Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Improved ETS will better protect jobs, environment


Hon Dr Nick Smith
Minister for Climate Change Issues
24 September 2009 Media Statement

Improved ETS will better protect jobs & environment

The Government today introduced a Bill to the House that will make the emissions trading scheme workable and affordable and ensure the New Zealand economy and jobs are not put at risk.

Minister for Climate Change Issues Nick Smith says the Climate Change Response (Moderated Emissions Trading) Amendment Bill carefully balances New Zealand’s environmental and economic responsibilities.

“These improvements to the ETS are pragmatic. The changes agreed with the Maori Party and United Future will halve the costs for households for fuel and electricity, discourage carbon pollution, improve energy efficiency and encourage tree planting by creating internationally valuable credits for forest owners. These changes are good for New Zealand.

“This Bill is about the National Government delivering on its election promises We said we would legislate and implement a carefully balanced, all sectors, all gases ETS. We said we would take an emissions intensity approach. We said we would align our ETS more closely with Australia. We said we would not pocket billions of dollars by nationalising our emissions allowance. We said we would not discriminate against small business, and we said we would align the phase-out of industry support with our trade competitors. This Bill does all these things.”

Changes in the Bill include:
• Revised entry dates of 1 July 2010 for transport, energy and industrial sectors and 1 January 2015 for agriculture
• A transitional phase until 1 January 2013 with a 50% obligation and $25 fixed price option for the transport, energy and industrial sectors that will half power price and fuel price increases
• A production-based industry average approach to allocations for trade exposed, emissions intensive businesses
• A two-tier system of allocations of 90% for highly intensive and 60% for medium intensive trade exposed businesses
• A phase-out of industry support aligned with trading partners and the Government’s long-term -50 by 2050 emissions reduction target
• Incentives for afforestation created by a domestic and international market for carbon credits
• Enhanced transitional support for the fishing industry.

“The Bill also makes more than 34 changes to address anomalies and errors in the previous Government’s legislation. These include removing the liabilities created by the clearing of wilding pine trees and removing the liability associated with nitrogen curing of cabling that could have cost New Zealand manufacturing jobs. We have taken a pragmatic approach to make the law as workable as possible.

“This emissions trading scheme will be the first of any country outside of Europe and, as of 1 July 2010, will be the most comprehensive by including transport, industrial and energy emissions. The transitional support is about providing a gradual phase- out in and limiting the costs for households and business as New Zealand pulls out of the recession.

“There have been extravagant claims about the cost of these changes. There are costs for the initial transitional phase to 2013 of $415m and savings of $493 million between 2013 and 2018. Cost estimates beyond 2018 are very uncertain.

“The issue beyond 2018 is that under Labour’s existing scheme industry support is phased out at 8% as compared to Australia’s 1.3% and the EU’s 1.7%. We are not absolutely married to the 1.3% phase-out rate this far out into the future and note there are five year reviews of the rate beginning in 2011. However, we are committed to moving in line with our trading partners. Our worry with Labour’s phase-out rate – five times faster than any other country – is that it would discourage jobs and investment in New Zealand.

“It is important that these improvements are passed before the existing ETS comes into effect on 1 January 2010 and by the time of the Copenhagen climate change conference in December. If we can meet this timeline we will position New Zealand well in the global challenge of tackling climate change.”

ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

PM's Statement: Deadly Eruption Of Whakaari / White Island

At this stage, we can confirm that amongst those currently listed as missing or injured are New Zealanders who were part of the tour operation, and tourists from Australia, the United States, the United Kingdom, China and Malaysia. That is to the best of our knowledge.

To those who have lost or are missing family and friends, we share in your unfathomable grief at this moment in time, and in your sorrow. Your loved ones stood alongside kiwis who were hosting you here. We grieve with you, and we grieve with them... More>>

Police Update: Plan To Recover Bodies
"I can now confirm that we are finalising a plan to recover the bodies from Whakaari / White Island tomorrow morning. Families will be briefed on the operation at 4.30pm and Deputy Commissioner Mike Clement will speak with media in Whakatane." More>>

Gordon Campbell: On The Eruption And Tourism Safety
Adventure tourism is a central theme in New Zealand tourism, and by definition, adventure always includes a certain level of risk. That said, New Zealand itself is also at risk of being seen as a tourism destination where commercial factors – rather than safety factors – are routinely allowed to determine the point where the boundary line of acceptable risk is being drawn. More>>

 
 

Gordon Campbell: On Welfare Vs Infrastructure Spending

If New Zealand has a pressing need to stimulate its flagging economy, it seems very weird that the government is choosing a $12 billion package of infrastructure spending – mainly on road and rail – that by definition, will take a very long time to deliver their stimulatory benefits ... More>>

New Reports: "Immediate Commitment To Doing Justice Differently"

Justice Minister Andrew Little released two reports today, Turuki! Turuki! from Te Uepū Hāpai I te Ora, and Te Tangi o te Manawanui: Recommendations for Reform from the Chief Victims Advisor. Both recommend a fresh approach to the way criminal justice has been approached... More>>

ALSO:

"Heart-Breaking And Confronting": Surgical Mesh Restorative Justice Report

Minister Genter: “People have talked about losing the life they had enjoyed before surgical mesh harmed them – the loss of a steady job, the ability to exercise, a loving relationship in some cases. Others described the chronic pain they experienced..." More>>

ALSO:

Law Foundation: Government Decryption Powers Must Respect Privacy

The power of government to order users and companies to decrypt encrypted data and devices needs stronger privacy protections and additional safeguards, according to a study published by researchers at the University of Waikato. More>>

Latest 'Discussion Doc': National On Healthcare

National has today released our eighth Discussion Document which focusses on health and outlines a range of policies which will enable more Kiwis to access high-quality healthcare, Leader of the Opposition Simon Bridges says. More>>

ALSO:

Select Committee Report: Combatting Foreign Election Interference

MPs have finally delivered their recommendations to combat foreign interference in elections in a long awaited and much delayed report. More>>

Mosque Attacks: Names Of Arresting Officers Released

Police are now in the position to name the two officers involved in the arrest of the alleged gunman responsible for the attacks on the Al Noor and Linwood Mosques on March 15. More>>

Big, Bold, Permanent Change Needed: Children's Commissioner On 2019 Child Poverty Monitor

“I want to see family incomes dramatically raised by increasing benefits and making the minimum wage a living wage. And the Government needs to move much faster at increasing the supply of social housing..." More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 


 

InfoPages News Channels