$265m for Southland to meet environment regulations

Meeting a host of emission reduction targets and freshwater rules by 2025 could cost the Southland economy $265 million.

Great South chief executive Graham Budd spoke about the cost at the Southland Chamber of Commerce annual general meeting on Thursday.

After the impact of the Covid-19 pandemic, climate was the next ‘‘biggie’’ for the Southland economy, Budd said.

Sixty-nine per cent of Southland’s emissions came from agriculture, with goods production and processing being the other major contributor, he said.

‘‘The cost of this to our businesses and economy in 2025 will be substantial, estimated around $265m. These are all things that we have to address.’’

The Government declared a climate change emergency in December and a target of greenhouse gases (except methane) to be at net-zero by 2050 has been set.

The national context for Southland’s challenges also included the Climate Change Commission, the establishment of a Parliamentary Commissioner for Climate Change and national freshwater standards, Budd said.

The New Zealand emissions trading scheme would include agriculture by 2025 and farm level emissions plans were required by then, he said, adding that was ‘‘probably just scratching the surface’’ on some of the regulations ‘‘coming our way’’.

Budd spoke to about 40 people chamber’s AGM.

Chamber president Neil McAra said 50 businesses had joined the chamber in the previous 12 months.

Southland had a ‘‘rosy future’’, and McAra highlighted discussions about salmon farming in the district.

There were, however, some pointed questions from the floor.

Invest South executive Prue Halstead said she came across businesses weekly, who were ‘‘screaming out for talent’’ but people were not moving to Invercargill because of a bad reputation for weather and lack of restaurants and bars.

‘‘It’s really starting to have a major impact,’’ Halstead said.

Budd said he and McAra had both been a squeaky wheel on the issue.