Date published: 2006/06/02
Liberal Democrat Shadow Environment Secretary Chris Huhne in the BBC says:
The Liberal Democrats have always placed the environment at the heart of our thinking.
Climate change presents the greatest challenge of our time to policy makers, not only in the UK, but internationally.
We recognise that to tackle climate change we must cut our carbon emissions and provide international leadership.
However, at the moment, the government is failing to achieve either of these goals.
A significant change in behaviour is required if we are to cut our carbon emissions and ensure we reach the target of a 60% reduction by 2050.
Emissions from road transport and aviation are growing at an unsustainable rate and it is essential that we tackle the gross inefficiency of electricity generation.
We have proposed a fundamental change of approach that would see the government tackle the problem head on, rather than relying on grand rhetoric and international publicity stunts.
The Liberal Democrats are the only party to have grasped that providing financial incentives will encourage sustainable behaviour.
CO2 emissions in the UK have been rising as green taxes have been falling as a proportion of GDP.
We have proposed a "Green Tax Switch" which would see taxes shifted from activities we should support, such as employment and work, to unsustainable polluting behaviour.
The Liberal Democrats would combine cuts in personal taxation with increases in Vehicle Excise Duty (VED) so that gas-guzzling vehicles would pay significantly more than smaller vehicles with low emissions.
This policy would introduce a top rate of VED of £2,000 for heavily polluting, newly purchased vehicles.
Those in rural areas who rely on their cars, as there is little public transport, would be protected by a 50% discount in all but the top band of VED.
Research by the Energy Saving Trust (EST) shows that this pattern of incentives would encourage two-thirds of car buyers to opt for lower-emitting vehicles, gradually changing our car stock.
By introducing this policy, we could create a significant step change towards more sustainable behaviour.
This policy would not prevent people from purchasing any particular type of vehicle.
However, in order to accelerate our progress in this area, we need a package of measures to cut carbon emissions.
Fuel duty must also be maintained in real terms, rising in line with inflation.
We would also seek to extend the climate change levy and restructure it so it forms a carbon tax across the economy.
In addition, the Liberal Democrats propose taxing the emissions of each aircraft flight, rather than individual passengers, as at present. As a result, we would reward full flights and penalise half-empty ones.
Dear oh dear, if this is not mostly "rhetoric" and "publicity stunts" what is? As everyone but the UK ruling elite understand, the VED has nothing to do with carbon emissions, it is a tax on car ownership. Of course if you extort people who buy big cars then less big cars will be bought. But by that notion you ought to extort people who commute by train to London because that will force them to live closer to London, and hence reduce the number of train journeys in the UK, and hence reduce carbon emissions. And any argument that "this policy would not prevent people" living far from London is just as disingenuous as Huhn's equivalent statement about large car ownership.
Further, why should people who live in rural areas be given a 50% discount on VED? People who live in rural areas are harming the environment by living further from services and hence consuming more energy getting to them. Why should the urban and suburban areas subsidise this unsustainable lifestyle? And many people who live in rural areas work in urban areas. For example, there are many people who live in rural areas outside of Cambridge but drive into Cambridge to work. Why should they have to pay less car tax than people who live in Cambridge? And many rich people own property in both big cities (e.g. London) and in rural areas (as a weekend retreat). Needless to say they will register their cars in the rural area. So the ordinary people of Britain would have to subsidise the rich people of Britain, thanks to this brilliant Lib Dem policy.
And are the Lib Dems suggesting that fuel duty (i.e. tax) should rise independently of the rise (or fall) of fuel itself? Looking at the part without looking at the whole is a standard stupidity of politicians. And this Lib Dem policy will impact rural areas much more negatively than their silly proposal to reduce VED for rural areas would (since people in general pay much more tax via fuel duty than via VED). So they are claiming they are friends of rural people with one hand and stabbing them in the back with the other. And fuel duty is or course a carbon tax, only it is a carbon tax that is already way above what any sensible carbon tax would be. Before the Lib Dems further extort car drivers they should ensure that all other consumers of energy pay their fair share of carbon taxes.
And taxing emissions on aircraft flights is just as nonsensical as taxing aircraft on passengers. It gives no incentive for airlines to use fuel efficient planes. Everybody knows (except, it seems, the Lib Dems) that it is aircraft fuel that should be taxed.
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