Maori Party ETS deal put under microscope

The deal struck over the emissions trading scheme is coming under scrutiny after National disputed for a second day one of the supposed gains by the Maori Party.

What is becoming clear is that the most important concessions won by National will be in the legislation to be introduced next week.

But much of the deal on the Maori Party side of the bargain is an agreement in principle with the more detailed negotiations to follow, such as how to deal with the forestry element of the Ngai Tahu settlement,

The deal was subject to questions in Parliament yesterday by Labour and Act.

Labour was concerned at reports that a housing insulation deal had been reached for 2000 extra Maori households in an extension to the $323 million home insulation 2009 Budget initiative.

The general scheme gives subsidies for home insulation and free insulation for home-owners on the community services card.

Maori Party co-leader Pita Sharples said on Wednesday the party had won 2000 "extra houses".

Asked if they would be free, he had said: "Yes for at least 2000, yes these are particularly Maori probably 500 North, 500 over the East Coast and 1000 spread across different areas."

But Energy Minister Gerry Brownlee said media reports that the Maori Party had gained free home insulation to 2000 Maori households was a "very loose and somewhat interpretive recycle" of what Dr Sharples had said.

Mr Brownlee said National was discussing the matter with him.

"In any event, well over 2000 Maori households will be advantaged by this scheme over its lifetime."

MP Chris Hipkins said the so-called "wins" for the Maori Party were as "clear as mud" and negotiations must be "shambolic".

Dr Sharples admitted he had been mistaken in saying the party was negotiating a rise in social welfare benefits.

He had in fact been told that the increased petrol and energy costs would increase the consumer price index on which benefit increases are based.

Climate Change Issues Minister Nick Smith told Parliament that the Maori Party had not asked for any different rules for Maori than for other New Zealanders.

But it was concerned that Maori not bear a disproportionate chard of costs for reducing emissions because of their concentration of economic interest in primary industry and in low-income households.

Dr Smith said of the deal between the two parties, that the $25 per tonne of carbon fixed price option would be in the legislation next week. So would the 50 per cent obligation - requiring big emitters to have only one emission unit for every two tonnes of liable emissions.

Both are big-ticket items for National as is the two-year delay for the entry of farming into the scheme, which will also need to be in the legislation.