LESS TAX TO PAY FOR CLEVER WORKING FAMILIES
30 November 2006 - Environmental Transport Association (ETA)

ETA response to Stern Report

‘“First they ignore you, then they laugh at you, then they attack you, then you win.” But Gandhi would recognise that global warming is more important than winning and losing’ comments Andrew Davis, director of the Environmental Transport Association, ETA.

‘Now that a treasury commissioned report, by the ex chief economic advisor of the World Bank no less, has basically confirmed what the ETA has been saying for decades, it is time to understand what the new issue will be.

‘It’s agreed – climate change is taking place. It’s agreed - we have to act urgently. Now we have to deal with those that say we can’t act until other countries act. ‘Such negative thoughts. There are plenty of projects we can do in this country that will: make us richer; save us money; and, protect the environment.

‘For example, heating is the biggest form of climate change in Britain – yes, simply heating our homes and offices. Old houses send mainly hot air into the sky – just introduce a law that says “from next year you may not sell a house with excessive heat loss”. If your house has high heat loss you will be taxed (this could replace stamp duty); but you will be given grants to insulate your home for resale. This rule alone will develop a massive insulation industry, save billions of pounds in energy costs and reduce CO2.

‘Secondly, change the way electricity is produced in this country – it is grossly inefficient – 65% is wasted. Simply allow anyone to sell electricity back to the mains. Within, say five years, thousands of local power stations will develop dispersing their excess heat to local homes and offices.

‘By doing just these two things we could halve CO2 emissions from Britain. There are many other similar projects that will develop exciting new industries, create jobs and save money.

‘The early adopters will gain most – they will purchase the most efficient new products; families will gain more than single people - there are more of them to a household. Those who consider the environment in their decisions; like where they live and work; will pay less tax. It is the environmentally greedy who will pay more.

‘However, there is a group that could be caught out - the very poor and socially disadvantaged. We will have to consider carefully how we could help them benefit from the changes ahead.

‘Don’t worry about China or America - they will follow our lead simply because it will make sense for them to do so. We need to engage with everyone but move forward with our coalition of the willing.

‘Ignore those in the media that say Stern means we will all pay more tax – is not true. Most people will pay less tax as green taxes are introduced. Look at the most obvious problem. Aviation is unhealthily subsidised by the state to the tune of £110 a ton of CO2. Remove that and only the better off will pay more (only half the British few last year). Those that did not fly will get a tax reduction.

‘What about motoring? Well Stern said CO2 output will cost our economic system around £50 a ton. Well motorists already pay £143 per ton of CO2 they produce – that’s nearly three times their contribution to global warming. Congestion and road damage are far bigger issues for motorists than climate change. We need to introduce road user charging and lower urban speeds swiftly.

‘The environment is now mainstream but do not be complacent - as Churchill said, “This is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning”. So chin up!’

www.eta.co.uk

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