Pmdefends decision to soften ETS
Prime Minister John Key has defended the decision to soften future impacts of the emissions trading scheme.
Science and research, rather than tax, was the way to change farmers’ behaviour and reduce their emissions, he said.
Key yesterday announced plans to delay the impact of climatechange measures on farmers and households.
Transitional measures rushed in by National after it won power in 2008 and due to be phased out next year will now be extended for another two years, at least, and Key has signalled that the most controversial among those measures, delaying the introduction of agriculture to the ETS, could be pushed out even further.
Farmers applauded the move and said New Zealand’s ETS remained one of the most punitive in relation to agriculture in the world, even with the delay – but the Green Party said excluding agriculture put New Zealand’s clean-green brand at risk and passed the cost of pollution on to taxpayers.
Key confirmed taxpayers would have to pick up the $80 million tab as a result of the reprieve for businesses and farmers announced yesterday, but insisted the measures would minimise the impact of the ETS on ‘‘households, exporters and employers’’. This morning, he said agriculture should be included in the scheme ‘‘at the right time’’.
Obligations were due to double but the Government believed the international economy was too weak, it was too tough on households and the rest of the world was moving too slowly.
‘‘We’re not really trying to tax farmers for the sake of it, or actually anyone, really, what we’re trying to do is change behaviour but using a tax to drive that behavioural change.’’
Key said that could be achieved through science and so the Government was ‘‘pouring’’ money into research.
Among the changes announced were: the Government would continue to provide a subsidy, which means businesses only had to pay for half the cost of their emissions; agricultural emissions won’t be brought in to the ETS until ‘‘at least’’ 2015; the price firms would face if carbon prices began to rise internationally would continue to be capped; the introduction of offsetting for pre-1990 forest land owners, which effectively allowed them to claim a credit for the carbon their trees stored.
Green Party co-leader Metiria Turei said New Zealand was missing the chance to protect and enhance its $20 billion clean-green brand. ‘‘Consumers in our export markets are becoming increasingly concerned about the carbon emissions tied up in the products they consume.’’