'Carbon neutral' policy added to scrap heap

National Party Leader John Key says Helen Clark's promise of 'carbon neutrality' is heading the same way as closing the gaps, taking New Zealand to the top half of the OECD, the knowledge wave, and economic transformation.

"It's pleasing the Government is finally waking up to the fact that households are hurting and new taxes at this time will only make matters worse. National would support the proposal to delay new fuel taxes to lift some of the pressure off struggling families.

"But climate change is another area where Labour's talked a big game and delivered little."

Mr Key says Labour's record on climate change speaks for itself.

"We still have growing greenhouse gas emissions, record deforestation, and a Kyoto liability which has turned around from a credit to a deficit.

"Meanwhile, the Whirinaki power plant, which was supposed to be used only in 1-in-60 dry-year emergencies, is burning millions of litres of diesel. The rhetoric simply does not match the record."

Mr Key says National supports the principle of the ETS and is following the select committee process closely. National has had reservations about the timing of new taxes on motorists and households when there has been no personal tax relief for so long.

"Labour's priorities are all wrong. Instead of taking steps to improve productivity and grow New Zealanders' after-tax incomes, it has spent $1.5 billion in the past few weeks on foreign affairs bureaucrats and a train set.

"Neither of those big ticket items will do anything to stop the flood of Kiwis leaving for Australia, improve after-tax incomes, or help families afford the groceries each week.

"Given that there is now considerable international debate about how 'sustainable' bio-fuels really are, Helen Clark must turn her attention to the new bio-fuels tax.

"This threatens to load even more costs on to the price of a litre of petrol. She should add that to the list of slogans that didn't work in practice."