KEY POINTS:
The Government put its flagship climate change legislation at the top of Parliament's agenda yesterday after gaining support for it from the Greens and New Zealand First.
The 258-page Climate Change (Emissions Trading and Renewable Preference) Bill has to pass its second reading, committee and third reading stages before becoming law.
With the support of the minor parties, announced yesterday, the Government has a safe majority for it and there is nothing to stop it being enacted before the election.
The legislation sets up the emissions trading scheme which will eventually control greenhouse gas emissions from all sectors of the economy.
Those that exceed their limits will have to buy credits from those that are beneath their caps. Electricity will come under the regime in 2010, transport in 2011 and agriculture in 2013.
Through their negotiations, the Greens secured a $1 billion allocation for home insulation retrofitting.
NZ First gained a one-off rebate on power bills in 2010 and cash payments for people on low incomes, pensioners and those receiving Working for Families tax credits to help them with their power bills.
When electricity comes under the scheme, power prices are forecast to increase.
Yesterday, National Party environment spokesman Nick Smith sought assurances that the Government would budget for the $1 billion fund and the other measures that will cost it money.
"Are we seeing a return to 1990 when the outgoing Labour Government made a whole lot of financial commitments without budgetary provision?" he asked.
Climate Change Minister David Parker said normal appropriation processes would be followed, and there would be a reference in the legislation to the insulation fund.
Dr Smith also wanted to know how much households would get through the rebate and cash payment schemes.
Mr Parker said the payments were expected to equal the cost of the increase in the cost of electricity during the first year.
National opposes the bill and will fight it through its remaining stages in Parliament.
It says the trading scheme is rushed, badly thought through legislation that carries unacceptably high economic costs.
Most business organisations agree with National, and made numerous appeals for the legislation to be delayed.
National says it will change it if it wins the election.
- NZPA
