Business decision makers back emissions trading, only 2% support emissions support until 2030

Six out of 10 business people agree with the Government's policy to introduce an emissions trading scheme.

They believe in supporting emitters with emissions credits until their overseas competitors also face a price of carbon.

However, only 2% back the Government's new assistance policy, announced last week, which extends the phase-out of emission credits assistance from 2025 to 2030.

According to results of a ShapeNZ national online survey, conducted between 11.30 pm May 6 and 10am May 12, 2008, with 2404 respondents and 639 business decision makers (defined by occupation as managers, proprietors and self employed), policy makers will find little support for giving emitters an open cheque book or delaying the trading scheme.

The findings were presented this evening to the Finance and Expenditure Select committee, hearing submissions on the bill which proposes introducing and emission trading scheme, by the New Zealand Business Council for Sustainable Development.

The Business Council, whose 73 member companies' $44 billion in annual sales equate to more than 34% of gross domestic product in dollar terms, told MPs business people in general recognised large emitters needed assistance to protect them from overseas competitors until they too faced an emissions price.

"But they want that support given only for as long as necessary," Business Council Chief Executive Peter Neilson says.

"The survey represents the broad view of business, not that of heavy emitters who are genuinely concerned. But it tells the MPs they are on the right track on emissions trading. Action is needed now or urgently, they want to lead, they want to help heavy emitters make the transition to low-carbon, but they're not going to pay the bill for longer than necessary.

"If the television chef Gordon Ramsey is telling consumers not to buy produce out of season, Tesco supermarkets in the UK have already started putting carbon content labels on products, and France wants to tax food at the border from producers not paying an emissions price, then there is no free ride for New Zealand," Mr Neilson says.

The survey, weighted by age, gender, personal income, employment status and party vote 2005, has a maximum margin of error of plus or minus 2% on the national sample, and 3.9% on the decision maker sub sample.

Business decision makers think climate change is a problem to be dealt with now or urgently (77%, compared with all New Zealanders 77%), want New Zealand to be a global leader on climate change (47% /49%), agree there should be an emissions trading scheme (60% to 58%) and that large emitters should pay (71%/ 70%).

They also agree (69%) that emitters should be given extra emissions credits until overseas competitors face a price on carbon.

However, just 2% of business decision makes support the current emissions credit policy, giving emission credit support until 2030. Only 1% of all respondents agree.

One in five say no assistance should be given to large emitters, 43% support assistance until overseas competitors are paying, and 27% want assistance phased out before or by 2020. Only 2% want support to run until 2025, and 2% until 2030. There is nil support for assistance until 2050.

The report on the survey and other remarks and submissions prepared for delivery to the select committee at 6.35pm this evening are available at the Business Council's web site www.nzbcsd.org.nz