Parker David: Climate Change (Emissions Trading and Renewable Preference) Bill — In Committee 
Parker David: Climate Change (Emissions Trading and Renewable Preference) Bill — In Committee 
[Volume:649;Page:18140] 
Hon DAVID PARKER (Minister responsible for Climate Change Issues) 
: 
 I would just contrast the position taken by Mr Flavell who criticised the emissions trading scheme as not requiring polluters to pay enough and the position taken by Mr King who said people should have more flexibility to increase their emissions without paying. The reality is that there is a difficult balance to be struck. We think we have got it right. Polluters from all sectors of the economy once they come in pay for increases in their emissions and are rewarded for decreases in their emissions. That is the basic effect of the scheme. 
In terms of the issue of whether one should allow offset planting the bill allows offset planting under the rules of this scheme if and when it is allowed under the international agreement. Until such time as it is allowed under the international agreement the effect of what the National Party proposes would be that the landowner would go forward by say $3000 or $4000 a hectare and the taxpayer would be the poorer by about $13000 per hectare. As a country we would be the poorer to the tune of $10000 per hectare overall and that would be a cost that taxpayers pay through their taxes—and that would not be wise. 
I will also deal with Peter Dunne’s interventions. He said that not enough was being done to provide compensation for households and therefore he would not support the bill. He of course made that decision before he knew how much compensation for households there would be. I find it somewhat ironic that he should say we should have some great love-in here where we all get together and reach agreement when he would not participate in the negotiation of that compensation package. He did make reference to the $180 million part of the compensation package that relates to adjustments to benefits superannuation and Working for Families and also a universal rebate on everyone’s electricity account—$180 million. He did not make as much reference to the $1 billion energy efficiency fund which is important to all of the parties that are supporting this legislation—the Greens New Zealand First the Progressives and Labour. That $1 billion energy efficiency fund will help people to moderate their energy use which will decrease greenhouse gas emissions. People will burn less coal and gas in their own homes and they will also use less electricity which would have had to be generated from thermal energy sources. That energy efficiency fund is very important and it will help people meet their energy needs. 
Another point that I would make is that a couple of people have said that this legislation has somehow been through a shonky process. It has been through a very thorough process. The Finance and Expenditure Committee has heard 56 hours of submissions. There have been hundreds of meetings with stakeholders up and down the country. There have been meetings with Maori through hui throughout the country. There have been meetings with the climate change Maori leadership group and the Maori reference group. There have been meetings with the leadership forum composed of business and non-governmental organisation leaders. There have been technical advisory groups. This scheme has been worked through in great detail and I am confident that the process has been robust.