Tag: carbon tax

Hot Air: the sorry tale of climate policy in New Zealand

This guest post is by Alister Barry, producer and co-director of the new documentary Hot Air, which will be premiered in Wellington next week. Hot Air is screening in the New Zealand International Film Festival around the country over the next month.

Hot Air is a story of compromise, broken promises and corporate pressure, of misinformation and pseudo-scientific propaganda. It’s also a story of good intentions. The 1989 Labour government under Geoffrey Palmer began to map out the first emissions policy. In the 1990s Simon Upton, the National government’s minister responsible for climate change policy tried to put a carbon tax in place as did his successor Labour’s Pete Hodgson. After 2005 David Parker struggled to pass an emissions trading scheme.

I began work on Hot Air in 2009 thinking it might take a couple of years. I recall one of my partners saying, “You better get it done quickly, because within a few years the film will be out of date. Climate change will have been confronted and dealt with.” No such luck.

I soon found that while there have been some books written about the history of the politics of climate change in the UK, the US and elsewhere, there was no comprehensive account telling the New Zealand story. I spent a lot of time in the National Library doing the basic slog of getting the history down on paper. Then I had to condense it into a documentary script before beginning actually making the film.

One benefit of the long gestation period was the unexpected number of key figures that agreed to be interviewed for the film. Experts from both the environmental and economic fields, newspaper editors, businessmen, and a wide range of political figures including National’s Simon Upton, and Labour’s Pete Hodgson & David Parker, all one-time Ministers of Environment, contributed. Many of the major players (particularly Labour’s ruffled former Minister of Environment, Pete Hodgson) clearly welcomed the opportunity to tell their stories, as well as vent some frustrations!

Editing has taken a couple of years finding and fitting together archive footage with the original interview material and condensing that into an informative, and we hope entertaining film. Co-director and editor Abi King-Jones has done a masterful job creating a film that is a pleasure to watch.

On one level the film attempts to provide an understanding of the political landscape on which those of us who want to see some effective action on climate change will have to fight, on another level it is a case study of the extent to which power in our society has shifted to the corporate elite and away from the rest of us.

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Taxing Rodney: Hide’s carbon hypocrisy

Untroubled as he is by the responsibilities of public office, or any apparent need to appear consistent, the former leader of the far-right ACT Party, Rodney Hide, attempts to ridicule the Green Party’s new carbon tax policy in his column at the National Business Review this week. You can’t actually read the column, because it’s behind a paywall, but the ever-helpful Cameron Slater at Whale Oil comes to the rescue by copy/pasting all the best bits. Here’s Hide, 2014 style:

We desperately need the Russel-Norman. A tax to deal to a problem bigger than World War II, the Depression and the Plague all at once.

We must go Green, save the planet and get rich. What a plan! What a vision!

Years ago an old man grumbled to me. GST. Bah. He didn’t think taxing food was right. “What’s next? The air we breathe?” Nope. Our new tax is on a trace gas that we all breathe out.

But those of us with functioning memories will recall that back when Rodney was ACT leader and a minister in a National-led government — only six years ago — he was advocating that the Emissions Trading Scheme be dropped and replaced by — wait for it — a carbon tax. Here’s Rodney in 2010, talking to Guyon Espiner on TV1:

We don’t think we should be doing anything, but what we’ve said is, if you were going to do something, it would be far cheaper and far easier just to put a low tax across fossil fuels. That would achieve the same result, you could also subsidise forestry, and we’ve offered that up to the National Party as an alternative that would be easier. Why would it be easier? It would administratively much less costly, because you’d just put a tax across rather than try and operate a trading mechanism…

I think I sort of understand what’s going on in Rodney’s head. When he was trying to be an electable politician, he at least made an effort to make sense. Now that he’s just another libertarian ideologue with a soapbox he can say whatever he wants, and the green-hating rabid right so ably fed and watered at Slater’s blog will lap it up. Meanwhile, out in the real world, perhaps a carbon tax’s time has come…

TDB Today: Put a proper price on carbon

The Green Party’s shift to a carbon tax as their preferred measure to to bring down carbon emissions opens up some interesting possibilities, as I discuss in my Daily Blog post this week: Put a proper price on carbon or we’ll pay a proper price.

As long as governments have a completely free hand, and are backed by vested interests with deep pockets, they’ll screw up carbon policy. They’ll do it at every opportunity. So let’s take some of the levers out of their hands, and give them to someone with a legislated requirement to act in the best interest of all New Zealanders.

We do it for economic policy through the governor of the Reserve Bank of New Zealand. Why not for emissions reductions?

NZ Greens launch new climate policy: replace ETS with carbon tax and dividend

The NZ Emissions Trading Scheme has failed and should be replaced by a carbon tax, Green Party co-leader Russel Norman told the party’s annual conference yesterday [NZ Herald, Stuff]. Outlining the Green’s new Climate Protection Plan (pdf) Norman told delegates that the government’s mismanagement had “hollowed out and weakened [the ETS] to the point of redundancy, accelerated deforestation and driven up emissions.” If in government after September’s general election, the Greens would replace the ETS by a suite of policies built around a levy on greenhouse gas emissions, with revenues recycled to business and consumers through cuts in income taxes.

The key points of the new policy are (from the policy document):

  1. Set New Zealand on the path to be carbon neutral by 2050.
  2. Establish a Climate Commission to provide expert and independent advice to the government on: carbon prices, carbon budgets, and complementary measures to achieve carbon neutrality by 2050.
  3. Phase out the failed Emissions Trading Scheme and set an initial price on carbon:
    $25 per tonne on CO2 equivalent emissions for all sectors except agriculture and forestry. Dairy emissions will pay $12.50 per tonne. Forestry will be credited at $12.50 per tonne.
  4. Recycle all revenues raised from a carbon charge back to families and businesses through a $2,000 income tax-free band and a one percent company tax cut. A Climate Tax Cut. Households will be better off.
  5. Introduce a suite of complementary measures to support the rapid transition to a carbon neutral economy.

The tax and dividend scheme has been costed by independent economists BERL (report here). An average household will be over $300 better off per annum.

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Brother, can you spare $3.10 for a tonne of carbon dioxide?

cup of coffee In which Mr February (aka Simon Johnson) looks at the uselessness of the report of the Finance and Expenditure Committee on the Climate Change Response (Emissions Trading and Other Matters) Amendment Bill, people begging on Lambton Quay in Wellington, and the fact that the spot price for a tonne of carbon dioxide is the same as for a flat white.

Have you heard the old Tin Pan Alley song “Brother can you spare a dime?” The experience of poverty and the Depression in America summed up in a popular song. The lyrics were written by Yip Harburg, and the music by Jay Gorney in 1931. The version by Al Jolson is very well known, but I like this version by Charlie Palloy and his Orchestra.

I usually start most weekdays getting off a bus on Lambton Quay. From the bus stop I walk along to work looking forward to the first coffee of the day. I usually note how many people are begging. There are almost always a few people begging on Lambton Quay. Who says NZ is not in a depression? Not Paul Krugman. ‘Brother can you spare a dime’ is alive and well.

Except it’s sad cardboard signs saying ‘Homeless and need help’. Also it’s at least $3 to $4 for a coffee, not a dime. Not for a long time.

The other price that’s less than the cost of a flat white is the spot price of carbon dioxide in NZ. Carbon trader OMF reports spot prices each day at CommTrade Carbon. Guess what? The last trade of a New Zealand Unit (a tonne of carbon dioxide) was $3.10.

Continue reading “Brother, can you spare $3.10 for a tonne of carbon dioxide?”