May 20, 2008

Winnie The Lapdog Stays On The Lap

Is Labour seeking to boost Winston First's chances of re-election with some handouts for the low paid and elderly to mitigate the effects of higher electricity bills? Will Winston in return save the Government's bacon on the ETS? Interesting article in The Press.

What doesn't make sense to me is the impact such a policy mitigating price effects will have on the ETS. Isn't it all about incentivising a change in behavior? How will behavior change if people feel no impact? How will the Greens react to these reported moves behind the scenes?