Phil Goff Confused About ETS

Labour Leader Phil Goff’s statement that the Emissions Trading Scheme forces people to subsidise polluters shows that Labour, like the Greens, is confused about the real effects of the scheme and that they are clearly not ready to govern, ACT New Zealand Parliamentary Leader Hon John Boscawen said today.

“What Mr Goff did not tell New Zealanders is that the biggest effect of the ETS is that farmers, businesses and consumers alike are being forced to subsidise forest owners through higher electricity, petrol and food prices,” Mr Boscawen said.

“The scheme is paying $350 million worth of credits each year from 2008 until 2012, which will provide a one off allowance of over 200 tonnes of carbon or $4000 per hectare for foresters who replant forests on a 28 to 30 year cycle.

“This subsidy is enough for foresters to purchase high country marginal land and to plant the initial trees; struggling families and businesses are effectively giving free forests to those who are smart enough to take advantage of the scheme.

“The fact that Mr Goff overlooks all of this and instead claims that the agriculture sector is being paid to pollute shows that he is confused about the effects of the ETS, a scheme that his Party implemented.

“Mr Goff is also confused when he says that the agriculture sector is not paying its fair share.  On average dairy farms are paying $3,000 a year through higher electricity prices because of the ETS, while beef and wool farms also suffer with their average costs having gone up by over $1,000 a year.

“ACT has opposed the ETS since day one and will continue to do so.  If Mr Goff was really concerned about helping those who are worst off he would pledge to stop forcing them to subsidise forest owners by scrapping the ETS,” Mr Boscawen said.