Boscawen John: Questions for Oral Answer — Questions to Ministers 
Boscawen John: Questions for Oral Answer — Questions to Ministers 
[Volume:663;Page:11440] 
10. 
JOHN BOSCAWEN (ACT) 
 to the  
Prime Minister 
: How much of the $3 per week he referred to as the average cost for households of the emissions trading scheme on Television One  
Breakfast 
 on 24 and 31 May relates to electricity and petrol price rises and how much relates to the flow-on effect of these costs into the price of all other goods and services that households consume? 
Hon JOHN KEY (Prime Minister) 
: 
 The cost of the emissions trading scheme for the average household is estimated to be $165 per year or $3.17 a week to be exact. I point out that that cost is half what it would have been under Labour’s emissions trading scheme. I have been advised that of the $165 $117 relates to electricity petrol and other energy price rises and $48 relates to the pass-through of costs. This means that on the weekly measurement the member is using of the $3.17-per-week cost $2.25 relates to the increases in the price of energy petrol and electricity and the remaining 92c relates to the flow-on. 
John Boscawen 
: Why does the Prime Minister reject the Reserve Bank analysis of the costs of the emissions trading scheme especially when it told the Finance and Expenditure Committee on 11 March this year that although the direct impact of electricity and petrol price rises is 0.2 percent there is an estimated additional indirect impact of 0.15 percent giving a total impact of 0.35 percent—that is 75 percent more than the direct impact—which means that the full impact is more than $5 per week not the $3 he and the Minister for Climate Change Issues are promoting? 
Hon JOHN KEY 
: The member is incorrect. I quote from the Reserve Bank as supplied directly to me this afternoon: “the implementation of the ETS should not affect medium-term inflation … we expect to be able to look through this inflation boost.” 
John Boscawen 
: Will the advertising campaign that the Government is planning highlight the $3-per-week figure or the full cost of the emissions trading scheme as calculated by the Reserve Bank? 
Hon JOHN KEY 
: The full cost is $3.17 per week as per the best estimates we have. I refer the member to the Reserve Bank which said that there will be no impact on prices as a result of the emissions trading scheme shock. If the member does not want to accept that cost he needs to go and challenge the Reserve Bank but I have it here in writing and the member should stop making it up. 
John Boscawen 
: I seek leave to table my own email from Mike Hannah head of communications and board secretary of the Reserve Bank sent to me this afternoon which confirms the evidence given by the Reserve Bank on 11 March when it said that the total impact would be 75 percent more than the direct cost the Prime Minister refers to. 
Mr SPEAKER 
: Leave is sought to table that document. Is there any objection? There is no objection. 
Document by leave laid on the Table of the House. 
Hon Darren Hughes 
: I raise a point of order Mr Speaker. I am pretty sure that I heard the Prime Minister say at the end of his answer that the member who had asked him a question was “making it up”. For a Prime Minister to accuse one of his own parliamentary colleagues of making something up cannot be parliamentary. 
Mr SPEAKER 
: We all make comments in this place that are possibly not the best but I do not think the member was overly offended. I think the House should leave it at that. 
John Boscawen 
: I seek leave to table a letter from Mercury Energy to Scott Paterson of Balmoral Auckland advising of the increase in the retail price of electricity from 1 July this year on account of the Government-imposed emissions trading scheme and the extra costs it will impose. 
Mr SPEAKER 
: Leave is sought to table that document. Is there any objection? There is objection.