ACT's contradictory position on carbon credits for forestry undermines the credibility of its policy on the emissions trading scheme, Minister for Climate Change Issues Nick Smith says.
"In 2007 ACT leader Rodney Hide called post-1990 forest owners' carbon credits a 'property right' and stated these must not be 'confiscated' by the Government. He further described National's policy to devolve carbon credits to forest owners as a 'smart green policy' and said ACT would back it. Yet only last week its Climate Change spokesman John Boscawen called these same carbon credits 'subsidies' and that it would be 'criminal' to provide 'windfall profits to foresters'," Dr Smith said.
"This issue of $1.6 billion of forest carbon credits goes to the core of the New Zealand ETS as the revenue from consumers and businesses essentially goes to foresters. This is fair noting that New Zealand's emissions are up 25% on 1990 levels and that without these trees New Zealand would have a huge Kyoto liability.
"ACT needs to think again about playing fast and loose with New Zealand's third largest export industry. ACT more than anyone should understand the risks for business of uncertainty, contradictory policy and removing property rights from landowners.
"The Government's ETS policy is helping restore confidence to the forest sector and reverse the deforestation between 2004 and 2008. John Boscawen should honour the commitments his leader made to the forest industry pre-election."
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National’s ETS Forestry Excuses Not Acceptable
The Minister for Climate Change Issues Dr Nick Smith is running out of excuses for continuing with The Government’s ETS programme says ACT New Zealand Climate Change Spokesman John Boscawen.
"Dr Smith is defending the decision to proceed with the ETS on 1 July on the grounds that suspending it now would break commitments to foresters. The rationale for continuing with the ETS gets thinner by the day," Mr Boscawen said.
"Dr Smith appears to not understand the points ACT Leader Rodney Hide made in his open letter to the Prime Minister on 29 April 2010:
• If the ETS is suspended, forest owners would be perfectly free to sell carbon credits to willing buyers, for example, parties subject to the EU ETS.
• Suspension for a short period - say to when Australia takes post-2012 action, if it does - would not be material for foresters as most operate on a 30-years plus rotation.
• The major taking of property rights occurred with pre-1990 forests.
• None of the planting in the 1990s, and little before 2005 was done with an expectation of subsidies.
• Planting in recent years has fallen away. Much of it has been encouraged by afforestation grants, not the ETS.
• Foresters – especially integrated wood processors – will benefit from lower input costs for electricity and fuel if the ETS is suspended.
"If any forester considered their property rights were affected by ETS suspension, the government could entertain negotiations for compensation. For the above reasons, the claims could not be large. The costs to the economy of proceeding with the ETS would be far larger.
"National Party members around the country are increasingly urging their Party in government to abide by its election promise to not be a world leader on this issue.
"ACT believes it is folly to proceed with the scheme ahead of Australia and other trading partners at a time when the economy is still weak and being hit with increases in GST, ACC levies and electricity prices.
"ACT supports fair treatment for the forestry industry. If the ETS was ultimately scrapped in favour of a low carbon tax, it should be matched by an equivalent subsidy for forestry sinks - which would leave foresters no worse off than under an ETS," Mr Boscawen said.
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