Chauvel Charles: Climate Change (Emissions Trading and Renewable Preference) Bill — Second Reading 
Chauvel Charles: Climate Change (Emissions Trading and Renewable Preference) Bill — Second Reading 
[Volume:649;Page:18080] 
CHARLES CHAUVEL (Labour) 
: 
It is true that climate change has emerged as one of the greatest environmental challenges that we face in our time. It is truly a global issue. It does not discriminate. It affects all countries all economies and all people. The human race cannot just sit back and take the time to continue to pollute the world. New Zealanders Australians and residents of all other countries that are major emitting economies in the world must respond to climate change. I am very proud that today the New Zealand Parliament takes another step in the direction of doing so because by adapting our actions now we can help to mitigate the effects of climate change in the future. It is not only the right thing to do but also the cost-effective and smart thing to do. 
An emissions trading scheme such as the one that this bill will eventually enact into law is particularly essential to a small country like New Zealand that is reliant on international trade for its prosperity. Not having one would make us look out of sync with the rest of the world. It was interesting to hear Dr Smith talk about Holcim Cement and Rio Tinto. Does he think that if they went overseas tomorrow moved to developing countries then became greater emitters that would be some sort of long-term solution? How long does he think it will be until other countries have emission trading schemes and are bound by carbon limits? It would at best be a short-term fix. National members know that and that is why those companies will not be doing that. 
As the entire planet moves to address climate change it is imperative that we claim our place in the world as a world leader and not simply as a follower because in a world facing carbon constraints as well as rising fuel energy and food prices sustainability and prosperity become increasingly intertwined. I do not want to see New Zealand agriculture locked out of Europe in 5 years’ time because we do not have an emissions trading scheme and they do and they think that our products are dirty and carbon intensive. [ 
Interruption 
] We have anecdotal evidence of the danger of that happening if we do not move on this urgently. 
I say that to members opposite and they should listen carefully because that is the evidence that we heard in the select committee. We were there and we heard it fair and square and loud and clear and that is why it is important to act today. A comprehensive and ambitious approach to climate change is an important investment in our future and emissions trading will allow New Zealand to play a full part in the global solution to climate change at least cost to our economy in the long term. 
I was interested to hear Dr Smith’s comments about flexibility because in fact an emissions trading scheme is the most flexible way to reduce our carbon footprint at minimum cost and help put New Zealand on the path to a sustainable future. There is every chance that international circumstances will change new technologies will develop and understandings about what will and will not work will become clearer. This flexibility is vital and it is built into the bill. The review provisions that allow the Minister to review international developments and ensure that our scheme is keeping pace with what is happening in the rest of the world are excellent ones. They are open textured and they allow the sort of flexibility that Dr Smith has called for. 
It is clear that Dr Smith is simply making excuses with his list of six factors that are the supposed reasons why the National Party will not be supporting this legislation just as he is with the spurious line about the scheme being a windfall for the Government. This scheme does not even break even until 2020 in 12 years’ time. That is how long it will take to break even so it is a lot of nonsense to talk about windfall profits for the Government. The member did not even know that fisheries is in this scheme as far as the Supplementary Order Paper that has been foreshadowed by the Minister is concerned. So much for his in-depth knowledge of this legislation. 
It is clear that the decision to implement an emissions trading scheme in New Zealand was not undertaken lightly and I reject the spurious criticisms of the select committee process that we heard from the previous speaker. This bill was the subject of broad consultation. It was important and that fact was reflected through a rigorous and comprehensive select committee process which I was honoured to chair. 
The Finance and Expenditure Committee received 259 written submissions and heard 96 oral submissions on the bill. The majority of submitters were in favour of the introduction of an emissions trading scheme and that is why some 1000 amendments to the original bill have been recommended in the report back and yet further improvements have been foreshadowed by the Minister. The committee listened to the people who came before it. The committee granted them the courtesy of polite hearings and it took account of the points that they made and reflected many of those points in the bill that has been reported back to the House. 
I want to conclude my brief contribution by thanking the members of the Emissions Trading Group—the officials who advised the committee. They provided excellent assistance on a very timely basis. They were extraordinarily responsive to the requests from all members from all sides of the committee and I pay tribute to them. They are public servants in the best traditions of New Zealand’s Public Service—fearless unbiased but responsive to requests from elected officials—and it was a real pleasure to have been able to work with them and record our tribute to them. 
I also thank the members of the Finance and Expenditure Committee for their efforts in giving courteous hearings to all submitters and I especially acknowledge the support provided to me as chair by Jeanette Fitzsimons and Doug Woolerton from the Green Party and the New Zealand First Party respectively during the process. That assistance along with the support of Government members allowed us to ensure that we provided the appropriate scrutiny of this legislation and reported the best bill that we could back to the House. It is excellent legislation and I commend it.