ETS makes us the seventh state

It is clear from the minister’s briefing last night that the main purpose of National’s changes to the ETS is to make us effectively the seventh state of Australia. The bill mimics exactly the bill the Rudd government has been trying (unsuccessfully) to get through the Australian senate. So a bill that has been twice rejected by the Australian parliament is good enough for us.

None of the ETS amendments have anything to do with reducing climate change emissions. They are about progressing foreign, trade and industrial growth policies – strengthening CER towards a full common market, and encouraging growth in energy intensive industries.

The measures in the Bill which are copied from the Australian draft legislation include:

  • free allocations based on output  so that the more you grow your pollution the more free allocation you get;
  • free allocation based on 90% or 60% of the industry average emissions per million dollars of output;
  • the industry average is the Australasian average, not the world average;
  • adopting the Australian definition of “trade-exposed”  which is what qualifies a firm for free allocation;
  • a cap on the price of emissions until 2013 which is effectively $12.50 a tonne (Australia is A$10) when the world price is currently around $26
  • a 2 year delay for agriculture to 2015 – the date Australia may bring in agriculture itself;
  • phasing out free allocations to industry at Australia’s 1.3% a year rather than 8% in the existing NZ scheme;
  • use of Australian data and benchmarking wherever possible.

Funny how this is so easy when aligning with an Australian standard on light bulb efficiency was so hard.

8 Comments Posted

  1. So why didn’t JohnK stay at home, save the money and continue his management of the Aussie substate office?

    Kevin could obviously rep the National Govt position far more cheaply and eloquently at an international level than John can.

    And didn’t NZ vote for that?

  2. From an anonymous Australian friend:

    Lets get one thing clear here…..we will take you back (the entire South Island used to be owned for a short time by a NSW newspaper magnate, and the whole country used to belong to NSW), but you have got no chance of becoming a ‘State’ and I’m not even sure about ‘Territory’ status. I’m guessing that, given your banana republic economy, we would accept you as a ‘Protectorate’, similar to Christmas Island.

    Given that Oz dole payments currently are the major source of your overseas earnings I presume that ‘Protectorate’ status would continue an ever increasing welfare burden on our ECONOMIC TIGER economy….it will be a small price to pay however, for all those ‘choice’ kiwifruit.

  3. I hear Labour are still trying to salvage this steaming pile. What idiocy.

    Why don’t they go and look in the filing cabinet and use that perfectly good policy they developed all the way back in the early 2000s – a carbon tax. Instead, they want a policy that will keep everyone happy, and reduce emissions – this is an impossibility.

  4. “If not shouldn’t the green party and labour be opposing plans for NZ to have a joint ETS with Australia…”

    the Greens ARE opposing it, and I think Labour are, too

  5. Who wants a joint ETS with Australia???

    If not shouldn’t the green party and labour be opposing plans for NZ to have a joint ETS with Australia…

    NZ would become a cheap ‘carbon sink’ for Australia’s coal fired power stations and emissions.

    Looks like Rio Tinto will get a good deal in Australia and NZ. Coal industries will get what they want and so will cement companies (Holcim)and the other big players.

  6. How many ‘coincidences’ will we put up with? The agenda to bring this country into the aussie fold is obvious and they aren’t even trying to hide it anymore – they just believe that no one cares.

    Thank you for caring jeanette.

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