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March 29, 2009

Media Release

80% of business people say polluters should pay for their excess greenhouse gas emissions

A new national survey shows 80% of business people think polluters should pay for their excess greenhouse gas emissions, not taxpayers.

Only 7% of business people surveyed think taxpayers should pick up the bill for any emissions in excess of the 2008-2012 Kyoto target New Zealand has committed to.

There is also little tolerance for giving large emitters assistance for longer than necessary, according to the survey on New Zealanders' Attitudes to Climate Change, commissioned by the New Zealand Business Council for Sustainable Development.

55% of New Zealanders believe there should either be no assistance given, or it should be phased out by 2012 (53% for business people).

The weighted survey of 2,851 people by ShapeNZ has a maximum margin of error on the national sample of + or - 1.8%. It also covers 574 business people (business managers, proprietors, self employed and professionals). The maximum margin of error on the business sample is + or - 4.1%.

The survey's findings, which will be put before the Parliamentary select committee reviewing the Emissions Trading Scheme (ETS), includes one showing 50% of New Zealanders support the move to have the committee undertake the review (61% support among business people).

However, it sends policy makers some strong signals on policies which will be acceptable to New Zealanders who overwhelmingly believe climate change is happening and needs to be better and more quickly managed.

The ETS has the support of 42% of New Zealanders, with 28% opposed, while 22% are neutral and 8% don't know.

Among business people 41% support an ETS, 18% are neutral, 35% oppose and 6% don't know.

On whether or not the country should have a carbon tax in place of an ETS, 59% either did not have a preference (35%) or didn't know (24%). Of the minority who did have a view, the tax is preferred by 22%, while 18% prefer the ETS.

The Business Council says there is little business or public support in the ShapeNZ survey for those who are asking for a total exemption from the ETS by receiving free allocations to cover 100% of their emissions.

The current ETS law provides for taxpayers to pay for 90% of large emitters' emissions, in excess of 2005 levels, between 2008 and 2012. Assistance is then reduced by 8% a year until 2030. Only 30% agree with this level of assistance. The Business Council, however, supports this assistance policy for businesses exposed to competition from those not facing a price on carbon.

The country's emissions are now about 26% higher than the 2008-2012 target New Zealand committed to under the Kyoto Protocol.

About 75% of New Zealanders believe there should be some transitional assistance to those affected by higher fuel and electricity costs caused by pricing emissions.

Support for this exceeds 70% among voters for all parties in parliament except Act: 75% of National voters and 87% of Labour voters and 92% of those who chose not to vote at the last election support transitional help to adjust to higher power and fuel prices.

The ETS is expected to put up the average household power bill by $10 a week and the price of a litre of petrol could rise by 4 to 8 cents, depending on the market price for emission units.

There is highest support to provide assistance to all households regardless of income (49%) followed by all low income households (42%). There is 8% support for assisting beneficiaries only.

The most popular ways of providing assistance are through rebates on monthly electricity bills (21%) and paying households to install insulation and double glazing to cut power bills and emissions (19%).

Business Council Chief Executive Peter Neilson says the survey shows Parliament needs to tread a fair line in deciding on the balance of assistance to large emitters, and other smaller businesses and households.

"People are prepared to help shield large emitters from unfair competition, but within reason. They know there's a cost in cutting emissions, but rather than have cash short term they want help to cut household and business emissions.

"Business people have not been persuaded that they should face a continuing tax burden to pay for polluters' excess emissions," Mr Neilson says.

"The survey shows business people and New Zealanders in general want a balanced scheme - to put a price on emissions which, in turn, makes sure there's a balance in costs faced by large emitters, other businesses and households."

ENDS

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