Upston Louise: Climate Change Response (Emissions Trading Forestry Sector) Amendment Bill — Second Reading In Committee Third Reading 
Upston Louise: Climate Change Response (Emissions Trading Forestry Sector) Amendment Bill — Second Reading In Committee Third Reading 
[Volume:655;Page:4754] 
LOUISE UPSTON (National—Taupo) 
: 
 I rise in support of the Climate Change (Response Emissions Trading Forestry Sector) Amendment Bill in its third reading. We have heard from Minister Nick Smith and Charles Chauvel who have had a conversation looking at the wider issues of climate change but I want to take the discussion back to the bill and what it will mean to have it passed. Having forestry in the emissions trading scheme is a world first so it is critical that we get it right. 
The bill delays the reporting requirements under the emissions trading scheme and publication of the allocation plan by the Government because the Emissions Trading Scheme Review Committee process is yet to be completed. As previous speakers have said it is critical that we get it right. It is really important that the select committee completes its important work and does not rush it and the bill allows the industry to take a breath. The current law under the Climate Change Response Act requires foresters to have reported any deforestation during 2008 by 31 January 2009 and for those owners who have small forestry blocks to apply for exemptions by today—30 June. We have spoken about the fact that those dates are unreasonable given that the select committee review has not been completed and there is a lack of public awareness of what they are required to do. It is important that we protect the public from being in breach of the law or being adversely affected. That is why it is really important that this bill is passed to change the date so that those forest owners are not breaking the law and it is great to see widespread support in the House for this bill. 
I want to recap the three main elements. First the existing law requires any deforestation to be reported by 31 January 2009 and we are extending that to 31 January next year. Second the select committee has recommended 1 July 2010 as the last possible date that can be set as a deadline for applications for exemptions. That is for the small forestry blocks of fewer than 50 hectares of pre-1990 forest land. Of course if the date could be achieved earlier then there will be intentions to see whether that can be achieved prior to 1 July. Third the forestry allocation plan for owners of pre-1990 forest land is the compensatory mechanism for the forest land owners who will be subject to liabilities for deforestation under the emissions trading scheme. 
I want to highlight that New Zealand punches well above its weight in what we achieve in the forestry industry and it is really important that we remind ourselves about that. The New Zealand forest industry supplies 1.1 percent of the world’s forest product trade but we have only 0.5 percent of the world’s forest resource and it is really important that we allow our forest owners to do the best they can. They are already doing better than most countries in terms of forestry. It is really important that we protect that competitive advantage that New Zealand forest owners are already delivering. The forestry sector contribution to GDP is 4 percent and forestry makes up 12 percent of all New Zealand’s export earnings. It is of course a large employer in many areas across New Zealand. We have to make sure that we change the bill in the context of how important the forestry industry is. Proportionately New Zealand has one of the largest areas of protected natural forest in the world with nearly 6 million hectares. The forestry industry also contributes significantly to Maori employment and economic advancement. Ten percent of the Maori economic asset base is in the forestry sector so it is important that the forestry sector is on board with these changes. 
National believes that New Zealand as a responsible international citizen and as a country that values its clean green environment must act to reduce its greenhouse gas emissions. I want to talk for a moment about the actions that this Government has been taking. We have allocated $323 million to the home insulation fund and $36 million to the bio-diesel grants programme. We will be introducing legislation to exempt light electric vehicles from road-user charges. I am involved with the Local Government and Environment Committee that is making changes to the Resource Management Act including the renewable energy consent process as well as working on the national policy statement for renewable electricity generation. So we can see that this Government is working hard to forward what we need to do in terms of protecting our clean green environment for our generation and for those to come. I am delighted to support the third reading of the Climate Change Response (Emissions Trading Forestry Sector) Amendment Bill. It is important that we get it right and get it done well. I commend this bill to the House.