Mr. Matt McGann:

Senator Higgins is right. Dr. Lynch spoke about the problem being the difference between the cost and the price. In economics it is what we call negative externality, whereby the costs of an individual's actions are borne by other people. There are difficult policy trade-offs in how the funds are used. The more the funds are used to directly recycle to households to target progressivity the less there is available to put towards emissions reduction initiatives. I am not here to offer a view on what is right or wrong but it is a policy trade-offs.