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Home / New Zealand

Emissions trading bill running out of time

Claire Trevett
By Claire Trevett
Political Editor, NZ Herald·NZ Herald·
11 May, 2008 05:00 PM3 mins to read

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KEY POINTS:

The Government is in danger of running out of time to push through major pieces of legislation before the election - including its cornerstone climate change policy, the emissions trading-scheme.

With fewer than 37 sitting days left before Parliament is likely to dissolve for the election, Labour still
has about 70 bills to push through.

The carbon emissions trading-scheme has been a high priority for the Government - although its value in election year is now debatable as it has been linked to rising petrol prices.

Passage of the scheme before the election is increasingly in danger if the select committee bogs down its progress or small parties follow through on threats to pull their support.

Labour does not have a majority on the select committee, so National could try to get small party support for an extension to its deadline.

This would give the select committee time to consider the Government's proposed amendments to delay the introduction of fuels into the scheme from 2009 to 2011 and to give heavy industry five more years of free emissions allocations.

The Government's proposals were announced after submissions had closed, so the committee could also force the Government to introduce the changes as separate amendments rather than inserting them in the select committee rewrite.

This could potentially subject them to further select committee scrutiny - and further delays - if they are considered to have major policy implications.

National has expressed concern at the slow speed the legislation is going through the select committee and is also keen to see what Australia intends to do in a discussion paper due in June and legislation due in December.

Cabinet is yet to determine which other bills will get priority before the election.

They are likely to include steps to set up the new Organised Crime Agency, ratifying the China free trade agreement, the emissions trading-scheme and the reforms of the real estate industry.

The bill to make tagging an offence and to ban spray can sales to under-18s is tipped for priority, as is a series of transport bills aimed at streamlining the planning and funding of roads and public transport.

These include empowering regional authorities to impose a regional fuel tax.

Others Labour will be keen to get through are the weighty reforms in the Public Health Bill, which updates the law relating to public heath issues such as communicable diseases; and the Policing Bill and the Immigration Bill.

Ministers are also being told not to put forward new, non-essential bills unless they contain core Labour policies.

The time constraints could see other bills - including the bill to raise the driving age to 16 and one to further regulate finance companies - left to the whim of future Parliaments.

On top of the waiting load, new legislation will be required to implement Budget measures such as tax cuts, for which Labour is expected to seek urgency on Budget day.

Labour is also still trying to pin down secure support for the emissions trading-scheme and for the real estate reforms, which will set up an independent Government body to deal with complaints and discipline, stripping the Real Estate Institute of its powers.

Question marks hang over the future of potentially controversial bills which could alienate voters but are key Labour initiatives.

These include the Affordable Housing Bill - which lets councils require developers to include cheap homes in new developments but has led to widespread concern from councils that its costs would be borne by middle- and high-income rate payers. The Biofuels Bill could also be held back.

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