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Consider Aussie ETS before passing bill

Hon Dr Nick Smith MP
National Party Climate Change Spokesman

17 July 2008

Consider Aussie ETS before passing bill

New Zealand needs to give careful consideration to the design of the Australian emissions trading scheme before passing the current bill, says National Party Climate Change spokesman Nick Smith.

"The Rudd Government's proposed ETS differs significantly from the New Zealand proposal. We risk adding to the pressure for businesses and talent to jump the Tasman if we are not careful.

"These announcements reinforce National's view that the New Zealand scheme needs more work and should go back to the select committee.

"It is telling that the Rudd Government is proposing a fiscally neutral scheme, whereas the Clark Government is set to profit by more than $23 billion from the New Zealand scheme.

"The intensity approach proposed in Australia for energy intensive industries like aluminium, cement, and steel contrasts with that of New Zealand and will put our industries at a disadvantage.

"It is also very significant that Australia is not proposing any international trade until after 2013 on the basis of concern over market instability, yet New Zealand is proposing to be exposed to the international market from day one.

"There are also major differences in Australia's approach to the forestry, agriculture, and fishing industries that puts New Zealand at a disadvantage.

"National is committed to a well-balanced and carefully designed emissions trading scheme.

"With the implementation of Labour's ETS delayed by two years, there is time to consider the Australian ETS before finalising New Zealand's legislation," says Dr Smith.


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