Media Release
15 October 2009

Farmers already cutting emissions without ETS

Federated Farmers has unambiguously made its views known to the Select Committee on the Climate Change Response (Moderated Emissions Trading) Amendment Bill.

“The ETS is world famous only in New Zealand. As the Wall Street Journal showed with several damning editorials, New Zealand is losing business credibility as investors increasingly look at us with incredulity,” says Don Nicolson, President of Federated Farmers.

“Do you honestly think Belgium or French farmers will protest our lack of an ETS when they, along with farmers throughout the EU and those in Japan, the United States and Canada are being given a free-ride with other subsidies to boot?

“The Australian legislation is still nowhere to be seen and while we rush at break-neck speed to implement ours, there’s no guarantee Australian farmers won’t be included, placing us at a competitive disadvantage.

“No one seems to ‘get‘ that while agricultural emissions appear to be a big part of New Zealand’s profile, emissions growth between 1990 to 2007 was actually half that of the general economy. Twelve percent for agriculture versus 24 percent for the rest of New Zealand.

“Over the same time there has been a 74 percent increase in transport related emissions and a whopping 120 percent in electricity related emissions. Instead of being congratulated for proactively reducing emissions per unit of output, we get bagged.

“Federated Farmers made it clear to the Select Committee that the ETS should be repealed and replaced by non-punitive policy measures to transition New Zealand to a low-carbon economy.

“New Zealand doesn’t need an ETS to meet its Kyoto commitments and we restated to the Select Committee some meaningful ways to improve the legislation,“Mr Nicolson added.

The Federation today put the following to the Select Committee:

New Government-funded forest plantings via land leasing regimes, land purchases or other viable partnership arrangements. This will not just develop new permanent forestry sinks it will generate employment opportunities. This concept was also put to the Prime Minister’s Job Summit held earlier in the year

A low-level carbon charge set at a rate that recovers just enough revenue to account for any emissions deficit

Government purchasing the cheapest Kyoto emissions units available to meet New Zealand’s future liabilities until the Kyoto Protocol lapses in 2012

Lead internationally by advocating for the Global Alliance, with the ruminant centre to be based in New Zealand; and potentially

Non-compliance, akin to the Canadian Government’s approach since 2005.

“While there were dire predictions of doom from within New Zealand if we didn’t adopt an ETS, the fact Canada has not been fussed about complying for several years wasn’t raised once as an objection to the proposed sale of Auckland airport last year,” Mr Nicolson continued.

“Our major trading partners have made it clear the primary production of food has no place in any emissions trading scheme. That is Federated Farmers view and we do not understand why New Zealand wishes to swim against the global tide

“Ironically, the Danish Government in March specifically excluded the primary production of food from a proposed methane tax. I say ironic, because that’s where the Copenhagen agreement will be negotiated later this year.

“You’d think someone in Parliament would take the hint,” Mr Nicolson concluded.

Please click here to download the Federation’s submission

ENDS

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