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Today's price rises - and the others still to come

The price of power, petrol and car licences start going up from today as the emissions trading (ETS) scheme cuts in and ACC levies increase.

The ETS imposes costs on greenhouse gas emitters which are going to be passed on to consumers and the government estimates households will pay about $3 more a week or $165 a year –3.5c a litre for petrol and about 1.5c a kilowatt hour for electricity.

A licence for the average petrol powered car increases by $30 as the ACC component of the licence fee goes up from $168.46 to $198.46, part of the government's changes it says are needed to meet the increased cost of claims.

Motorbike owners face bigger increases ranging from $70 to $170 a year depending on the size of their bikes.

On October 1 GST increases from 12.5 percent to 15 percent, raising the cost of nearly everything.

The Reserve Bank is expected to continue raising interest rates, meaning mortgage repayments are going to go up.

The Labour Party says if predictions are correct and retail interest rates increase by 1 percent by the end of this year, it will cost $60 to $100 a week more to service a $300,000 mortgage.

It also suggests budget measures targeting property owners and developers could mean rent increases averaging $34 a week.

Treasury forecasts a 1.4% increase over the next three to five years, which the Government compares with the 2.6% increase while Labour was in power.

From February next year, changes to funding for early childhood education will mean increased costs for some parents.

The centres are funded now to have 100 percent qualified teachers, from February that goes down to 80 percent. How many decide to cover the change by charging parents isn't yet known, but the Government expects some of them will.

On the other side of the ledger, tax cuts take effect on October 1 at the same time as GST increases.

The argument about whether people will be better or worse off has been going on since the May budget, with Labour and National throwing figures at each other.

Prime Minister John Key says the vast bulk of New Zealanders will be better off because they are getting tax cuts worth $4.3 billion against a GST increase which will cost about $2 billion.

Labour says wage increases won't be enough to cover inflation and most lower and middle income people will find price rises outstrip their tax cuts.

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Comments and questions

This must be so hard for the labourites. They seem to be moaning but can't offer any alternatives. Are they going to cut GST, ACC levies and the ETS? I doubt it. If anything they'll raise 'rich prick' taxes again on top of it all. So is this just opposition for opposition sake? Again?

Must be difficult for them to say anything really.

This ETS just defies both political sense, and of course objective reality (which states, as even the Greens admit, our ETS is nothing more than symbolic).

We've all just had our cost of living ramped up by the State (and ramping is the correct word) for no good reason at all. That's some sort of fraud in my book.

I watched Parliament last night (blessed if I know why) when John Boscawen asked Nick Smith what he would say to Mr and Mrs Pensioner who were now down to a one bar heater, and either he didn't hear the question or he's an even bigger idiot than I thought, for he answered that foresters in Marlborough would be receiving $80 million worth of carbon credits. Huh? I ask again Mr Smith: what do you say to Mr and Mrs Pensioner who you completely ignored in your answer.

Regarding those foresters who have gained the $80 million in Marlborough whom Smith seems to be so well informed of- they were most certainly on his mind more than the pensioners were: if I recall rightly, that's Smith electorate isn't it? Perhaps we should move to discussing political corruption now ...

(Talked to a farmer yesterday; he's planning on selling his (free) carbon units allocated for his pre-1989 farm forestry woodlots and buying a new tractor - which will be belching out carbon presumably. This ETS is insanity in every respect.)

ETS,Petrol, Electricity,etc increases all pass on to the consumer and the business's and companies will still maintain their profit level so the rich just get richer.
ETS just means that the average kiwi is supporting the financial economy of other countries.
Even if NZ manages to reduce our emissions there is no way we will ever see any money back, and if we did the Govt will pocket all of it.

Just to say that the previous poster has hit it spot on!

Is Key just Clark in a better cut suit? His support for ETS borders on the fatuous and patronising.

The ETS is one of the stupidest things any government has done to this country in quite some time.

The Foreshore and Seabed changes are just as bad if not worse too.

This scheme is going to make this country much less competitive than it is now.

I can see no real future for NZ while we have these muppets in power (Labour and National mainly) that continually roger the citizens of this country.

Why do New Zealanders just bend over and take this? Why don't we stand up like the Aussie's have done against the mining tax and the American's are trying to do against their government over spending and regulating?

Are we really that thick that we can't see what is happening?

No wonder so many of us just give up and leave.

