National Continues to Mislead New Zealanders

ACT Climate Change spokesperson John Boscawen today voiced his concerns that some National Party MPs appear to be misleading the public over the costs of the ETS.

"In response to concerns by New Zealanders some National MPs are distributing a standard form email that contains a number of factual errors and misleading statements.  In particular, National MPs are saying that: ‘In the next 12 months the government will pay $1.1 billion to foresters, in the form of emissions credits for forests planted since 1990’," Mr Boscawen said.

"This followed statements made by Nick Smith in the House last week, yet, his own officials have advised me that of the 44.3 million tons that make up the $1.1 billion figure, 16.7 million tons, or $418 million, relate to pre-1990 forests and are a one-off, non-recurring allocation.  Only 27.4 million tons, or $685 million, relate to post-1989 forests.  This is an extremely important difference.  This $685 million figure itself relates to carbon credits expected to be claimed in respect of three years, 2008-10, and is the equivalent of about $228 million per year.

"In addition, National is saying that the Government’s revenue in the first year will be approximately $400 million.  This too is misleading.  Nick Smith’s officials confirmed that this figure excludes the benefits to the Government from the windfall profit gains to its three electricity generators.  These benefits will come to the Government, either by way of dividends or by way of increased value of the SOEs through retained profits.

"In any event, the ongoing, recurring gains to the Government are likely to be in excess of $500 million.  This is more than double the recurring cost of $228 million.  National MPs that claim the ETS is running at a loss are misleading New Zealanders and need to come clean.

"Finally, National continue to cite the EU ETS as a justification for implementing the New Zealand ETS.  The EU ETS is nowhere near as comprehensive and severe as ours.  The justification does not hold.  I made this point strongly at the Marlborough Federated Farmers Annual General Meeting in Blenheim yesterday and at the Mid-Canterbury AGM in Ashburton today," Mr Boscawen said.