You did read that right. Not only will our large industries get a completely free ride in terms of emissions, they will get so many free credits that they will be forced to sell the excess on the market for about $145 million. A free ride plus free money, but still it is not enough.
We won’t throw stones at National, because the first ETS had similar provisions. But Labour’s freebies would have declined to zero by 2030. What Smith took away from big polluters in the early years of his ETS, he gave back many times, all that way out to 2089. Compensating big industry for both emissions and electricity price rises was somthing the Greens fought against, but lost. Nobody else gets compensated for electricity price rises under the ETS, so why should they?
The real question here is whether the Leviathans of New Zealand industry should get any more free money from the taxpayer than they are already getting. My thinking? No way!