Wall St Journal criticises NZ's carbon programme

An editorial in the influential Wall St Journal today accuses New Zealand of "green PR gone wild", and says our stance on carbon emissions will cost the country's economy dearly.

The article says the "nominally conservative government" run by Prime Minister John Key is uncertain about how to apply environmental taxes. It notes that, having adopted the cap-and-trade approach to battling air pollution, PM Key went on to order a committee to look into the issue - the Emissions Trading Scheme Review Committee.

The writer says the report's findings show "how deep today's green religion runs".

"Their report, issued last week, doesn't question disputed United Nations climate-change assumptions, nor explain the cost to the average Kiwi of taxing every corner of the economy — especially agriculture, the country's biggest export.

"The authors brush aside the fact that New Zealand only emits 0.2 per cent of global emissions, calling it "small," but "not insignificant." Thus Wellington should "act now" to reduce emissions "to protect our international reputation, particularly in the areas of trade and tourism," says the Journal.

"Over the past few years", says the opinion piece, "New Zealand has experienced severe deforestation. Economic activity in the sector has plateaued."

Their point is that New Zealand industries, by reducing their competitiveness, will increasingly find it harder to compete at home and abroad.

The right-wing views of the WSJ echo the views of other publications, such as the Financial Times (FT), which once wrote: "carbon markets leave much room for unverifiable manipulation. Taxes are better, partly because they are less vulnerable to such improprieties." (April 2007)

The Journal editorial calls on the government here to put aside concepts that are "making the country poorer".

"Instead, Mr Key's government would do better by focusing on encouraging strong economic growth to support a vibrant, entrepreneurial society. That way, tourists may want to come to New Zealand and stay."