Russel Norman

John Key's recent signals of fiscal prudence in the upcoming Budget are to be praised, said Green Party Co-leader Dr Russel Norman. It's the quality of the spend that's critical now, however, and any new Budget spending should seek to lay the foundations for the next phase of sustainable economic development.

"The next phase of Government spending needs to be inexorably linked to the climate change agenda," said Dr Norman today.

The Greens join a growing international chorus of voices calling on governments to invest in a 'Green New Deal.' Yesterday, Achim Steiner, UN Environment Programme (UNEP) director recommended that government stimulus spending focus on five key sectors: energy efficiency, public transport, renewable energy, organic agriculture, and the protection of ecological infrastructure.

The UNEP report follows on the back of another key report from HSBC Bank, A Climate for Recovery: The Colour of the Stimulus Goes Green. Their report details how governments from around the world are spending $US430 billion in Green New Deal initiatives aimed at tackling the "triple crisis of economic downturn, energy insecurity, and climate change." China is spending 38% ($US221 billion) of its stimulus package on green initiatives, the European Union is spending 59% ($US23 billion), and South Korea 81% ($US31 billion).

"We can't continue to think that we can wake up from this crisis and hope that the world will be the same old brown economy of past," said Dr Norman. "Our major trading partners are transitioning their economies to new green footings. They won't want our agricultural products if they're high-carbon products. They won't want our tourism if our climate change profile does irreparable damage to our clean green image."

Earlier this month, Finance Minister Bill English said the May 28 Budget would "map out a road for economic recovery as well as a credible plan for getting the Government's deteriorating finances in order." Dr Norman responded, "The Government's Budget should look a lot more like a light rail line than a road if we're going to build a credible response to climate change in to the very fabric of our economy."

The Green Party hopes to work more closely with the National Government to encourage them to lead the transition of our economy to a more sustainable footing.

References:

UN Environment chief calls on governments to invest in 'New Green Deal' http://www.un.org/apps/news/story.asp?NewsID=30525&Cr=UNEP&Cr1

A Climate for Recovery: The Colour of the Stimulus Goes Green http://www.globaldashboard.org/wp-content/uploads/2009/HSBC_Green_New_Deal.pdf