Simpson Scott: Climate Change Response (Removal of Transitional Measure) Amendment Bill — First Reading Second Reading In Committee Third ReadingText is incorporated into the Bound VolumeSimpson Scott: Climate Change Response (Removal of Transitional Measure) Amendment Bill — First Reading Second Reading In Committee Third Reading[Sitting date: 26 May 2016. Volume:714;Page:11362. Text is incorporated into the Bound Volume.]SCOTT SIMPSON (National—Coromandel): Buried in amongst that bluff and bluster and hot air from the Labour member Dr Megan Woods who has just resumed her seat was an endorsement of this bill. I am delighted that the Labour Opposition has seen fit to support this legislation. It is important legislation. This afternoon we have had Bill English deliver his eighth Budget. It was pragmatic it was sensible and it was good for New Zealand. This too this transitional bill that we will put through the House under urgency is a phased pragmatic practical approach that is so much the hallmark of this administration.I listened very carefully to the introductory speech the first reading speech made by the Minister the Hon Paula Bennett and I thought that she made excellent points about how it came to be that this transitional arrangement was put into effect in the first place. It is worth just reminding the House about why it is that we are here today changing out of the situation that was put in place in 2009. Back then of course we were right in the very deepest darkest phase of the global financial crisis and it was a troublesome and very concerning period of time not only for New Zealanders and New Zealand business people but indeed for the whole global economy. At that stage this Government took some very pragmatic and sensible steps many of which we have seen the rewards reaped today in the reading of Bill English’s eighth Budget. This was one of them.This was a measure that was taken back in 2009 to ensure that businesses that were struggling to ensure that they kept people employed that they kept the economy ticking over and that it kept going were not put in an unreasonable position of being pressured so that jobs would be at risk. The time now has come when the economy is ticking along very nicely. We have heard from the Minister of Finance Bill English today that we have got growth at 2.8 percent and it is projected to be 3 percent for the next several years. That is a time when this transitional phase can properly and sensibly be removed.This is a Government that takes its obligation to our environment and our obligation to world affairs in terms of commitments that we make to climate change very seriously. We also take very seriously our role in ensuring that we get the balance right between ensuring that our business people can create jobs and build an environment where people can prosper grow and thrive—so it is about being pragmatic about being balanced and about having an approach that is right for the times. From tourism through to agriculture and horticulture our natural environment supports almost all of the things that we do. So protecting the environment and protecting jobs is part of what this Government sees as very important.I want to go back just for a minute or two and reiterate what the primary purpose of the original creation of this situation was. The current 50 percent unit cost was established to ensure that businesses were not going to be unduly put at risk. So now from 1 January next year the current 50 percent unit cost will increase to 67 percent then to 83 percent from 1 January 2018 and then all sectors in the emissions trading scheme will pay the full cost from 1 January 2019.It is fair to note that the Government had options in terms of how it would approach this transition. Many of those options were considered before this piece of legislation was brought to the House. One of the options was just simply to go from the current situation back to a full cost situation in one big leap. But we are as I have said a pragmatic sensible Government and we think this phased approach will be good for business good for the economy and good for our environment.The Minister made I thought a very good point in noting that currently the unit cost for units is $14.48. The expectation is that the Government’s books will benefit by about $356 million over the next 4 years. That is a figure that is based on a unit price of just $12. The expectation is that that current price of $14.48 will probably get to somewhere in the region of $16 to $18. It is at that point that there will be an absolutely terrific incentive for our foresters to start planting trees—to start creating forests and growing trees. That is really what all of this is about. It is about making sure that we get the balance right that the pragmatic approach is right that it is sensible and that it is practical.Last year the Government undertook a submissions process. A series of meetings and consultations were held around the country and 75 percent of the submitters who were involved in that consultation process said that the one-for-two model should be ditched. Those meetings of course included iwi business people and the full gamut and range of New Zealand enterprises. Most of them said that the price was too low. Part of the reason that we want to change this is that the current price is too low. The Minister has made it very clear right from the first day of her appointment to her new ministerial role that this phase-out would occur. It was really just a question of how the phase-out would occur what the nature of it would be what the structure of it would be and now in this legislation we have that ready to go.This is a good piece of legislation. I am looking forward to listening to other speakers. I will be interested to see how other parties in the House decide to jump on this legislation to see where they want to put their support or not. I will be listening carefully to other speeches. I commend the bill at its first reading to the House.