Govt simplifies carbon tax exemptions

The Government is moving to simplify and speed up the process by which larger emitters of greenhouse gases can negotiate an exemption from the carbon tax due to come into effect in 2007.

Concern has been mounting that the process is too slow and unwieldy. Only two agreements, with the New Zealand Refining Company and gold miner OceanaGold, have been completed.

Firms whose international competitiveness would be at risk if they faced a carbon tax on their emissions of gases blamed for global warming, and by the carbon tax impact on electricity and transport fuel prices, can seek a negotiated greenhouse agreement.

It would exempt them from the tax in return for their moving to world's best practice in emissions for comparable operations. Climate Change Minister Pete Hodgson said the process for streamlining world's best practice would be improved, as would the setting of a pathway against which progress towards attaining best practice was measured.

The Herald understands that this means less information will be required from companies.

Auckland firms will be briefed at a meeting on April 29. The Government is negotiating with Carter Holt Harvey, Fletcher Building, Norske Skog and Comalco among others.