Economy and environment should work together

Media release
13 February 2007

Economy and environment should work together

The prominence of economic issues in this year’s Statement to Parliament is positive, says Business NZ Chief Executive Phil O’Reilly.

“Issues such as building an economy based on innovation and quality, workforce skills, Export Year action, Asia-Pacific trade, the defense of New Zealand’s interests against protectionist ‘food miles’policies, and the aim for world leadership in the science of reducing animal methane emissions - these show a commitment to a sound and growing economy,” Mr O’Reilly said.

“There is no reason why economic and environmental policies cannot work together, and it will be important that environment policies – the other main focus of the Prime Minister’s Statement - receive proper cost-benefit analysis to ensure business competitiveness is not harmed. The aim should be not just for businesses to be no worse off, but for them to be better off as a result of such policies.

“For example Business NZ is pleased with the Prime Minister’s endorsement in today’s Statement of our work towards a New Zealand carbon trading regime. Business NZ will work with the Government on behalf of all New Zealand business towards an environmentally sound system that supports the competitiveness and growth of the New Zealand economy.

“Areas in the Prime Minister’s Statement where cost-benefit analysis is required include carbon neutral goals and the Biofuels Sales Obligation. These goals will not be straightforward, as witnessed by our difficulties in meeting initial Kyoto targets. And requiring government departments to become carbon neutral could mean taxpayer funding for planting forests, another area that would require budgeting and analysis of possible impact on taxation. The intent of the Biofuels Sales Obligation is understood; however there may be concerns if such a policy requires biomass or biofuels to be imported, possibly from countries with higher emissions than ours – more detail is needed.

“One area of the Statement that there is little business support for is the Waste Minimisation (Solids) Bill with its proposed waste levy on businesses. Enterprises prefer to voluntarily and effectively manage waste issues in accord with environmentally-conscious consumer desires.

“The main message from business is that we want the economy and the environment working together, not either at the expense of the other.”

ENDS

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