The Employers and Manufacturers Association today joined a growing list of business lobby groups pressuring the government to delay the Emissions Trading Scheme.
EMA chief executive Alasdair Thompson wants the government to align the entry of industries
The Employers and Manufacturers Association today joined a growing list of business lobby groups pressuring the government to delay the Emissions Trading Scheme.
EMA chief executive Alasdair Thompson wants the government to align the entry of industries into the ETS with their trading partners.
"Our financial situation is far too fragile to absorb the extra $255 million the government calculates the ETS will cost all of us."
He said the costs will come in addition to GST and ACC levy changes - cutting into take-home pay.
Climate Change Minister Nick Smith finally fronted up on the Emissions Trading Scheme today, defending the government's plans to introduce the transport, electricity and industrial industries to the scheme on July 1.
The National Business Review print edition reported two weeks ago the government was under increasing pressure to delay the scheme.
Nine business lobby groups sent a letter to Prime Minister John Key in early March asking whether New Zealand's ETS remained appropriate.
As NBR understands, concerns included:
The letter was also sent to Bill English, Gerry Brownlee, Nick Smith, David Carter, Tim Groser and Rodney Hide.
After almost a week of dodging questions, Mr Key responded last Thursday through a spokeswoman to say suspending the scheme was not in the country's best interests.
Mr Smith told Radio New Zealand today the introduction in July was a "half-step" and would go ahead as planned.
It was only a 50 percent obligation starting on July 1 and there was a carbon price cap, so the cost was "not excessive to businesses", he said.
"We think we've got the balance pretty right but we do need to keep flexible."
The government would look at international progress in Australia, the US, Japan and Europe next year, when ETS legislation allows for a formal review.
He said if there was no progress, the government would be unlikely to proceed with the step-up in obligations from January 2013.
An average New Zealand family could expect an $165 annual increase in expenses from July, he said.
Mr Thompson said it was "disingenuous" for Mr Smith to say on radio the EU had an ETS in place as it covers 4% of output, compared to New Zealand's, which covers 100%.
"If the ETS proceeds on July 1 we fail to see how the government can expect the ongoing tacit support of the business community."
Business groups lobbying the government include:
