After hearing this on the radio…
First, we know that the scientific reason for carbon tax is unfounded, and we also know that our main international trading partners do NOT have an ETS (I refer to Aus, US, UK, Asia) so for NZ to have a carbon tax that no one else has is just another large nail in NZ anti competitive coffin.
So what happens if we cancel the ETS tax ?
1) New Zealanders will not get taxed for carbon usages.
2) Those that have been promised cash credits will not get them.
As it just happens, the recent forest deals completed with the Maori tribes are promised cash carbon credits to finance their tree planting plans. If there are no CASH credits from the carbon tax, then there is no finance for the planting, and most likely a bill will be sent to the government for non delivered cash credits.
The government doesn’t want to have another MILLION dollar bill to be paid from the general tax fund as they dont have the money. The idea was the ETS tax would pay the Maori carbon credit bill.
Short story: The ETS is a special tax to pay for a Maori treaty claim !
Bloody Great !
Note: I have no opinion on the rights of Maori to any claim, I do have an opinion on the NZ government reasons for executing a carbon (ETS) tax.