Govt plans lack a mandate
The cost of living is on the rise, due largely to the record prices that New Zealanders are now paying at the petrol pump. Petrol has hit $2.40 and more for the first-time, and then the ‘no new taxes’ Labour government imposed a new petrol excise tax, adding another 3.5 cents per litre, plus GST. This means most motorists are now paying well over $100 to fill their tanks.
And to make matters worse, the government is planning a 12.1 per cent increase in the average motor vehicle ACC levy. This will add a further 1.9 cents, plus GST, to the cost per litre, taking the total ACC levy to 7.9 cents a litre.
ACC is consulting on this proposal, and a decision on the levy will be made by the government in December.
The Automobile Association estimates that of the price of petrol at the pump, just over a quarter is the actual cost of refined fuel, and around 50 per cent is tax. Of that tax, some 67 cents per litre is fixed excise, 4.7 cents is an Emissions Trading Scheme carbon levy, and GST is, of course, added on top. In addition, Aucklanders have to pay an extra 10 cents a litre as a regional fuel tax.
But this is not the end of the matter. Labour has already announced there will be two more 3.5 cents a litre excise tax increases, one in 2019 and the other in 2020. In addition, further increases are also likely as part of the government’s zero carbon programme.
According to the Productivity Commission, to achieve their zero carbon goals, the current 4.7 cents a litre Emissions Trading Scheme carbon levy will need to be increased to around 55 cents per litre. If such an increase was implemented, it would take the average price of petrol to over $3 a litre — and have a knock-on effect on all other goods and services as well.
The party responsible for pushing the extremist position on climate change is, of course, the Greens. Their policies are dangerous, and could do considerable damage to our economy. As fanatical idealists, they appear blind to the devastating impact their de-industrialisation agenda would have on living standards and people’s lives.
But it’s not just the Greens that are to blame for what’s to come — Labour is calling the shots, and New Zealand First is supporting them.
What’s worse is that their zero carbon plan never received a mandate from voters. All we got at election time were glib slogans. No one provided details of what was being proposed.
When Jacinda Ardern failed to spell out the details of her capital gains tax during the election campaign, the decision was made to only enact the policy if the public supported it at the next election. Shouldn’t it be the same for zero carbon policies?
Now that the details are emerging from research reports, such as the possibility of a 55 cents a litre carbon tax on petrol, or that pastoral farming outputs would be reduced by 60 per cent, surely, for changes of this magnitude, a mandate should be obtained from voters at the next election.
"As fanatical idealists, the Greens appear blind to the devastating impact their deindustrialisation agenda would have on living standards and people’s lives. "