Brownlee Gerry: Business of Select Committees — Appointments 
Brownlee Gerry: Business of Select Committees — Appointments 
[Volume:651;Page:295] 
Hon GERRY BROWNLEE (Leader of the House) 
: 
 I move  
That a special select committee to review the Emissions Trading Scheme and related matters be established with the following membership: Hon Peter Dunne Craig Foss Nicky Wagner Dr Paul Hutchison Hekia Parata Hon Rodney Hide Hon David Parker Moana Mackey Charles Chauvel Jeanette Fitzsimons and one member of the Maori Party and that Hon Peter Dunne be chairperson. 
And the terms of reference of the committee shall be to:  
hear views from trade and diplomatic experts on the international relations aspects of this issue 
consider the prospects for an international agreement on climate change post Kyoto 1 and the form such an agreement might take 
identify the central/benchmark projections which are being used as the motivation for international agreements to combat climate change; and consider the uncertainties and risks surrounding those projections 
require a high quality quantified regulatory impact analysis to be produced to identify the net benefits or costs to New Zealand of any policy action including international relations and commercial benefits and costs 
consider the impact on the New Zealand economy and New Zealand households of any climate change policies having regard to the weak state of the economy the need to safeguard New Zealand’s international competitiveness the position of trade-exposed industries and the actions of competing countries 
examine the relative merits of a mitigation or adaptation approach to climate change for New Zealand 
consider the case for increasing resources devoted to New Zealand-specific climate change research  
examine the relative merits of an emissions trading scheme or a tax on carbon or energy as a New Zealand response to climate change 
consider the need for any additional regulatory interventions to combat climate change if a price mechanism (an ETS or a tax) is introduced  
consider the timing of introduction of any New Zealand measures with particular reference to the outcome of the December 2009 Copenhagen meeting the position of the United States and the timetable for decisions and their implementation by the Australian Government 
and report to the House accordingly. 
The motion that is before us lays out in some detail the terms of reference for the select committee to consider and further it names all the participants in the select committee. The committee will consider those terms of reference against the backdrop of the commitment from the new Government in the Speech from the Throne to ensure that New Zealand honours its Kyoto obligations in this first commitment period. 
I think that from the committee will emerge a road map for where to from here as negotiations continue throughout this year towards the decision in Copenhagen in December about the second commitment period. Although there are a lot of pessimists out there about what might happen to the climate change policy of the various countries that are signatories to the Kyoto Protocol as a result of the non-signatory countries coming to the table I think we in New Zealand should be optimistic that we have a profile such that we can firstly negotiate a better position and secondly do something about it. The real effort that has to be made by the world regardless of a price on carbon or a cost on any activity that is likely to produce carbon in one way or another is to consider how to reduce the emissions that we as humans emit into the world as a result of the activities we engage in. 
There are those who say we should start questioning the science. I want to make it abundantly clear that these terms of reference do not allow for questioning of the science. Further I want to make it clear that the National Government does not engage in the activity of questioning the science. What we do want is to see the development of a system whereby the particular and unique circumstances of New Zealand are recognised. We are an agricultural country that relies very heavily on the produce from our farms to sustain our economy. We know that the same amount of production coming off farms in other parts of the world emits considerably greater levels of carbon dioxide than is the case for our own domestic production. We need to have an international system that recognises the quality of our production. That will be I am sure something that the select committee as it considers things will look at. 
The other interesting thing is the way in which energy is delivered not only for heating but for transportation for industrial purposes and for commercial purposes. New Zealand has a somewhat unique profile in the world in that regard. We have higher levels of renewable energy. Sustaining those over a period of time will be more and more difficult so it is important that we have environmental standards for energy and fuel use that can guarantee that the steps we are making will make a difference to the country’s carbon dioxide profile. 
A number of interesting people will be on the committee. I think it is a fine mix of those who have a long-term interest in this particular issue those who were on the previous select committee that looked at the establishment of the existing legislation and in Dr Paul Hutchison someone who has a deep understanding of all of the scientific positions that are available for consideration. The committee includes Jeanette Fitzsimons a co-leader of the Green Party who has a particular interest in New Zealand achieving a good result as far as the ongoing process of dealing with our carbon dioxide emissions is concerned. The committee will be ably chaired by the Hon Peter Dunne who brings to the table his experience of being in Parliament for as many years as you Mr Speaker I believe and also is Minister of Revenue. 
It is around that picture that there is the greatest threat to New Zealanders in my opinion. I think there is a huge will to reduce carbon dioxide emissions wherever possible but I was interested to note that Labour members were talking about their concerns about New Zealanders who live in reasonably strapped circumstances and who do not have a lot of disposable income. I have to say to Labour members that given the way in which the current emissions trading scheme was progressing those people were going to bear the biggest cost—every time they filled up their petrol tank every time they switched on a light and every time they purchased something off the supermarket shelf. 
It is not an inconsiderable issue that we are dealing with. It has very wide-ranging economic implications as well as those objectives that are for the benefit of generations to come. I think the select committee will produce some interesting information that will be a good guide and form part of the road map for where this country goes in the future. I state again that the National Government has made it very clear that we will meet our Kyoto obligations in the first commitment period and we will be very very vigorous in making sure that New Zealand’s unique position is recognised internationally in any agreement that will apply post-2012.