Graham Kennedy: Questions for Oral Answer — Questions to Ministers Questions to MembersText is subject to correctionGraham Kennedy: Questions for Oral Answer — Questions to Ministers Questions to Members[Sitting date: 23 October 2013. Volume:694;Page:14190. Text is subject to correction.]12.Dr KENNEDY GRAHAM (Green) to theMinister for Climate Change Issues: Will he explain given the latest projection of New Zealand’s net greenhouse gas emissions is around 90 million tonnes in 2040 how the Government can conceivably reach its own emissions reduction target of 30 million tonnes by 2050?Hon SIMON BRIDGES (Associate Minister for Climate Change Issues) on behalf of theMinister for Climate Change Issues: We will meet our targets through a combination of the New Zealand emissions trading scheme and other domestic initiatives. We will also likely use reductions from overseas where it makes good economic sense to do so. The emissions trading scheme is a long-term tool and it is not hard to imagine that with a good outcome on a new global agreement and leadership from the major economies we will need to adjust our own domestic policy response as well. We anticipate that the Ministry for the Environment’s projections will continue to change over the next 30 or 40 years.Dr Kennedy Graham: But does he take responsibility for the fact that the latest projections show that instead of meeting a 50 percent reduction in emissions we are heading for a 50 percent increase?Hon SIMON BRIDGES: No because of course the projections are useful but they are also limited given that they are based at the moment on a very low carbon price. We know that as we make progress in international negotiations carbon price will surely rise.Dr Kennedy Graham: Can he then explain to this House why New Zealand’s net emissions have increased since 2009 the period in which his Government has been weakening the emissions trading scheme with the result of a low carbon price?Hon SIMON BRIDGES: As I have just said and it was implicit in my last answer it is a product at the moment of a low carbon price right around the world. But what is of course very true is that as we make progress internationally it is highly likely that theprice will rise and with that the projections and the progress that we will make around this world.Rt Hon John Key: What is the likely impact of a much higher carbon price and a much more fulsome emissions trading scheme on residential consumers when they pay their electricity bill if one was to be promoted?Hon SIMON BRIDGES: Well of course prices will rise exponentially and it will be a terrible thing for consumers all around New Zealand. Let us hope that Labour and the Greens never—Mr SPEAKER: Order! The last part of that answer is out of order.Dr Kennedy Graham: Can he find any other reason for this monumental policy failure on the part of this Government and its breach of our framework convention obligations other than the gutting of the emissions trading scheme over which he has presided?Hon SIMON BRIDGES: Of course the member is simply wrong. We have not gutted the emissions trading scheme. The emissions trading scheme is effectively one of the very best in the world. What is true is that the carbon price all around the world is low. That is not going to stay the position. I am actually very optimistic about global negotiations over the coming years and that we can make a real difference on this serious issue.Dr Kennedy Graham: When he optimistically assures the New Zealand public that his 2012 amendments on climate change will ensure that New Zealand continues to do its fair share does he believe the world will agree once it sees this graph?Hon SIMON BRIDGES: I do not know why he is showing a graph of what power prices will do under the Labour-Greens when they are next in power but no I disagree with the member.