We need to learn from history. Back to the time when Rasputin, a man with a damaged past, a narcissist, desperately over-emotional and a BS-er that even the best in the court at the time could aspire to take on.
The Tsar would regularly say: Don't ask me, but Rasputin understands.
Skip forward to NZ today. Nick Smith is it, to a tee. And just the other day, Key told a meeting out Tauranga way: I'm not very good on this, but Nick Smith understands it fully.
And like his(Smith's) doppelganger, our Al Gore has form. He stuffed the building industry to give us the Leaky House disaster....and his ego caused him to get into a sordid libel case we had to pay for. He freaked when Brash took out English....and had to take home-leave and only came back when tossed a lolly (so we could blame Brash as well as English for breathing life into this creature). Now this leading "intellectual" is back stuffing up the ACC -- while creaming it for his Tsar's pleasure, financially....which we all fund with higher rates. And now this ETS disaster.
Funny, if there was one politician who could change to Labour without a modicum of would the new Rasputin fare? Just a thought.
Key, wake up. He's setting you up for English. Look across the Ditch....and learn.

Fed Up.

I of all people can't answer your question, about why we're not on the street protesting this, but I can add another viewpoint which might help the cogitations on it.

The Libertarianz Party is the only politcal option in New Zealand that offers the philosophical base to stop this type of nonsensical Nanny State bullying - and ramping living costs for no reason is bullying - yet that party, to which I belong, captures less votes than the Bill and Ben Party which pointedly stands for nothing.

Kiwi's would rather vote for 'nothing' than a party with a coherent classical liberal philosophical base (I can't say humanist, unfortunately, as some Christians see themselves as libertarians, for reasons I can explain, but has nothing to do with this thread). Classical Liberalism was where the West was headed in the 'glory days', but this hasn't been the case for a long time now: indeed we are traveling quickly in the opposite direction back to totalitarian Nanny States. It's not even that 'while good men do nothing', it's more, 'while airheads are fed by the State with no capacity to think for themselves, and policiticians are reducing us all to serving the 'needs' of this monster (which we can also call a misguided altruism)'.

Answering why that it, would be to answer your question.

(The base line answer is easy; it's a dearth of philosophy. But why that is becomes complicated, however, it points to the welfare state, state school brain-washing [how many teachers have you ever met who are not Left wing liberals?] et al, and on stop of all which I can sum up as our democracy. David Hillary said on the Reserve Bank 'Tools' thread we need a much more fundamental debate about the society we live in, he was referring to monetary insitutions only, but I say you have to go behind that to the philosophy that they sprung from.)

Morning tea is over.

This government is killing us. Us small to medium sized businessess just cant cope with interest rate rises, higher GST, ETS, ACC increase. This is the straw that breaks the camels back. Everyone is leaving this country. This greedy government needs to get their act together.

ETS is a load of crap , why did NZ ever sign up to this when China and the likes are sending tonnes of crap into the sky every second of the day. its just a very costly joke !
Small business will suffer and then the dumb Govt will be spending more of tax money on getting incentives to start up business again, and so the joke goes on.
Can anyone tell me how many other suckers have signed up ?

He's a suggestion, why not commoditise everything so the market hyenas can play even more. Oxygen would be a good start, like an annual allocation per person and anything over that must be bought on the open market, too bad if you have big lungs.

If agriculture is the biggest contributor to greenhouse gas emissions in NZ and is then left out of the ETS for five years all that happens is Mr & Mrs average pay more in a recession economy with already high price points... for what, tourism branding?

Actions always speak louder than words... like planting more trees, making economical and hybrid cars cheaper via tax breaks and gst discounts, re powering public and commercial transport fleets en masse and of course the holy grail of putting a cork in the methane releasing organs of cows. This could all be paid for out of the massively improved dairy returns... simple.

I have already left and from across the ditch look with dismay at what is happening in NZ. My son leaves NZ in a few weeks and his girlfriend is likely to follow. Will we ever return?

Fed farmers killed any prospect of a Carbon Tax many years ago with their FART Tax campaign. NZ's weak ETS is the best protection agaisnt Green Tarrifs that the NZ Ag sector could ever have wished for, esp when Ag (Fonterra) is hughy shielded by tax payers.

NZ's Clayton's ETS is doing excatly what it should do - sending a (weak) price signal on GHG emissions right through to the end users (tax payers and pensioners alike). Diesel, petrol, electricity & coal distributors merely pass it through (albeit with hydro generators makign the odd windfall $ along the way). Taxpayers are shielding NZ's energy intensive, trade exposed sector (Cement, Aluminium, Steel, Methenex, etc), for the next 40 years .

