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Scare Tactics Or a Reality Check?

31 March 2008
(1 page)

Scare Tactics Or a Reality Check?

In the lead up to the Finance and Expenditure Select Committee hearings on the Climate Change (Emissions Trading and Renewable Preference) Bill this week (starting 2 April), many industry associations and businesses are getting increasingly nervous about the cost of the proposed legislation to consumers and the economy if the Bill is passed without significant amendment.

Last week, the Petroleum Exploration and Production Association released a report that concluded the thermal ban in the Bill would result in significant increases in the cost of electricity. (

In response Minister, David Parker says industry lobbies are using “scare tactics” to support their own interests.

Catherine Beard, Executive Director of the Greenhouse Policy Coalition, which represents many large industrials on climate change policy issues, says this sort of response is just a tactic to divert people’s attention away from the strong analysis in a range of reports released in the last 6 months calling for a cautious approach to the introduction of emissions trading.

“Many industry associations have gone on record over the last 6 months with concerns about the lack of adequate analysis and the poor consultation process behind the introduction of this Bill, which is where these sorts of issues should have been addressed and the analysis undertaken. If the government is not prepared to look at all the costs and benefits of a particular policy with rigour, then the private sector is forced to pay experts to fill in the gaps”.

Other recent research highlighting economic risks and solutions includes:

Emissions Trading Scheme for New Zealand – Report to Business NZ, 26 March 2007 (

We’re Right Behind You: a proposed New Zealand approach to emissions reduction. The New Zealand Institute, October 2007/2, David Skilling/ Danielle Boven (

The New Zealand Emissions Trading Scheme: How do we make it work? Report by Castalia for the Greenhouse Policy Coalition November 2007 – available at

Carbon Mitigation Scenarios, analysis by Infometrics, 5 Feb 2008 for the NZ Business Roundtable and Petroleum Exploration and Production Association (

Actions Speak Louder Than Words: Adjusting the New Zealand economy to a low emissions world. New Zealand Institute, March 2008 David Skilling/ Danielle Boven


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