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Home / New Zealand

Govt misery grows over emissions bill

Claire Trevett
By Claire Trevett
Political Editor, NZ Herald·NZ Herald·
7 May, 2008 05:00 PM4 mins to read

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Tariana Turia

Tariana Turia

KEY POINTS:

Labour is trying to shore up support for the emissions trading scheme to ensure it can pass without becoming a bargaining chip in post-election coalition talks.

Yesterday the Maori Party added its voice to Green Party threats that it could pull support from the scheme after two backdowns
on the scheme from the Government.

The Government proposes to delay the addition of transport fuel to the scheme from 2009 until 2011 so extra pressure would not be put upon householders' budgets. It also plans to soften the rules for heavy industry by waiting until 2018 instead of 2013 before it starts to phase out allocations of free emissions.

Asked if it would continue to support the scheme, Maori Party co-leader Tariana Turia said: "It's looking as if we won't. The Government can't go round promising or telling people one thing and then backing down because it's election year. You either genuinely believe this needs to happen and you've got a strategy to address the issues around climate change, or you haven't."

The Maori Party concerns follow threats from the Greens to withdraw support if the scheme was diluted further. United Future and NZ First are also yet to express support, worried about its effect on householders.

The Herald understands Labour is visiting the minor parties to try to shore up support.

Prime Minister Helen Clark is hoping for broad cross-party backing for the scheme, including National, so the matter does not become a political football.

But if support from small parties is shaky, the scheme could become vulnerable to changes as the result of post-election coalition talks or future governments.

Green co-leader Jeanette Fitzsimons yesterday said she could not guarantee the scheme would not be a bargaining chip if her party's support was needed to form a government after the election.

"Of course if we happened to be in coalition talks climate change will be a pretty important issue. I can see the desirability of having stability in the emissions trading scheme and we would want that too, but not at the expense of introducing a really bad scheme."

But Helen Clark has said she doubts the bill would have had majority support if the fuel sector had not been delayed.

Other parties - including NZ First, United Future and National - had concerns about the bill's effect on householders already struggling with higher food, petrol and mortgage costs.

Yesterday, when asked if the scheme could become a post-election bargaining chip, the Prime Minister said "no".

She said most parties supported the concept of the scheme, but were still looking through the details and would also need to see what changes were made in select committee.

"Because of the importance of this to New Zealand, moving to long-term responses to climate change challenge, [I hope] that we will have broad support for the bill."

Helen Clark has not ruled out further changes, although she has given an unequivocal assurance that agriculture will not be brought into the scheme earlier than its 2013 date, despite calls from the Green Party.

The select committee heard submissions in Auckland yesterday and will sit again in Wellington tomorrow.

WHERE THEY STAND

* Act: "The Government's ETS is a crock and should be dumped."
* Green Party: Close to pulling support because of Government backdowns on fuel and industry emissions, but waiting to see final shape of the scheme.
* Maori Party: Could withdraw support because of Government backdowns.
* NZ First: Will discuss future support at caucus next Tuesday, but has concerns about people on fixed incomes.
* United Future: Reserving position until sees final shape. Supports fuel delay but wants more information on costs for householders and "compensation" for extra costs.
* National: Supports concept of an emissions trading scheme. Pleased with delay of fuel sector. Says final scheme must be "durable" and balance economic and environmental issues or it will not support it.

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