Select Committee on Environmental Audit Appendices to the Minutes of Evidence


Annex 1

  Copy of the summarised LSEEIN submission included in the "Changing Patterns of Production and Consumption" workshop consultation document for "Other Domestic Goods" Category circulated prior to the "Its Your Choice" 20 February Conference.

5.  GOVERNMENT TO ENCOURAGE RESOURCE PRODUCTIVITY THROUGH SWITCHING FROM TAXING LABOUR TO TAXING USE OF PRIMARY RESOURCES

ProsCons
(a)Tax "bads" not "goods" (a)The petrol strike showed how complex this move is.
  (b)People focus on the increasing costs of the "bads" because they are more obvious than reducing the costs of "goods". For example, you for pay petrol everyday but you receive a complex wage packet only once a month in which tax reductions can be lost.
  (c)Government may use the approach to justify an increase overall tax burden by not reducing the labour taxation by equitable amount.
  (d)Another "bureaucratic nightmare" as civil servants decide which primary resources to tax.


5.1  Your comments/other suggestions/current initiatives on any of the above:

    —  A better approach is for Government to use its influence to create the right market conditions for sustainability to thrive. Get Government to use legislation and fiscal measures to create a demand and then let market natural forces take over to satisfy that demand. Entrepreneurs will always come forward to try to make money through supplying a market. Avoid always talking about Government taxing this or that, they want to be populist and by just saying increasing taxes will not get there support.

    —  Using the financial system-the current owner of the planet earth Plc. LSEEIN urges this process to investigate and promote new voluntary financial system mechanisms which have been researched by LEESIN, EIO and other partners to playa pro-active role promoting new environmental technologies and sustainable corporate practices world-wide. We urge the education and mobilisation of millions of ordinary investors who as consumers, wider stakeholders and citizens share many identical concerns for their families and welfare of future generations. We call for a tax incentive(s) for an international voluntary Financial Eco Label Scheme that would be designed to enable participating fund management groups to act in unison as shareholders to advance global environment standards.

    —  How many products use primary resources from the UK are manufactured in the UK? Or should this labour tax be transferable to the people carry out the work in LDC?


 
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