OK, its election year both here and in the US and both countries are taking a major wedgie from increased costs of formerly cheap resources like oil and food. And on both sides of the pacific some pollies have come to the same conclusion; magic works: PM: Govt would veto regional fuel taxes.
The Government is likely to veto any move by councils to implement regional fuel taxes in the near future as consumers reel from rising food and petrol prices, Prime Minister Helen Clark indicated today.
Her statement follows Energy Minister David Parker yesterday confirming the Government is considering delaying parts of its emissions trading scheme (ETS) so consumers are not hit with even greater petrol price rises.
It has been estimated the scheme would add 6c-to-8c to the price of a litre of petrol from January next year.
Other legislation before Parliament would allow regional councils to impose a 5-10c a litre regional fuel tax.
Auckland Regional Council is under pressure to generate money for transport projects, but under the legislation it and other councils must get Cabinet sign-off to proceed with a tax.
Helen Clark today said that would not be happening in the near future.
"I can assure you that any suggestion of the Auckland region slapping 5c on the petrol next year is absolutely ridiculous. It's not going to happen," she said on TVNZ's Breakfast programme.
Meanwhile Hillary Clinton is proposing a "summer holiday" from US excise taxes on fuel that will save individuals almost nothing, cost thousands of jobs (well the money pays for road and bridge maintenance and if it ain't coming in what do you think they will use for pay?) and allow the gas companies to stick up (deliberate choice of words) the price of petrol and reap the windfall.
Here's the news; the price of petrol will exceed $2 a litre in NZ and $4 a gallon in the US, it will go to maybe $200 in the foreseeable future and NOTHING anyone can do will change that. Nothing.
So laying in some pre-emptive taxes will change only the timing of the pain and will at least give us some choices, delaying them will achieve exactly the opposite, same pain at least but with no money in the kitty to alleviate it. Great leadership there.
And to propose a delay in climate change legislation because the cost of polluting is getting too high has a fine level of cynicism. It seems our kids and grandkids will have to bite the bullet because we are too weak, cowardly, stupid and venal to do it for them. SUCH parental love.
So clap harder everyone and if you really really close your eyes tight and believe with all your might, reality will be suspended for just a little longer.
I can't HEAR YUOOOOOO!!!!!!
Update: the latest nuttiness is that the government wants to force oil companies to announce in advance any price increases.
So here's what will happen.
- Oil companies annoucne increase
- People rush to fill up
- Some petrol stations run out
- People can't get fuel at any price and either run out in transit or can't start their journeys and all of them get PO'd. Some of them get violent
- Petrol thefts and siphoning from cars goes up
- More PO'd people
- Exactly the same amount of fuel is bought at the current price and the price goes up anyway but since a significant percentage of people have not been able to manage their fuel use they have to fill up empty tanks instead of topping up as normal and there is another shortage at some stations.
Yep, brilliant, that will work a treat.
Update 2.
Oil now tapping on the $120/bbl mark, I think I'll run a sweep on when it gets to $200. Maybe it will have to be a tontine.
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