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Climate Change Minister David Parker fronted up to a business audience yesterday to defend his Government's emissions trading scheme, which has been attacked as unworkable and rushed by many in the sector.
Mr Parker appeared at Business New Zealand's election conference in Wellington with political friends and foes to discuss energy, infrastructure and climate change policy.
After listening to National's Gerry Brownlee criticise Labour's record on energy and infrastructure and express concerns about the current Government's emissions trading scheme, a riled Mr Parker mounted a strong defence.
Asked if there should be further protection for at-risk businesses than was currently proposed, Mr Parker said if there was much more help then the scheme simply wouldn't work.
"The idea that we can have an emissions trading scheme while we have no marginal price signal might be attractive to major emitters because they don't get any bill," Mr Parker said. "But you don't avoid the bill as a country, that arises under Kyoto. All you do is you take it off the emitter to the taxpayer."
Business New Zealand has been critical of the emissions trading scheme, saying last month it needed a major rework and the public should be able to have another say through another round of consultation. One of the big concerns within the business community is that the scheme needs to be better aligned with Australia's.
Last month Australian Prime Minister Kevin Rudd said he had been told by officials that the two schemes could be linked together in the future. At the moment, however, the focus in both countries was on getting their own backyards sorted out first.
Labour is set to pass the flagship part of its climate change push into law next week, with the support of New Zealand First and the Greens.
The trio reached an agreement on changes to the original legislation after months of intense negotiation, but those changes were only tabled in Parliament hours before the debate began on the next stage of the bill.
National has criticised the lack of time given to examine the amendments to the bill, although it has been given extra days now to look at them while Parliament considers other legislation under urgency.
Mr Parker's view that trade-exposed businesses were already being protected enough under the scheme was backed by Greens co-leader Jeanette Fitzsimons at the event.
But Act leader Rodney Hide called for the scheme to be scrapped entirely, while United Future leader Peter Dunne suggested it was being rushed through on the eve of an election for political reasons.
