The Government's options for passing its emissions trading legislation appear to have narrowed with the Maori Party describing it as "fundamentally flawed" and United Future confirming it will oppose it.
The Government is working behind the scenes to negotiate support for its Climate Change (Emissions Trading and Renewable Preference) Bill, which was reported back from a select committee yesterday with about 1000 mainly technical changes.
At present it has only 50 votes, meaning it needs the support of either New Zealand First as well as the Greens or the Maori Party.
Another possible combination is the two latter parties and independent MP Taito Phillip Field.
However, that appears increasingly unlikely with Maori Party co-leader Tariana Turia today attacking the bill which she said was "fundamentally flawed" and would deliver little for the environment.
The bill, as it stood, also gave some industries an easy ride while householders were left to pick up the bulk of the cost, she said.
"Costs fall almost entirely on families and taxpayers, while big businesses and industrial farmers who are generating greenhouse gases get off scot free for years to come."
The party was also unhappy that the fishing industry seemed to be unfairly excluded from the Government's carbon credit "lolly scramble".
Mrs Turia said where businesses were threatened they should be able to apply for relief, rather than industries receiving blanket exclusions.
A Maori Party spokesman said MPs were yet to discuss whether they would try to seek changes from the Government or whether they would straight out oppose the bill.
But United Future leader Peter Dunne confirmed today his party would vote against it.
His statement followed Climate Change Minister David Parker confirming the Government was considering a compensation scheme for householders that included both "efficiency and price support".
But Mr Dunne said the compensation packages being proposed would be heavily targeted towards the poor and elderly and would do little to reduce costs, which could rise by at least $30 a week for most households. "We think this is too great a cost for them to have to bear."
Mr Dunne said he had flagged concerns over costs to householders in December last year, yet had not been consulted on the issue of compensation.
"The fact that the Government has refused to do so leads to the conclusion that Labour is more interested in creating an ETS before the election and not in having a durable long-term system that most of the country can sign up to and can afford." National is opposed to the bill, which it says is being rushed and will put unnecessary costs of businesses and consumers.
National's deputy leader Bill English today questioned Mr Parker in Parliament over the size of the compensation scheme, suggesting it would be about $140 million.
Mr Parker would not be drawn on the size of a package.
