Foolish anti-producerism from Labour as per usual

Rio Tinto Alcan, the primary owners of Southland's Tiwai Point aluminium smelter claim the Government's emission trading scheme could mean the end of the smelter and the loss of 3500 jobs.

The company's regional president, Xiaoling Liu, warns that such a move could force the operation overseas, threatening the jobs of 900 smelter workers and 2600 indirectly employed workers.

Perhaps the most galling thing about the government's enthusiasm for imposing heavy financial and administrative costs on manufacturing, in the name of reducing harmful emissions, is that manufacturing is the only sector of the economy or society to significantly reduce its carbon emissions over the last couple of decades. The Tiwai smelter has reduced emissions by over 40 percent since 1990, and operates one of the most efficient aluminium smelters in the world using a clean and renewable energy source.

Furthermore, if the smelter were to close, Rio Tinto would merely move production to a poorer country with much weaker pollution regulations, resulting in a probable increase in global emissions, and the loss of thousands of jobs and millions of dollars of vital export revenue (in the last 15 years for example, China has opened 15 new aluminium smelters).

It's very easy for urban liberals to impose heavy financial regulations on industry as so few of them are employed in this sector, and it deflects attention away from the real sources of rising emissions - things like population growth and their own profligate lifestyles. Since it highly unlikely wealthy urbanites are going to stop driving around in gas guzzling "soft roaders," or give up buying power boats, emissions trading is going to have little positive impact.

There's certainly no point in sabotaging the economy on the alter of lower emissions, particularly since New Zealand's contribution to global carbon emissions is so pathetically small that there's little point doing anything drastic until China, Russia and the US start taking the lead. And since even the most environmentally conscious European countries seem unable to meet their Kyoto obligations, that could be a long time coming.