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Farmers won't be 'thrown to the wolves' - Key


The Government won't throw farmers to the wolves by forcing agriculture into the Emissions Trading Scheme (ETS) in 2015 without other countries doing the same, Prime Minister John Key says.

NZPA
Tue, 24 May 2011

The Government won't throw farmers to the wolves by forcing agriculture into the Emissions Trading Scheme (ETS) in 2015 without other countries doing the same, Prime Minister John Key says.

Agriculture's entry date, when farmers will start paying for their greenhouse gas emissions, is a hot topic because Labour's new policy is to bring them in two years earlier, in 2013, to fund research and development tax credits for businesses.

Mr Key gave a strong indication today that he didn't think the 2015 date would be enforced.

"We have said we will review the 2015 date and will only bring agriculture in if it's consistent with other countries," he said at his post-cabinet press conference.

"At this point we're not seeing a lot of movement from other countries.

"In fact, if New Zealand was to come in with agriculture in 2015 we would be the only country in the world doing that."

Mr Key said farmers had to be competitive internationally and putting "a big fat tax" on them would compromise their position.

He also said it was more difficult for farmers than it was for households or businesses to mitigate emissions.

"If you're going to put an ETS on them for the emission of methane and nitrate gases that come from the burping and farting of animals, when there is no other option, that's pretty tough on them," he said.

"The ETS is there to reduce emissions ... it's not easy for them to reduce their emissions short of shooting productive animals."

Mr Key said work was being done on nitrate inhibitors and farmers were effectively already paying ETS levies because they were big users of electricity, petrol and diesel.

"To argue they are not paying something towards emissions trading at the moment simply isn't correct," he said.

The Government has previously announced a review of the ETS and Mr Key said the report would be available around mid-July this year.

"So 2015 isn't guaranteed ... we're very conscious of the international competitiveness of our export sector and it (agriculture) is our largest export earner. We think our farmers should be competitive," he said.

"National doesn't see the ETS as a money-making device ... I don't think you can throw our biggest export earner to the wolves.

"If other countries are going to step up and do their bit, then New Zealand should do its bit, but not in isolation and certainly not in 2013."

NZPA
Tue, 24 May 2011
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Farmers won't be 'thrown to the wolves' - Key
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