Jeanette Fitzsimons

Agriculture MoU (Mooo)

by Jeanette Fitzsimons

Today I questioned the Government about its 2003 Memorandum of Understanding (MOU) with the agriculture sector. The Government has claimed in the past that this MOU prevents it from bringing agriculture into the Emissions Trading Scheme (ETS) prior to 2013, however, the answers to my questions revealed a different situation altogether:

1. I asked if it had been reviewed as required in clause 12.2. The answer was: No, it will be reviewed after climate change legislation is in place. Now, if the MOU prevents the ETS bringing in agriculture early, isn’t a circular argument to then say that the ETS process prevents the MOU being reviewed?

2. The Minister then acknowledged that the original MOU target of 20% was last year reduced to 10% by the industry without agreement in writing of both parties as required in 12.3. He did correctly note that the target is in the “Background” section rather than the “The Parties agree that” section, but fact remains that the sector is not on track to meet these targets (which are intensity targets anyway)

3. The Minister confirmed that the MOU itself does not prevent the Government bringing agriculture in early – that Government policy is in the “Background” section too and is a political choice, not an agreement with the sector. Even National is now saying some agricultural emissions should come in earlier in their minority report on the ETS Bill.

4. The Minister agreed that clause 1.2 of the MOU – “there are currently no proven, practical and cost effective farm practices and technologies to reduce agricultural emissionâ€? – is no longer correct. Nowadays there are many, especially for nitrous oxide.

5. But when asked if he would therefore consider terminating the MOU and bring agriculture into the ETS early, the answer was no, despite the evidence above. Even dairy cows are more reasonable than that.

Published in Parliament by Jeanette Fitzsimons on Wed, June 18th, 2008   

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