northland chamber

Northland Chamber of Commerce – Climate Change, Emissions Trading and Tax

It is possible to grow the economy without having detrimental effects on the environment. In fact, economic growth is good for the environment because a strong economy makes environmental care more affordable.

Likewise, concern for the environment can often be good for the economy, for example, sustainable management of scarce natural resources. Many of the ways in which businesses operate efficiently have environmental benefits. For example, cost savings through recycling, reduced use of consumables, and energy efficient practices are ways in which the environment and business overlap.

We consider that the increasing interest in environmental issues amongst the population at large is working in favour of environmental sustainability generally. Voluntary and market-driven practices are effective here – for example, businesses know they can achieve a market advantage in offering consumers “sustainable” products. This makes government intervention to protect the environment less necessary than it would otherwise be.

The Northland Chamber is strongly supportive of sound international measures to address the risk of climate change by reducing global greenhouse gas emissions. New Zealand must do its bit on this critical issue, but measures must recognise that with only 0.2% of global emissions, New Zealand is too small for its actions to have any significant impact on total emissions. While leading the way has some benefits in terms of international kudos, the New Zealand economy must not be jeopardised for this benefit alone.

We are opposed to the proposed Emissions Trading Scheme in the current form. This will result in significantly higher energy and transport costs for New Zealand businesses that our trading partners will not have to face.

These costs will reduce New Zealand’s international competitiveness and result in a loss of investment and jobs as companies contract activity, close down or relocate offshore. If businesses do relocate offshore, this will do nothing to reduce global emissions. In fact global emissions might increase if that economic activity were to shift to an economy with less efficient practices or more lenient climate change policies.

There are cases where increased New Zealand production and corresponding emissions could potentially reduce global emissions. For example, agriculture is a high emitting activity but New Zealand agriculture is less carbon intensive than our trade partners’ and so we should be producing more of the world’s food here.

We believe a broad-based greenhouse gas charge accompanied by a corresponding reduction in income tax should be considered as an alternative to the emissions trading scheme. This would be more transparent and result in much more stable energy prices.

Some New Zealand companies can and are benefiting from moves to voluntarily decrease their emissions, from both a cost savings and a market advantage perspective. Being ahead of their competitors, as carbon becomes more constrained, would also produce benefits. We fully support this and are encouraging our members to voluntarily decrease emissions.

For the2008 General Election the Northland Chamber of Commerce are encouraging Northland Businesses to look closely at candidates and party policies and vote for policy that includes

- Not introducing emissions trading schemes until our major trading partners do the same

- Focusing on a broad based greenhouse gas charge but accompany that with a corresponding reduction in income tax

The Northland Chamber of Commerce is the networking, education, advocacy and marketing group for Northland business, and is part of a nationwide network of 30 and a world-wide movement of 21,000 chambers. Subscription to the free fortnightly chamber e-news can be arranged on info@northchamber.co.nz. Enquiries to 09-4384771 or www.northchamber.co.nz, www.kaiparachamber.co.nz and www.farnorthchamber.co.nz

You can have a say on this by going to the Northland Chamber of Commerce Feedback website on www.northchamber.blogspot.com