Labour must be honest on plans to raise energy costs

Climate Change Issues Minister Nick Smith says Labour should be upfront with New Zealanders that its climate change policy would immediately put up the price of electricity and fuel.

“Labour is being quite hypocritical in protesting about power prices and the cost of living when its publicly stated policy would immediately put up the price of both fuel and electricity,” Dr Smith said.

On the issue of the Emissions Trading Scheme, Labour announced on 24 December 2010 that ‘The Scheme should be scaled up to full obligation immediately’. This would increase the price of electricity by 5% and the price of petrol by 3.1cents/litre.

“This Government has been very mindful of the impacts of climate change policy on the cost of living and that is why we moderated the ETS to halve the price impacts on consumers and businesses. We have further stated that we are cautious of ramping up the scheme to a full obligation until other countries like Australia make progress in pricing emissions,” Dr Smith said.

“Labour lacks credibility in complaints over power prices when they grew by 8% each year from 1999 to 2008 and when its publicly stated climate change policies would immediately add another 5%.

“Labour needs to be upfront this year in telling voters that a vote for it is a vote for an immediate increase in fuel and electricity costs.”