If not a market mechanism like an ETS, then what? - Regulatory Intervention? 20% electric Cars, Immediately shut down of Huntly & AP3, a ban on coal fired boilers by 2013, a Cap on number of dairy cows, no bagged nitrogen ferlilizer - clover only?

Cant have it both ways. Id prefer a market mechanism

This is a huge con, the PM has not got a clue how it is too actually live under these stupid schemes, they are taking so much away from ordinary kiwi's it's not funny! This ETS is BS. And the sooner we get rid of this Shonkey PM the better! He is a multi millionaire, he has no idea what trying to live in a freezing damp house, with no money for food means. how dare they take money from the poor while using ministerial credit cards to live the high life.

"If not a market mechanism like an ETS, then what?"


The science is getting very strong now for the anti-AGW stance.

And that aside, governments meddle in markets to all of our detriment.

Notpc has a great poster to sum this up here:

I came to NZ imagining that I could cope with the level of taxes somehow but now I think I should have just stayed back. High ACC, GST, Second job taxes etc etc and now ETS make me think always whether I should have opted to go for Australia instead. Here I see that some people are slogging their hearts out while others just enjoy on dole. I don't want and don't expect any support from the government but I hate this organised extortion. I am now looking for loopholes to exploit so that I pay less taxes like most of the really rich people do. If the rich can get away with not paying taxes so can the poor. I am going to do it!!!!!!

John Key is way too Left.

This ETS is a joke and National pushed it because of what happened to Howard in the last Aussie election.

We didn't need this and there is absolutely no proof that man made emissions effect climate change.

Show us the proof Key and Smith. Back up your legislation with the facts. Any report you try and sight is refutable!!

The US has spent $80 Billion trying to link climate change with emissions - they haven't proven one thing!

The only people who will do well here are fanciful accountants trading bogus carbon certificates printed in Bangkok.

I fully support an ETS scheme BUT this one does not do ANYTHING to stop polluters from polluting. I am with Meridian who has only energy from renewable sources but there is a fair chance that I need to pay more because Meredian needs to pay carbon credits anyway?!?! So how does that stimulate choosing a sustainable energy provider? And (dairy) farmers and industry will keep on polluting because we will pick up the bill for them. In the meantime John Key is busy shopping for a Panda in China, it is all about priorities ...

Does the verage Joe understand exactly WHAT this is all about? Where doesthe money go and exactly what does the ETS stealth tax achieve?

Assuming that people mostly drive only when they have to (or in Auckland's case, sit in bridge-related traffic jams when they most desperately need not to), or that they heat their homes only when they are cold, switch on their lights only when it is on earth can this taxation act as a deterrent to necessary consumption?

So, Average Joe does all of the above in an effort to maintain a basic lifestyle, pays more and benefits exactly how? Where does this revenue go and what is it spent on? Does it create a combined road/light harbour crossing (PLEASE don't even think 'Tunnel'), thereby eliminating existing carbon-generating jams and provide 'clean' commuter transport (unlike existing dirty diesels in the bus lanes).....does it create wind farms or other 'clean' energy sources? Does it creat a fully reticulated natural gas supply to cities such as Christchurch and thereby reduce electicity demand? Does it even replace Ministerial diesel 7 series BMWs with SmartCars?

Talk about reducing NZ's competitiveness - this type of con goes much deeper: it destroys the incentive within NZ's human capital. Crossing the ditch (and beyond) just got a whole lot easier once again...

Unless this Govt actually starts listening to the people and adopts the recommendations of the 2025 Task Force, we are screwed.

My ex-pat friends in Australia just use NZ as a skiing holiday destination now for a week a year then back they go.

They don't know to laugh or cry at the state we are in compared to Australia... and that country isn't perfect either of course.

Tribeless is right (if I understand) our society needs a re-boot from the ground up so that we can shake off the shackles of being fed a load of socialist, interference and rubbish that bit by bit has taken away any chance NZ had after 1984 of making real progress.

What a sad state of affairs we find ourselves in.

Still, the Rugby World Cup will fix everything so "she'll be right".

The National Govt as just as bad as Labour for taking money out of the pockets of workers without giving anything substantial in return.
Well at least Labour were honest. National's election platform was more money into the hands of workers but their policies do not deliver.
We have to get politicians who dishonestly get into office by making false promises out in the next elections even if the alternative does not look much better. That is the only way to keep them honest.

