period; if so, will she consider adopting as an interim measure the Greens’ proposal, which could lead towards full carbon trading and put a price on carbon by the end of this year?
Rt Hon HELEN CLARK Link to this
I agree with the member that the transition issues are big issues, and that they have to be worked through. I am aware of the member’s proposal, and I encourage her to keep talking with the Minister responsible for Climate Change Issues. I sense that there is a lot of interest in the community, including in the business community, around the emissions trading concept. One hopes there can be a lot of discussion not only across sectors in the economy but across political parties, which might see us make faster progress on these issues than perhaps some pessimists might think is possible.
John KeyIs the Prime Minister aware that her Government, having ratified the Kyoto Protocol, has sat back and done absolutely nothing in relation to New Zealand carbon dioxide emissions, to the extent that those emissions have spiralled out of control, and that New Zealand now faces a liability of potentially billions of dollars; if so, will she be taking responsibility for that multibillion-dollar liability with New Zealand’s taxpayers?
Rt Hon HELEN CLARK Link to this
No, of course I am not aware of any such thing, as I am aware of a number of policies that were followed to deal with those issues. One of those issues that has now borne fruit is the Permanent Forest Sink Initiative, with the very substantial announcement from the East Coast in that direction. A number of new, second-generation policies are being worked on, and will work.
Peter BrownWill the Prime Minister tell us what her views are on the Australian Labor Party’s ideas of providing of interest-free loans for solar water heating; and, if she thinks that is a good idea, does she think there is any possibility of her Government taking up the idea?
Rt Hon HELEN CLARK Link to this
Yes, I have seen that initiative, and it is one of a number of possible things that can be done. The Government, for example, is in a programme of supporting the retrofitting of houses for greater energy efficiency. We passed the 30,000 mark in that particular programme a few weeks ago, and we have budgeted for another 12,000 in the present financial year. So all those kinds of initiatives are helpful in getting more energy efficiency and conservation in our homes.
Jeanette Fitzsimons Link to this
Does the Prime Minister agree with the OECD that New Zealand could make better use of economic instruments to achieve environmentally sustainable outcomes; if so, why is it that none of the options being floated for upcoming business tax cuts include any targeted incentives for sustainability or carbon neutrality?
Rt Hon HELEN CLARK Link to this
Yes, I think the OECD is right, and that is why the Government is, obviously, exploring very thoroughly the issue of emissions trading, which will need a cap if it is to be effective as a mechanism in reducing greenhouse gas emissions. I am also aware of the member’s long-time advocacy of eco-taxes. That is not something on which the Government consulted the business community in the recent business tax review, but I have no doubt it will keep coming back as possibilities for the future.
Jeanette Fitzsimons Link to this
Can the Prime Minister tell us whether it is Government support parties that are standing in the way of the tax cuts being used to foster sustainability?
Rt Hon HELEN CLARK Link to this
Not to my knowledge; it is simply that in the package of measures that were consulted on in the business tax review, those options were not put up for consideration. I certainly would not rule out consideration of them for the future.