Government subsidy cuts costs for GM applicants

By BERNARD ORSMAN

The Government is using $2 million of taxpayers' money to subsidise the approval of genetically modified and hazardous substance projects.

Speaking before the lifting of the GM moratorium tomorrow, Sustainability Council executive director Simon Terry said the subsidies completed a "cradle to the grave" state assistance programme for GM development.

Laws passed this month meant developers were free of liability if things went wrong, as long as they abided by Environmental Risk Management Authority conditions, he said.

Cabinet papers released to the Sustainability Council under the Official Information Act, show applicants will pay an average of 17 per cent of the authority's costs.

Until the change, approved by the Cabinet on August 11, the authority had been told to recover all its costs from applicants.

Under a proposed new fee structure, applicants will pay from $500 to have low-risk new organisms and hazardous substances approved to $50,000 for full release of genetically modified organisms.

The Cabinet paper said fees should not be a barrier to growth and innovation.

High costs would reduce the number of applications to introduce organisms that could produce economic benefits.

One study showed that the authority's fees were about a third of the total costs of making an application.

Mr Terry said there were good reasons for the Government to pay for public participation at authority hearings and to encourage compliance, but giving a high level of subsidy to applicants was bad economics.

"If Government believes a particular project is so deserving, let it give the subsidy transparently after 'case by case' assessment," he said.

Environment Minister Marian Hobbs said the changes were being made so applicants would know what costs they would face. She said most of the costs relating to the few cases of genetically modified organisms were for public participation, which was the responsibility of Government and not the applicant.

But the Government made no apology for providing some help to GM developers, as it wanted to ensure certainty, recognise public benefits and not be a barrier to growth and innovation.

* In Wellington last night, police and people protesting against genetic engineering were involved in a tense standoff outside Parliament.

Security guards had told the 80-odd protesters they would be trespassing if they put up any structure or remained after sunset.

The protesters had planned to stay until the Government's GE moratorium was lifted tomorrow.

Tents were taken down and put back up again as the debate split the campaigners down the middle.



How fees work

The GM moratorium is lifted tomorrow.

Under a proposed fee structure for Erma, applicants will pay from $500 for low-risk GM organisms to $50,000 for full release.

Critics say giving a high level of subsidy to applicants is bad economics.

Environment Minister Marian Hobbs says the Government does not want to be a barrier to growth and innovation.