Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Forest owners given another ETS whack

FOREST OWNERS ASSOCIATION
MEDIA RELEASE
16 May 2014


Forest owners given another ETS whack


A measure hidden in the fine print of the Budget has forest owners wondering why they are again being unfairly singled out.

In a Bill that is expected to become law today, forest owners planning to pay their emissions obligations with international units will no longer be able to do so. These units, which typically sell for about a tenth of the price of NZ units, will still be legal tender for power companies and other emitters.

“Forest owners who have bought international units to meet their obligations during the next 12 months will be forced to sell them at a likely loss,” says Forest Owners Association president Paul Nicholls.

“The number of forest owners directly affected is unknown but all forest growers will be concerned by the inequity of this. For the second time in the tawdry history of the ETS, forest owners are being hit by retrospective legislation.”

Mr Nicholls says the Bill is designed to stop arbitraging by forest owners – a form of trading which enables participants in the ETS to profit by selling high value NZ units while meeting their obligations using cheaper international units.

“But it also captures everyday forest owners who entered the ETS in good faith and who now want to exit because it isn’t worth the candle. Small forest owners and iwi will be disproportionately affected.

“Meanwhile power companies and other emitters will be allowed to arbitrage for another year.”

FOA chief executive David Rhodes says arbitraging does not benefit New Zealand or the climate in any way, but it is an inevitable result of allowing unrestricted volumes of cheap international units into the country.

“We, along with Maori interests, the Parliamentary Commissioner for the Environment, environmental groups have repeatedly told the government that these units undermine New Zealand’s ability to address climate change.

“Finally they’ve decided to act. But why now? Why with such urgency? Why retrospectively? And why only forestry?”

He says there is a deep irony that the only industry that has consistently criticised the use of international units in the ETS has been singled out in this way.

“Minister Groser announced last December that non-New Zealand units would not be able to be used in the ETS from mid-2015. This provided ample time for players to adjust ... except for post-1989 forest owners, for whom mid-2015 has now suddenly become yesterday,” says Mr Rhodes.

“For forest owners this continues a series of decisions by this government which are as baffling as they are inequitable. The forest sector had considerable potential to help New Zealand meet its 2020 emissions targets, but that potential has largely been squandered.

“Far from being a part of the solution, forestry is going to become part of the problem because lots of trees planted in the 1990s are approaching the harvest age of 30 years and new planting to offset those harvest emissions has been stalled for several years.”

[ends]

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news