Yet another public dispute between David Parker and Don Elder. Thanks NZPA and thanks Don Elder. Your courage is to be admired.
Mr Elder said the bill was not only about climate change, but was also the most far-reaching taxation legislation since the 1980s.
He said no one had seemed to consider the possibility that even if pollution targets were met, billions of dollars would end up in the Government’s coffers.
The ETS, as designed, would punish polluters for all their emissions, not just those above the 1990 level set by the Kyoto Protocol.
Even if emissions were reduced to 1990 levels by 2025/2030, which he felt was unlikely, it would mean the Government would still collect $20b over that period.
He said the $20b figure assumed a low price for carbon — $22 a tonne — and if it was replaced with a “realistic figure” of up to $200 a tonne the windfall gain over the period would be in the region of $80b.
Climate Change Minister David Parker said he fundamentally disagreed with the analysis and said the Government would never allow such a scenario to occur.
