Shipowners Say New Zealand Carbon Tax Puts Local Shippers at Disadvantage

Monday February 13, 2017

New Zealand shipowners say carbon taxes under the Emissions Trading Scheme are putting the country's shippers at a disadvantage, New Zealand media reports.

The New Zealand Shipping Federation suggests that carbon charges to local shipping companies can be as much as $250,000 per ship each year.

Unlike local companies, foreign container ships that visit New Zealand ports do not pay emissions costs.

"In other countries, and internationally, it is accepted the shipping is the most efficient way to move goods or people and, therefore, you don't want to penalise them by imposing carbon charges," commented Annabel Young, the shipping federation's executive director.

"It is a direct imposition on our costs and, at some point, it is going to feed through into the cost of moving freight and people by ships," said Young, adding: "it will have a disincentive effect."