The $3 billion cock-up

This is just incredible. Under National so called scandals such as the WINZ staff conference were about a $250,000 cost. Now Labour’s scandals have trumped that with $15 million a the Chch Polytech Cool IT CD and $500 million into the wananga for little return.

But this one makes everything else pale into insignificance. Labour have just admitted that their calculations on the benefits and costs of Kyoto were slightly out. By $1 to $3 billion!!!

In 2002 they said NZ would have 54 million tonnes of surplus carbon credits. We now find out that in fact we will have a 36 million tonne deficit. And this is not unexpected. A source tells me an economist told an ICANZ tax conference last year that Labour were incorrect in their calculations. Boy were they right.

So what does this 90 million tonne change mean? Well at the price of Labour’s carbon tax it means $1.3 billion down the drain. And if one uses the European market rate of $34/tonne it means a $3 billion loss.

Now surely someone has to resign and be held accountable for this?

UPDATE: As it was Pete Hodgson who in 2002 said “that not to ratify would be to set fire to a very big cheque”, I’ve got a fair idea where the firings shold start.