CASH OFFER FOR 'CONVERTING' ON THE CARDS
27 August 2008
VERNON SMALL
Consumers will get a one-off cash payment in 2010 to help offset the cost of climate change policy under a package to be unveiled today.
The payment will be linked to household income, with low income homes receiving the most.
The deal was hammered out between the Government, NZ First and the Green Party as part of a package that includes $1 billion over 15 years to help improve insulation and energy efficiency.
The compensation package would use funds recycled from income to the Government from the scheme.
Greens co-leader Jeanette Fitzsimons said yesterday that her party would back the Climate Change (Emissions Trading and Renewable Preference) Bill, though it still had strong reservations.
NZ First is expected to confirm its support today, clearing the way for the Government to pass the scheme into law before the election.
Prime Minister Helen Clark said it was a "good package ... it looks after vulnerable consumers".
NZ First leader Winston Peters said a decision would be made "shortly" but there was still work to be done.
Ms Fitzsimons said she had mixed feelings about the scheme.
"But I think on balance it's the right thing to do. I think it's the right thing to do for the climate and for New Zealand's international reputation and even if it's only a small bit of the right thing to do it's still better than the wrong thing."
It is estimated the bill will cut emissions by more than 2 per cent.
The Greens failed to persuade the Government to bring agriculture and transport into the emissions trading scheme sooner.
The Government would issue a national policy statement on biodiversity under the Resource Management Act by 2011, establish an innovation fund for new technologies to distribute 150,000 in carbon credits each year and set a carbon reduction target.
It would also commit to a small reduction in emissions like nitrous oxide, but that would not be a commitment on farmers.
The bill sets limits on the amount of greenhouse gases that can be emitted, and will eventually cover all sectors of the economy. Those that exceed their limit will be forced to buy extra emission rights.
National has pledged to develop its own scheme and introduce it within nine months of taking office.
© 2008 Fairfax New Zealand Limited.
The Dominion Post
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