Emissions law reignites strife among Govt allies

Nick Smith, Climate Change Minister. Photo / Mark Mitchell

Debate over the Emissions Trading Scheme has reawakened the friction between the Government's support parties after Act leader Rodney Hide accused National of "selling its voters out" in its deal with the Maori Party.

MPs began vigorous debate about National's changes to the scheme yesterday after the Government cut a deal with the Maori Party to get the numbers to pass it.

In Parliament, Mr Hide criticised National, saying it was "selling its voters and supporters out" by agreeing to a Treaty of Waitangi clause in the legislation after previously campaigning to remove them and claiming they were meaningless.

Maori Party MP Rahui Katene returned the swipe, beginning her speech by noting it was a joy to work with a party "not tied down in Hide-bound ideas".

She also hit at Labour leader Phil Goff's accusations that the forestry deal with five iwi benefited only the "Maori elite" rather than "ordinary Maori". She said the iwi organisations charged with settlement assets had responsibility for Maori households in their iwi, and what benefited the iwi also benefited whanau.

She defended her party's decision to reverse its initial opposition to emissions trading schemes, saying it had pushed hard for changes to help its people.

The two parties had also butted heads over the Auckland Council Maori seats, after Mr Hide told Prime Minister John Key he would resign rather than put the seats in place.

With only the Maori Party and United Future's Peter Dunne on his side, Climate Change Minister Nick Smith faced a barrage of criticism from all directions.

The legislation is being passed under urgency and Labour and the Greens have tabled numerous amendments to delay it.

Dr Smith acknowledged the use of urgency was not ideal, but said it was necessary to ensure the law was in place by January 1, when the existing scheme was due to kick in and load extra petrol and power costs onto households.

He said the controversy was expected. "In the US Congress, there is vigorous debate about putting in place an emissions trading scheme. It is the same in Australia. In every one of those countries, it has been fractious, divisive and hotly debated. That is proper. This is probably the most significant change in reform of a financial nature since the introduction of GST."

However, he believed the result was workable and hit the right balance.

"In broad terms, this bill is about New Zealand doing its fair share, rather than a position that somehow had New Zealand way out ahead of any other country."

Green co-leader Russel Norman and Labour's Charles Chauvel both said the bill would do little or nothing to reduce emissions. Dr Norman said future generations would "scratch their heads in wonder" at such an abysmal scheme.

Mr Chauvel said Labour would now repeal the law once it regained the Government benches, claiming Labour had tried to get a bipartisan solution.

He reserved his strongest criticism for Dr Smith, saying the bill was rushed and the select committee was starved of important analysis.

"It will make us poorer, our economy weaker and our emissions increase and the tragedy is that none of this needed to happen. We could instead have achieved something enduring through good-faith discussions, but that is not something this minister is capable of."