ETS: Changes positive but compensation still required

Media Statement
Federation of Maori Authorities

ETS: Changes positive but compensation for forest-owners still required

The Federation of Māori Authorities welcomes the Government’s decisions last week on Emission Trading Scheme as a step in the right direction, and notes the Government has yet to fully appreciate the cost of its decisions on Māori forestry owners, with further discussion on compensatory measures required.

Chief Executive Te Horipo Karaitiana says “It was heartening to hear last week that Government accepted our key point that the full second tranche of NZUs is required for any forestry owner not engaged in offsetting. Step one is having NZUs allocated as originally agreed with forest owners. Step two is ensuring the original value presented to these people and organisations is restored.

The Federation believes that other Crown actions are artificially suppressing the NZU market value – such as the price cap and the Government’s decision not to restrict the number of international credits in the New Zealand market. Karaitiana notes that such interference, for even the best reasons, negatively affect forest owners and require compensatory considerations.

The Federation estimates that these actions reduce the value of NZUs held by forestry owners by over 60%. Chair Traci Houpapa says, “while we understand the Government’s broad intentions the Crown needs to take responsibility for the associated costs of such changes”.

Māori are estimated to own between 30 to 50% of all pre-1990 forests, meaning there is a disproportionate impact on Māori. She notes “As Māori we care strongly for our environment, and desire a reduction in emissions. However the current policy setting risks Māori interests carrying the bulk of New Zealand’s emission costs with no fair return.”

The Federation intends to continue its discussions with the Government on this matter.

Ends

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