Emissions trading farce in New Zealand

Change in emissions law likely | Otago Daily Times Online

Parliament last week passed 785 amendments in one day and a supporter of the policy, the Business Council for Sustainable Development, also agreed there would be further changes.

Its chief executive, Peter Neilson, likened it to GST or tax legislation.

"Like GST legislation, it is anomalies and exceptions which have caused the problems. The basic ideas are simple."

Commentators agree that exporters, and agriculture in particular, will be financially hard hit by the ETS, but Mr Neilson said as agriculture made up 50% of New Zealand's emissions, it had to be included.

If farmers were expanding production and increasing emissions it was right they met the environmental cost.

Mr Neilson said for some marginally viable sheep and beef farmers it could be more profitable to switch from farming animals to farming trees.

"Just because they have been meat and wool farmers, if the market place says the returns aren't there, they might be better off growing trees."