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Fletcher Bldg. seeks Negotiated Greenhouse Agmnt.

Tuesday, 27 April 2004 Media Statement

Fletcher Building seeks Negotiated Greenhouse Agreement

The Government will enter negotiations for a Negotiated Greenhouse Agreement with Fletcher Building Limited.

"Negotiated Greenhouse Agreements (NGAs) are a key element of New Zealand's climate change policy, says the Convenor of the Ministerial Group on Climate Change, Pete Hodgson. "These agreements will help reduce greenhouse gas emissions while safeguarding the international competitiveness of New Zealand businesses."

An NGA is a binding agreement between a firm and the Government that commits the firm to moving towards world's best practice in managing greenhouse gas emissions. In return, the Government provides a full or partial exemption for the firm from the emissions charge that is to be introduced by 2008. NGAs are limited to firms or industries whose international competitiveness would be at risk from an emissions charge.

"Encouraging best practice in emissions management offers both economic and environmental benefits," Mr Hodgson said. "NGAs and other climate change policies, such as the Projects to Reduce Emissions programme, are designed to help New Zealand secure the benefits of newer, cleaner energy technologies."

Fletcher Building’s manufacturing businesses that are eligible to negotiate an NGA include its cement, wood panels and laminates, and steel and wire operations.

The Government has signed one NGA, with the New Zealand Refining Company, and is negotiating with ACI Glass Packaging, Norske Skog Tasman, mining companies Newmont Waihi and OceanaGold (formerly GRD Macraes), Silicon Metal Industries Limited, New Zealand Aluminium Smelters Limited and some of Carter Holt Harvey's major New Zealand manufacturing operations.

The New Zealand Climate Change Office at the Ministry for the Environment takes applications from firms seeking NGAs and assesses their eligibility and priority. It has further applications under assessment.

Company information:

Fletcher Building Limited

Fletcher Building Limited (www.fletcherbuilding.com) is a building products manufacturing, construction and distribution company. It has an annual turnover of over $3 billion with total assets of $1.5 billion. It employs approximately 9,000 people in 20 business units located in New Zealand, and a further 2,500 in Australia, the South Pacific and South America. In New Zealand, Fletcher Building Limited has over 250 sites, offices and outlets in 92 different localities in New Zealand. Its manufacturing operations related to the NGA are:

Cement: Quarrying limestone and producing cement at its manufacturing plant at Portland, near Whangarei.

Wood panels and laminates: Producing particleboard, fibreboard, laminates and decorative surfaces at plants at Taupo, Hamilton, Papakura, Penrose and Kumeu.

Steel and wire: Producing steel billet, rolled steel products and wire at Otahuhu.

ENDS

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