Gordon Campbell | Parliament TV | Parliament Today | News Video | Crime | Employers | Housing | Immigration | Legal | Local Govt. | Maori | Welfare | Unions | Youth | Search

 

Proposed ETS deal disappointing, costly, uncertain

Proposed ETS deal disappointing, costly, continues uncertainty


The proposed changes to the emissions trading scheme are disappointing.

The New Zealand Business Council for Sustainable Development says the arrangements which will go to a select committee with Maori Party backing mean emissions are likely to increase and cost taxpayers a lot more than under the current law.

At the same time, the prospect of a broadly based multi-party-party deal, including both National and Labour, appears to have disappeared. It means the ETS will probably remain on the political agenda for each future election.

The proposed amendments to the scheme have only been supported by the Maori Party to select committee stage so the actual outcome remains uncertain.

The process means continuing policy uncertainty and investment blight for the next three months, and possibly longer, the Business Council’s Chief Executive, Peter Neilson, says.
Capping the price on emissions and delaying the phase out of assistance for major emitters could cost the taxpayers billions of dollars, at the expected price of carbon following a new climate change deal at Copenhagen. It also reduces New Zealand’s prospects of meeting its emissions commitments because major emitters have less incentive to cut emissions. In the meantime, the taxpayer picks up the larger share of the bill.

The Business Council, whose 63 member companies’ annual sales of $59 billion equate to about 43% of gross domestic product in dollar terms, has argued for pricing emissions since 2003.

Businesses outside the heavy emitter group have indicated a desire for policy stability based on cross party support for a sensible ETS. This looks more distant than ever after today’s announcement.

One of the effects of the plan to increase assistance to large emitters was to reduce the amount of revenue available to the Crown from selling emissions units to firms which produced excess emissions.

This means less money is available to recycle into household assistance and other measures to invest in low-emission economic development.

“We would like to see the Treasury figures on the actual cost to taxpayers and future budgets of the increased assistance now available to large emitters. We expect this will run into billions of dollars. We also look forward to the detail on how Maori and non-Maori owned forests might be treated under a revised scheme,” Mr Neilson says.

Overall, this proposed policy appears to greatly reduce incentives to heavy emitters to reduce emissions, increase costs of subsidies to them, slows down the timetable for reducing emissions and allows them to be increased in the meantime, by allowing production to rise (at a set carbon content per unit) without any clear cap on this. The more production rises, the more the taxpayer must step in to pay for the additional emissions.”


ENDS

© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Gordon Campbell: On Why Fair Pay Agreements Should Be Embraced

Are Fair Pay Agreements (FPAs) truly the work of the devil? Given the vehement response to them last week by (a) employer groups and (b) by their parliamentary friends on the extreme right, you could be forgiven for thinking these FPA things will mean curtains for commerce as we’ve known it for the past 30 years. Believe me, they won’t. Less excitable types will regard FPAs as heralding only a mild shift towards a more centralised form of bargaining over wages and conditions, much akin to what other successful economies (eg Germany) have recognised for decades... More>>

 

Maori Party: Whakatōhea High Court Decision

“We applaud the Whakatōhea High Court case that has now set a precedent for Māori rights and interest in their foreshore and seabed. It’s an outstanding decision because the Court recognises all reclaimed lands with significant and boating traffic” ... More>>

ALSO:

Judith Collins: Speech To Lower North Island Regional Conference

Good morning, delegates. It’s an absolute privilege to be speaking to you all here today as your leader. I’d like to acknowledge National Party President Peter Goodfellow, my fellow board members, my lower North Island colleagues and all of ... More>>

Government: Fair Pay Agreements To Improve Pay And Conditions For Essential Workers

The Government is delivering on its pre-election commitment to implement Fair Pay Agreements which will improve wages and conditions, as well as help support our economic recovery, Workplace Relations and Safety Minister Michael Wood announced today. More>>

ALSO:


PM: Statement On The Speaker And Annual Review Debate

“The serious issue of alleged sexual assault and harassment at Parliament was poorly managed and inappropriately politicised last night. The tone of the debate did not reflect well on Parliament as a whole,” Prime Minister Jacinda Ardern said. ... More>>

Parliament: Mallard Fails To Give Taxpayers A Straight Answer

Trevor Mallard has confirmed he is unfit to be Parliament’s Speaker by failing to answer several important questions relating to the false rape accusation saga that cost taxpayers more than $330,000, Shadow Leader of the House Chris Bishop says. ... More>>

Local Government: Independent Review To Explore Future

Local Government Minister Nanaia Mahuta says an independent review of local government will explore how councils can maintain and improve the wellbeing of New Zealanders in the communities they serve long into the future. More>>

ALSO:

PM Ardern And PM Morrison: Commencement Of Two-Way Quarantine-Free Travel Between Australia And New Zealand

Joint Statement by Prime Ministers Scott Morrison and Jacinda Ardern Commencement of two-way quarantine-free travel between Australia and New Zealand Today, Australia and New Zealand have fulfilled their commitment to establish two-way quarantine free ... More>>

 
 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels