National’s subsidies for polluters to cost $73 billion
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11:36 am, October 14th, 2009 - 6 comments
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A newly released government paper shows that by 2050 government debt will be $54-$73 billion higher than it otherwise would be due to National’s subsidies for carbon polluters.
According to the paper:
Treasury has modelled these costs [the free allocations to polluters] and, while the model has limitations, they estimate that, if a 1.3% phase out rate is maintained into the long term, the proposed policy settings for intensity based allocation indicate a cumulative increase in Government debt of around 6-8% of GDP by 2050.
The Treasury budget model gives GDP out to 2050, when it will stand at $914 billion a year, or $403 billion in today’s dollars. 6-8% of that is $54-73 billion nominal, or $24-$32 billion in today’s money. The annual interest bill alone will be staggering.
Make no mistake. National’s subsidy to polluters today will be paid for by our children and grandchildren in the decades to come.
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The opposition parties stand united for an Aotearoa that honours Te Tiriti, rather than seeking to rewrite it. Labour, the Greens and Te Pāti Māori are working together against the Government’s divisive Treaty Principles Bill. ...2 weeks ago
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The opposition parties stand united for an Aotearoa that honours Te Tiriti, rather than seeking to rewrite it. Labour, the Greens and Te Pāti Māori are working together against the Government’s divisive Treaty Principles Bill. ...2 weeks ago
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Ka nui te mihi kia koutou. Ka mihi ki te mana whenua ko Ngāti Whātua Ōrākei. Kia ora and good morning everyone. Thank you Fran and Simon for inviting me here today, and importantly your leadership of this forum over several years now. I want to acknowledge David Gehrenbeck, Deputy ...9 hours ago
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Tēnā koutou katoa – it is a pleasure to be here today. I would like to begin by acknowledging the important leadership role you all play in ensuring a quality health system New Zealanders can trust. There is enormous clinical expertise in this room covering a wide range of disciplines. ...2 days ago
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“National’s subsidy to polluters today will be paid for by our children and grandchildren in the decades to come.”
future generations will be paying double – yes, in terms of the money – and, more importantly through the impacts of the government effectively encouraging pollution. oh, only as long as you produce more of course.
way to go government.
Do you believe anything that comes out of treasury.
Treasury are ideologues but they can do simple modelling.
No reason to think they dont’ have the basic fact right: we the taxpayer will be paying a lot for subsidising polluters forever ( yup – forever – the free carbon credit allocation decreases at 1.3% year on year, so never reaches zero)
Treasury may not be all we would like ideologically, but no one ever accused them of being innumerate! They can add, subtract, divide and multiply better than most. If they say this is a financial pig, it probably is.