Luxon: Remove climate subsidies
National leader Christopher Luxon says corporations should be lowering their emissions without any help from the Government.
But this criticism does not apply to the agricultural sector – the only industry exempt from the carbon pricing that is paying for various subsidies, and which is receiving $710m.
Luxon was criticising the Emissions Reduction Plan released by the Government on Monday, which earmarks $650m for a fund that helps businesses decarbonise by subsidising purchases of electric boilers and the like.
He labelled it ‘‘corporate welfare’’, saying businesses should be using their own money to decarbonise as they could anticipate a higher carbon price through the Emissions Trading Scheme.
‘‘The taxpayer shouldn’t be subsidising these big corporates to make emissions reductions. The corporates should be able to do that right now – they need to get on with and get with the programme, not wait for taxpayer money to subsidise them,’’ Luxon said.
Money for the funds do not come from the general tax take but from the Emissions Trading Scheme (ETS), which polluting industries pay into – as do drivers when purchasing petrol.
Luxon said corporations would be receiving enough of a signal from the ETS to start reducing emissions themselves.
There is no need for corporate welfare going on. We have an ETS scheme which sends messages and signals very clearly to businesses.’’
‘‘Corporations need to get on with him removing emissions right now.’’
But Luxon said his criticism didn’t apply to agriculture, who are receiving $710m in various funds from the scheme – despite not paying into the ETS, which is funding all of this spending.
Luxon said National supported that spending as agriculture did not have a technological route to efficiently decarbonise yet, so more research was needed. ‘‘ We need to be able to develop that – I think we should back ourselves as New Zealanders to actually go off and do that work. It does require use to invest in research and development to try and find those ways through.’’
Luxon said National remained supportive of the He Waka Eke Noa process, a collaboration between peak agricultural groups and the Government to find a way to price agricultural emissions outside of the ETS. Protest group Groundswell has come out heavily against He Waka Eke Noa.