ETS a con job' says ACT spokesman

Marlborough Express

by Blair Ensor  7 May 2010

The Government is "conning" the public as it forges ahead with an Emissions Trading Scheme (ETS), despite Australia delaying its own scheme until 2013, says ACT MP and climate change spokesman John Boscawen.

Speaking at the Marlborough Federated Farmers annual meeting at the Copthorne Hotel yesterday afternoon, Mr Boscawen said the Government had made a number of "misleading, contradictory, and inconsistent justifications for continuing full steam ahead".

"Do not be fooled by any amount of National Party spin."

The Australian Government announced last week it had delayed its ETS, due to start in July 2011, for at least three years because of parliamentary opposition and slow progress on a global climate pact.

The move lead to widespread calls for New Zealand to shelve its own scheme, but the Government remains steadfast that the country's ETS will still begin on July 1 when transport, energy and industrial sectors join.

The agriculture industry will join in January 2015.

Last week Climate Change Issues Minister Nick Smith said the scheme would provide incentives to invest in forestry, renewable energy and more efficient technology.

"This is a long-term issue requiring a steady and consistent approach. Our strategy has been to start the transition early but at a softer rate," Dr Smith said.

Mr Boscawen said investment in the scheme required long term certainty, which did not exist because the Government had scheduled two reviews before 2015.

Dr Smith also said New Zealand was not leading the world by introducing the scheme because three quarters of countries facing Kyoto Protocol commitments, 29 out of 38, already had an ETS.

Mr Boscawen said all 29 of the countries operated under the European Union ETS which was a scheme for a "whole trading block" rather than an individual country.

It could not be compared to New Zealand's scheme because it did not impose the same costs on producers.

He said the Government had misled many farmers by creating a perception they would be unaffected by the ETS until agriculture was included and animal and fertiliser emissions were taxed.

However, that only represented about 25 per cent of the ETS's cost to farmers.

Farmers would be stung by about 75 per cent of the cost of the scheme, which included taxes on petrol and electricity, when it kicked off in two months time, he said. Added costs imposed by the ETS on primary producers could not be recovered in competitive international markets where exporters received the world price for their products.

Instead producers would be forced to settle for reduced returns, Mr Boscawen said.

Marlborough farmers have publicly denounced the ETS and agriculture's inclusion.

Marlborough Federated Farmers treasurer Gary Barnett said farmers were a minority demographic, and the push to stop the ETS needed to come from urban people. However, they would only wake up to the reality when the costs were imposed, he said.

Many at the meeting indicated they would remove their support for the National party at the next election if the scheme went ahead.

Waihopai Valley farmer Aiden MacKenzie said he probably wouldn't support any party at the next election because there would be no one worth voting for.

Retired Marlborough farmer David Rudd said he used to support National, but had voted for ACT the past two terms, for "exactly this reason".

Waihopai farmer David Dillon, a fifth generation National supporter, said he would also be changing allegiances.

Mr Boscawen said the National party was taking farmers' votes for granted .

"He [John Key] is prepared to sacrifice his core supporters because he doesn't believe he will lose them. Yes, the ACT party could do well out of this."