It seems consumers will bear the cost of the emissions
trading scheme while farmers and horticulturists fear their
businesses and New Zealand's key export industries could pay
the ultimate cost and be forced out of business.
But Agriculture Minister Jim Anderton has moved to ease the
sector's concerns, saying through a spokeswoman, that if
there was no greenhouse gas emission mitigating technology,
the sector would get additional time to adjust.
Parliament this week passed the Climate Change (Emissions
Trading and Renewable Preference) Bill which Climate Change
Minister David Parker hailed as helping reduce greenhouse gas
emissions and climate change.
However, it appears consumers will end up paying.
A BP spokeswoman said yesterday's international price of
carbon credits was $44 a tonne, which would increase the
price of petrol 12c a litre.
A Meridian Energy spokes-woman said the company believed the
ETS was the best way to change consumer behaviour, and she
said the company accepted Government predictions of its
impact on energy prices.
Those were: retail electricity price to rise 1c to 2c per
kWh, gas 0.9c to 1.7c per gJ and a 20kg bag coal of 90c to
$1.50.
Fonterra said the higher production costs would filter
through to higher consumer prices.
Meat and Wool New Zealand chairman Mike Petersen warned the
$5 billion sheep and beef industry could disappear.
Other than reducing productivity or the number of animals
carried, little mitigation technology was available.
Horticulture New Zealand president Andrew Fenton feared his
members could also go out of business.
