Dunne's decision on ETS critical

United Future Leader, Peter Dunne, needs to meet with representatives from the forestry sector before the committee stages of the Climate Change Response (Emissions Trading and Other Matters) Amendment Bill, says Labour Climate Change spokesperson Moana Mackey.

“With the Government’s paper-thin majority, Peter Dunne’s vote could determine the future of this sector.

“Jobs are on the line. I am urging Mr Dunne to consult interests other than those of the National Party on this issue.

“I understand he has pledged his vote to Climate Change Issues Minister, Tim Groser. But I believe he can keep faith with his party’s policy by voting for the Government’s ETS Amendment Bill whilst also supporting my amendment to restrict international units.

“The amendment is a lifeline for the carbon forestry industry in New Zealand. It is not out of step with his party’s position, nor does it bring him into conflict with any undertakings he has given under confidence and supply.

"I fully accept that United Future had a policy at the last election to slow down the implementation of the ETS, but I don't believe it intended to do so at the expense of the forestry sector.

“The proper implementation of the ETS is critical if New Zealand is to have any hope of meeting our greenhouse gas reduction targets. And while the off-setting provisions were also part of United Future’s policy, they are irrelevant if pre-1990 foresters are not even considering off-setting because they are simply going to take the second tranche of compensation, deforest at low liability due to the collapsed carbon price, and effectively exit the ETS altogether.

"As with all political parties United Future made their policy before the complete collapse in the carbon price. Things have changed and the situation is now urgent. Last night the price of UN offsets eligible without restriction in the New Zealand ETS dropped to around NZ$1 – so NZ50c with the Government’s two for one subsidy.

“Mr Dunne’s vote is crucial. He needs to give forestry representatives the respect they deserve and hear from them first-hand what a failure to act will mean for their sector,” Moana Mackey said.