Legislation soon unless industry comes up with voluntary fund

5.30pm

The agriculture industry has a few weeks to come up with proposals to voluntarily fund greenhouse gas research before the Government presses ahead with legislation for an animals emissions levy.

A spokesman for cabinet minister Pete Hodgson, who is in charge of climate change policy, today told NZPA the legislation for the levy was being drafted and would be introduced later this year unless the industry decided on a voluntary fund.

The Government wants to raise about $8 million a year from farmers to help fund research into agricultural greenhouse gas emissions.

It is proposing a levy on livestock, which would cost farmers an estimated average of $300 a year each, as it is seeks to reduce greenhouse gas emissions in line with the provisions of the Kyoto Protocol.

The Government wanted the research funding to be available by the middle of next year so any legislation would have to be passed early next year, the spokesman said.

The legislation was being drafted although it was still the Government's preference for the agriculture industry to voluntarily pay for emissions research, he said.

"If they don't come up with some sort of commitment of funding for the research then there will be a levy but if they do, there won't."

Mr Hodgson said recently he would prefer "voluntary funding" from the sector and it was not too late for farmers to avoid the levy.

This prompted National and ACT to warn farmers the Government was trying to "repackage" its animal emissions levy.

ACT's The Letter today said Mr Hodgson was "now pressing" Fonterra and the Meat Board to agree voluntarily to fund methane research "so he can call off the Fart tax before (ACT MP) Gerry Eckhoff and the farmers arrive with their tractors".

Farmers opposed to the levy are planning to march to Parliament on Thursday.

Mr Hodgson's spokesman told NZPA there had been no change in the Government's position and the minister's preference had always been for a voluntary fund.

There were some in the industry that felt if they were going to have to pay the research money anyway, they might as well be involved in how it was collected.

Mr Hodgson's spokesman said the minister would speak to farmers if they marched to Parliament.

The Letter also said there was a "serious cabinet row" over Kyoto but the spokesman denied this was the case.

- NZPA