How about NZ can't afford more taxes? The dairy industry is the biggest polluter in NZ and they are not paying an ETS? We are? The ordinary kiwi family, many of us try very hard to recycle {recycling is a bit of a joke, they dump much of the plastic items in the dump anyway} and we are paying expensive costs for new light bulbs, that never seem to last, we can't afford to make our houses eco friendly as the cost for solar panels and all the rest is exorbitant. So we are left freezing, hungry and depressed. While the actual high end industrial polluters get away with it. And the Govt has their heads in the clouds!

The "Political indoctrination" of our youth is one of the reasons Nicked Smith and his Smile & Wave pawn have got away with this con.

Would you vote for me if I could fix it?


What planet is John Key on??? Does he NOT understand the perilous position of many small businesses in NZ who are already tottering on the abyss? This myriad of new taxes are not only been introduced in the middle of winter, but during a period of sustained, economic downturn. It will be many business's death knell. It is absolute insanity and nothing short of commercial negligence, incompetence and economic sabotage.

Wake up Kiwis - you have been conned with this great big new ETS tax! The biggest polluter, the dairy industry, gets of scot free whilst the average Kiwi taxpayer bears the brunt of this big con.
How can anyone put there hand on their heart and say the Kiwi ETS is good for the country? Where are the benefits? China pollutes in one hour what NZ pollutes in a year! No wonder China will never place a price on carbon.
Unfortunately, until voters take a hard line and vote in Governments that commit to balanced budgets, the cost of all government services will just keep going up in price to fund the deficits.

Whilst our happy, smiley people of government set about reducing our international competitveness in the non-Agriculturalsector, we ought to consider how much of a sustainable economy wereally are looking at before knee-capping ourselves further; is ANYONE in government giving consideration to the pendng vast reduction in public sector employees in U.K./Europe and the resulting flow-on that will certainly reduce Tourism as an effective income earner for us? And what effect upon our wine exports, when as a cash-strapped UK consmers see us as a high-priced option and we are spurned in Hampstead or Wimbledon in favour of cheaper plonk?

By the way, can anyone explain why it is that as ALL NZ wine bottles are imported and the glass made by carbon-creating overseas manufacturers, how come the wine industry here isn't paying the carbon-emmission element? Nick Smith stated that our coal industry is exempt from ETS because we export the carbon-laden product and it is the responsibility of the end-user to pay in this case, China - Good Luck!). So, isn't the NZ wine industry the effective 'end user' of carbon-laden glass bottles and oughtn't it to be paying the ETS tax and therefore being forced to be even less competitive?

The point is, nobody in government (and let's remember that this initiative WAS begun by Labour) seems to think this through in terms of the 'universe' of flow-on effects: make our wine even more expensive as an export and kill that income stream in addition to reduced tourism revenues and a cripppled manufacturing sector?

"Thou shall not steal"

Sounds like a comedy duo...except the jokes on us!
One with his priveleged head in the clouds and the other with his head somewhere else.
Time to start naming names, I bet a few consultants and brokers all clipping the ticket and others recipients of the Nats largess. What the bet a pattern of cosy monied buddies might appear...that is if we had an real investigative journalists left untainted by govt lucre willing to do some real digging.
Oh the joy of living in this south seas paradise like most huddled around 1bar when last year 2 was necessary all to save a few bucks. How do the aforementioned comedians explain to we peasants that our homes dont meet recommended WHO healthy living standards while the batter us into the economic stone age. But of course we are warmed by the smug glow that saving the planet gives.
Time to bring along the eggs and rotten fruit to Smiths travelling comedy fest I recommend.

Yes Sally @ 1.12pm

Now 39.3 months before NZ's economic implosion. i.e. a point where international debt repayment becomes unrecoverable due to the slowdown and or collapse of GDP pace.

Thanks to measures such as the ETS

The guy who invented tree hugging Alias Thick Smith was overheard saying ",IF YOU DONT LIKE OUR ETS YOU CAN VOTE FOR ACT"that would help us as well.-go figure.

My world is shrinking, day by day I can afford to do less and less, I have'nt had a pay rise for over 2 yrs (no pay rise is a pay decease). I'm a tradesman, I used to earn a resonable wage but now I'm strugling to survive. I live out in the country so I bought a motorcycle to get to work on if my car broke down ( no buses out here ) now I can't afford to reg. it. Now with ETS this is going to get get a lot worse, I even cringe at running my little fan heater more than a few hours a day. The problem is that no matter how much we suffer it going to make no difference to world ETC at all, just drive us Kiwi's under. The national and labour governmaents have made it quite clear they have no interest in our wellfare at all. When the country is bankrupted and sold off to highest bidder what do we do then ???