Business NZ study doesn’t justify rushed scheme

19 June 2007

Business NZ study doesn’t justify rushed scheme

A number of large companies are concerned that their research is being used to justify unnecessary haste in setting up a carbon trading scheme.

Earlier this year the companies, led by Business NZ, funded a large research study into emissions trading in order to provide a fact-based submission to Government.

The research work noted the timeframes being used by other countries to develop carbon trading systems was between four and six years. This was because of the complexity involved and because of the risk of the system being ‘gamed’ if not properly set up.

But they say that Energy Minister David Parker appears to be using their research to justify the rushed introduction of an emissions trading scheme, with only 12 weeks’ development time.

Business NZ Chief Executive Phil O’Reilly says their research clearly recommends taking enough time to ensure the system can’t be gamed and won’t impose unnecessary costs on the taxpayer.

“It’s just not possible to design a robust system in 12 weeks,” Mr O’Reilly said.

“The European system, which is a more limited scheme than that planned for New Zealand, took several years to develop. The Australians have a timeframe of 4-5 years to develop theirs. Getting our system wrong could be very expensive for New Zealand taxpayers.

“Our research does not provide justification for rushing ahead with a half-baked, risky emissions system. It recommends quite the opposite.

“We are concerned that there is in fact no justification for this extreme haste and fear that we will as a result get a fatally flawed and over-expensive emissions trading system in New Zealand.”

ENDS

© Scoop Media