Our 2011 election manifesto - Labour Party

Labour is committed to achieving a lasting consensus among New Zealand‟s main political
parties on an ETS. We have consistently tried to work with the National Party to reach
common ground. But we aren‟t prepared to compromise our fundamental principles to do so.
Labour will seek to link with trading partners, notably Australia, which are committing to
responsible long-term reductions in carbon emissions. And we will get advice from periodic
independent reviews provided for in the ETS legislation.
National amended Labour‟s 2008 ETS, increasing the taxpayers‟ bill for New Zealand‟s
greenhouse gas emissions by an estimated $50-110 billion (to 2050) and letting polluters off
the hook at the cost of taxpayers. These amendments included putting a price cap on
carbon, halving the amount of emissions units that must be bought or surrendered, and
deferring the inclusion of agriculture to 2015.
Most of the „free‟ allocation of emission units would go to agriculture, with its emissions being
subsidised by other sectors of the economy and by taxpayers. Even then, National is
equivocating on the essential inclusion of agriculture despite it being the country‟s largest
greenhouse gas emitter (47% of the total).
Labour is committed to bringing agriculture into the ETS on 1 January 2013. The initial „free‟
allocation to agriculture will be 90% of the sector‟s 2005 emissions.
Labour will ensure the effective implementation of the ETS, and strengthen it by
bringing agriculture in on 1 January 2013.
Labour will base the amount of „free‟ emissions units allocated to agriculture on 90
per cent of its 2005 emissions.
A recently-released review panel report recommended a number of changes for sectors
already in the ETS (i.e. energy, forestry, industry, transport). Labour is considering this
report.
Importance of agriculture
Labour's originally legislated date for inclusion of agriculture under the ETS was 1 January
2013. National pushed that date out to 1 January 2015 with a much longer phase-in period
(and further deferral looking very likely). This leaves every New Zealand household having to
pay for transport and electricity emissions, but leaves farming exempt from paying for its
agricultural emissions.
Having agriculture in the ETS, and paying its fair share, is essential for the integrity of the
scheme. The agriculture exemption (and extended phase-in) is unfair, a disincentive to
reduce emissions, and economically distorting. It also discourages productivity
improvements and innovation.
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