5. JOHN BOSCAWEN (ACT) Link to this
to the Minister for Climate Change Issues
Does he agree that New Zealand should not be doing more than the rest of the world on climate change, and, if so, why did he tell the House on 24 September 2009 that “This emissions trading scheme will be the first of any country outside Europe, and on 1 July 2010 will be the most comprehensive by including transport, industrial, and energy emissions.”?
Hon Dr NICK SMITH (Minister for Climate Change Issues) Link to this
Yes, it is the Government’s policy that New Zealand should do its fair share on climate change. Our emissions are 24 percent above 1990 levels, and have grown at one of the fastest rates of any developed country. Our moderated emissions trading scheme is balanced and takes a responsible approach, which will drive investment in renewable energy, energy efficiency, and the planting of trees, without an excessive cost burden on the economy.
What is it about New Zealand’s treatment of transport, industrial, and energy emissions that makes New Zealand’s emissions trading scheme more comprehensive than the European scheme on 1 July this year?
Hon Dr NICK SMITH Link to this
The member has claimed that the European emissions trading scheme does not have any effect on households. That is incorrect. Although the cost of the European emissions trading scheme is directly charged on the producers of electricity, that is, of course, passed on to consumers in exactly the same way as in New Zealand. A key difference between the European emissions trading scheme and the New Zealand scheme is that we have only a half obligation, and for that reason the cost of the New Zealand scheme for consumers and businesses will be less than half of that which is imposed on the 29 countries in the European scheme.
I raise a point of order, Mr Speaker. I asked the Minister a very specific question. He made the claim last year that our scheme was more comprehensive, and he has just set about explaining why it is less comprehensive. I ask the Minister to explain why our system is more comprehensive. Those were his own words last year.
Mr SPEAKERI have to admit that the question asked by John Boscawen was a very clear question. He asked exactly that—why the New Zealand scheme is more comprehensive by including these things—and I am not sure that the Minister—
Hon Dr NICK SMITH Link to this
There are a number of differences and there are a number of similarities with the European scheme. For instance, different European countries have a carbon tax specifically on transport. We have included all those sectors in the emissions trading scheme, albeit only at a half rate—that is, the scheme on 1 July requires emitters to be responsible for only one-half of their emissions.
Dr Cam CalderWhat response has the Minister had to the Government’s moderated emissions trading scheme, including at the 16 meetings he has spoken at around the country?
Hon Dr NICK SMITH Link to this
There is some opposition at both ends of the political spectrum, with some New Zealanders concerned that we are moving too soon, and others concerned that our scheme is too slow and too soft. I think that most New Zealanders support the Government’s approach of carefully balancing New Zealand environmental responsibilities and our economic interests. I note that only about 80 people joined today’s anti - emissions trading scheme protest outside. That is actually about the same number who, 6 months ago, were protesting that our policy was too soft. That reinforces the fact that we have got the policy balance about right.
I seek leave to table a letter from Nova Energy, dated 31 May, advising about increases in the price of gas as a consequence of the emissions trading scheme, which starts on 1 July.