National praises Howard's Kyoto Protocol stand

National and Act yesterday praised Australian Prime Minister John Howard for deciding not to ratify the Kyoto Protocol, and the parties again criticised the New Zealand Government because it intend to sign up.

Mr Howard said committing Australia to the protocol would hurt Australian businesses and cost jobs, the same reasons Opposition parties here have cited for their concerns.

The Government intends ratifying the international climate change protocol in August, binding New Zealand to measures starting in 2007 to reduce greenhouse gas emissions.

The proposed policies include a carbon tax on processes producing carbon dioxide, which could increase petrol and electricity costs.

National's finance spokesman, David Carter, said the Government's rush to ratify would be even more costly now Australia had opted out.

Australian businesses and farmers would not be burdened with extra costs and their exports would have a distinct advantage, he said.

"It's clear that Australian Prime Minister John Howard, unlike Helen Clark, is not prepared to put at risk Australian jobs or its economy.

"Despite all the spin by the Government, Kyoto ratification risks damaging New Zealand's economic, trading and export competitiveness," Mr Carter said.

Act deputy Ken Shirley said the Government's blind determination to ratify the protocol would worsen the transtasman investment disparity.

"He [Howard] correctly assesses the damage that ratification would do to the Australian economy with leakage of investment, business and jobs to non-ratifying developing nations," Mr Shirley said.

Both parties believe New Zealand should not ratify the protocol before key competitors like Australia and the United States sign up.

Energy Minister Pete Hodgson, in charge of the Government's climate change policy, said he was not surprised by the Australian announcement.

"We had anticipated the Australian Government had gone a bit soft on Kyoto," he said.

Under the protocol, countries can trade carbon credits and the Government argues New Zealand is in a good position because it has large forest areas which soak up carbon dioxide.

Mr Hodgson said it was puzzling that Australian ministers said the protocol commitments would be met in other ways.

"They won't be able to take part in any of the trading systems which reduce the cost of meeting obligations," he said.

"They are either not going to meet their commitments or they are going to meet them more expensively than if they had ratified."

He did not believe New Zealand industries would suffer because the Government was determined not to inflict economic damage.

Under the Government's proposed policy, revenue from the carbon tax would be recycled through the tax system, which could save people money.

- NZPA

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