5. RAHUI KATENE (Māori Party—Te Tai Tonga) Link to this
to the Minister for Climate Change Issues
Has he received advice that the emissions trading scheme will cost Ngāi Tahu up to $120 million; if so, what strategies will he establish to ensure that the scheme is not prejudicial for assets transferred under Treaty settlements?
Hon Dr NICK SMITH (Minister for Climate Change Issues) Link to this
I am advised that Ngāi Tahu is affected by the emissions trading scheme in the same way as all pre-1990 forest owners, in that if their areas are deforested they incur very substantial liabilities. The cost is difficult to assess as it depends on which areas of forests would give higher returns from alternative land uses. This issue adds complexity to the Treaty settlement process as it significantly affects land values and the quantum of settlements. The Government wants to act in good faith with Māori on these complex Treaty and climate change issues, while also acknowledging that issues over the emissions trading scheme application to forestry also impact significantly on the property rights of all landowners.
What responsibility do forest companies have for situations such as that of Ngāi Tahu, which has no control over trees on its land that are cleared by forest companies, but thereby incurs a liability of $40 million to $120 million?
Hon Dr NICK SMITH Link to this
Landowners who may be faced with forest companies removing their trees have the option of either replanting trees themselves, contracting with an alternative forest company to plant trees on the land, or, in the event that they want to change the land use, incurring those liabilities. I think there are legitimate questions and debate to be had about the application of the emissions trading scheme in respect of forestry, and that is one of the reasons the Government is reviewing the scheme through the select committee process.
Hekia ParataĀ, tēnā koe e Te Mana Whakawā, tēnā tātou e te Whare.
[And greetings to you, Mr Speaker, and to us the House.]
Has the Minister received any specific reports on Ngāi Tahu’s concerns about the impacts of the emissions trading scheme on its settlement?
Hon Dr NICK SMITH Link to this
Yes, the previous Government commissioned a report by Helen Aikman QC on the very specific concern of Ngāi Tahu that they were prejudicially adversely affected by the emissions trading scheme, in that the Government knew but did not disclose the adverse effect that climate change policy would have on forest values. This independent report rejected this claim and concluded that the Government had acted in good faith. I have provided this report to Ngāi Tahu and want them to have the opportunity to comment on its analysis and conclusions.
What progress has been made to respond to the concerns of Te Ohu Kai Moana, Aotearoa Fisheries, Sealord Group, and Endurance Fishing that during the process of reviewing the scheme the effect of emissions trading on Māori fishing interests must be explicitly recognised?
Hon Dr NICK SMITH Link to this
An issue with the emissions trading scheme is that for industries like cement, steel, aluminium, and dairy a 90 percent allocation of its emissions is provided through to 2018 and then phased out, as compared with the fishing industry, which receives an allocation of only 50 percent of its emissions and for a period of only 3 years. I know that the Māori Party has a keen interest in that issue, and it is one on which the Government is keen to have a dialogue to ensure that our important fishing industry is treated fairly.