Farmers vent anger over ETS inclusion

Marlborough Express 23/04/2010  by Blair Ensor

Agriculture Minister David Carter yesterday received an earful from Marlborough farmers outraged at agriculture being included in the emissions trading scheme (ETS).

The farmers waited for Mr Carter to finish a speech about the scheme at Meadowbank Station in Taylor Pass before unleashing a barrage of questions and statements.

Seddon farmer Michael Davison said he had been an avid supporter of the National Party all his life, but he would never vote for it again because of agriculture's inclusion in the scheme.

"This is bureaucratic bulls.... It's enough for me to sign off from National forever."

He then walked out on the meeting.

A Federated Farmers past president, David Dillon, said farmers were already struggling financially and the ETS would inflict more pain.

He said the National-led government treated farmers like "a rag doll" and took their votes for granted.

Mr Dillon stressed that he did not believe the science behind global warning was true.

"You know you are wasting our money and time on an issue that is dead... we have had the coldest winter in 30 years in Europe. There is no global warming.

"You should be ashamed of being part of leading this country before the whole world on this ill-founded hypothesis.

"It's political patronage overriding common sense."

Mr Carter said he did not believe that climate change was "rubbish".

Over the past 20 years there were a "hell of a lot" more emissions of greenhouse gases which produced a "human-induced" effect, he said.

Marlborough farmer Warren Taylor said farmers needed to stop arguing about the science and whether the scheme should go ahead and instead try to use it to their advantage.

"We can bitch and moan about it whether it's getting warm or not; let's make a buck out of it."

Marlborough Federated Farmers president Geoff Evans said the farming sector would not be able to compete in international markets because of a "perpetually" increasing ETS tax while foreign competitors received subsidies.

Mr Evans said many farmers did not want to plant trees because they were a haven for pests, reduced management options, could have an adverse affect on water supplies and were only "marginally" profitable in some areas.

"Government is trying to force farmers to plant a crop that may be detrimental to their business and then punish them if they do not."

In response, Mr Carter said the Government was not forcing farmers to plant trees, but doing so on non-productive farmland could help them recoup some of the costs of the scheme.

Grassmere farmer Doug Avery raised the issue of carbon sequestration (capture) to the soil from pasture species and the need for research to determine how much that may offset on-farm emissions.

Mr Carter said soil carbon may be a "potential, partial solution" to the problem which would be addressed by the Global Research Alliance which formed out of the Copenhagen climate change conference in December last year.

The alliance would try to find scientific solutions to producing more food to feed growing populations without increasing emissions from agriculture.

Hints of delay for agriculture in ETS

Agriculture's inclusion into New Zealand's Emissions Trading Scheme (ETS) could be delayed further than 2015 if the country's major trading partners do not follow suit.

About 100 farmers gathered at Meadowbank Station in Taylor Pass yesterday afternoon to discuss the impending ETS with Agriculture Minister David Carter.

Many farmers raised concerns about "little old New Zealand" being the first to include agriculture in the scheme, when other countries like Australia had so far excluded it from their plans.

The New Zealand Government included agriculture in the scheme because nearly half the country's emissions come from the sector.
Mr Carter said the ETS would be reviewed in 2011 and in 2014, before agriculture was subject to taxes under the scheme, and the Government would closely monitor whether other countries followed New Zealand's lead. "If the rest of the world goes nowhere near this stuff, we reserve the right (to make changes). We are not going to sabotage the New Zealand primary producing industry."

The ETS is designed to eventually bring all sectors of the economy under a regime which would limit greenhouse gas emissions through a carbon-trading scheme. Businesses that exceed their free allocation will have to buy carbon credits from those who are under their cap.

Labour passed legislation for an ETS in 2008 which included agriculture's entry in 2013. National campaigned to amend Labour's legislation, and last November changes were made which included a further two-year delay to agriculture's entry to the scheme.

The transport, energy and industrial sectors will join the scheme on July 1, while the agriculture industry, which accounts for almost half of New Zealand's greenhouse gas emissions, will join in January 2015.
The ETS is expected to lift power prices by 5 per cent and add about 4 cents a litre to petrol a cost of about $165 a year for each household.

Mr Carter said taxpayers would initially pick up about 90 per cent of the liability of the scheme, but responsibility would be transferred to farmers at 1.3 per cent annually.

He said that based on a carbon price of $25 per tonne in 2015 the Ministry of Agriculture and Forestry estimated sheep meat would incur a cost of up to 6 cents per kilogram, milk solids 2.5 cents per/kg, and beef 3 cents per/kg.

Mr Carter acknowledged the ETS would impose additional costs and compliance measures on the agricultural industry, but ignoring the scheme could restrict access to major international markets. New Zealand was no longer a low-cost producer, and competing with other countries in that market was not viable.

There was a "huge growing trend for safe food with integrity", he said. "It's a good market because the people that buy our product will be prepared to pay more."