Solid Energy contribution to NZIER ETS report

12 January 2009

Solid Energy contribution to NZIER ETS report

Solid Energy was asked by the New Zealand Institute of Economic Research (NZIER), in early 2008, to contribute towards the production costs of the Institute’s report analysing the economic impacts of the proposed New Zealand Emissions Trading Scheme (ETS).

Along with a number of other organisations, Solid Energy agreed to make a contribution as NZIER’s economic modelling around the potential impact of the ETS on the economy as this was helpful in formulating the company’s thinking and in putting together its submission to the parliamentary select committee considering the ETS legislation. Solid Energy contributed approximately $214,000 to the $1.3 million cost of research carried out on this report and closely related projects NZIER has carried out over recent years on emissions trading.

The report, and the opinions expressed in it, are entirely NZIER’s.

Solid Energy says it bases its work on good sound analysis and often seeks the assistance of external companies where it does not have in-house expertise. The company regularly contributes to or funds research on a wide variety of subjects by external experts eg. CRL Energy, Castalia, Concept Consulting and others.

Solid Energy has a long association with NZIER. The company contributed through industry groups to its analysis of the economic effects of GHG emission policies in 2001 and 2002; in 2004 NZIER (with Concept Consulting) contributed to our Energy Options report about New Zealand’s energy market.

The following is Solid Energy’s response to an Official Information Act request from the Dominion Post about its funding for the NZIER report which the company released to the newspaper on 18 December 2008:

“Solid Energy has spent approximately $240,000 (excluding GST) on research conducted by New Zealand Institute of Economic Research (“NZIER”) over the last three years. This amount was spent in relation to two separate projects undertaken in 2008.

The majority of this amount was spent was in relation to Solid Energy’s contribution to NZIER’s report on the impact of the proposed Emissions Trading Scheme on New Zealand’s economy.

For your information we enclose a copy of Solid Energy’s Briefing Note to our Shareholding Minister which sets out the background and gives details of Solid Energy’s contribution. You will note from the briefing note that Solid Energy’s monetary contribution was approximately $140,000. A further sum of approximately $74,000 was subsequently allocated to this matter.

Solid Energy spent approximately $24,000 on the second research project undertaken by NZIER.”

ENDS

Attached: Memo_to_SHMs_on_SENZ_funding_for_NZIER_200807.doc

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