Charles Chauvel
Climate Change Spokesperson

22 November 2009 Media Statement
Deal adds Billions to cost of ETS

National's ETS will cost kiwi taxpayers billions more in new subsidies to corporate interests, once yesterday's deal with Ngai Tahu is factored in, says Labour's climate change spokesperson Charles Chauvel.

“Already, National's ETS is estimated to cost taxpayers an additional $110 billion to 2050. This additional cost comes from a phase out in subsidies to big corporate emitters that are more than six times more generous than under the existing scheme,” Charles Chauvel said.

“Now, new deals with corporate iwi interests must be added to the mix. The details of these deals remain unavailable. But given that they were outlined only yesterday by Ngai Tahu at its AGM, two days before the ETS legislation is due to return to Parliament, Treasury simply won't have had an opportunity to put a cost on them.

“Ngai Tahu says the new arrangements - including rights to plant on crown land - will come at a cost to taxpayers of $50 million per year.

“This sounds like a very conservative estimate. But even if it is right, that adds another $2 billion to the cost of National's ETS amendment by 2050.

“In this key area of policy, National is sending an un-costed bill to future taxpayers.

“Billions of dollars are now being added to that bill, with no obvious benefit to individual Maori.

“National's ETS has become a monument to secret deal-making, at taxpayers' expense, designed to legislate permanent pollution payments to corporate’s - now including iwi corporates,” Charles Chauvel said.

ENDS

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