Post Cabinet Commentary - Climate Change
The Greens have raised warning signals about New Zealand's trade position and overall credibility should National back away from commitments New Zealand made on agricultural emissions.
National's response has been the pragmatic one; environmental responsibilities need to be balanced against economic opportunities. The Government will argue that New Zealand, where the bulk of greenhouse gas emissions come from agriculture, has a different emissions profile to other countries. Prime Minister John Key said at this week's press conference that New Zealand is still committed to playing its part on climate change. In a departure from the optimism shown by former Environment Minister David Parker, Key told reporters that New Zealand had to recognise that agricultural emissions did not have technological solutions. Simply cutting production could have unintended consequences. At the same time, he reiterated his commitment to a reduction in Greenhouse emissions by 50% by 2050.
Key affirmed National belief that human induced climate change was occurring and we needed to act to stop it. He stated that National wanted an ETS that would work and balance environmental responsibilities with economic opportunities. Key said he didn’t believe the current ETS achieved that balance and he intended to deliver a record that showed improvement in emissions, not rapid deterioration, as had been the case under Labour.
On the subject of the forestry sector and its concerns about the possible disruption to the arrangements agreed under the last administration, the Prime Minister said the sector wouldn’t have had a market until 2010 when the “buy” side of the market came in. He said that he was sympathetic to any sector that wanted predictability and confidence on climate change and affirmed that the goal was to provide predictability and transparency as quickly as possible.
A statement on the Government's intentions concerning ETS legislation will be made shortly. However, Key's comments suggest that deferral may not be necessary and that a review of the terms of the emissions trading scheme will proceed without the contention that would accompany amending legislation.
US Double Tax Arrangement
The Cabinet approved a paper in relation to a New Zealand/United States double tax agreement. The agreement is intended to improve the tax relationship between the two countries by reducing withholding tax on interest, dividends and royalties.
Expert Panel on Electoral Administration Disbanded
The Government this week disestablished the Expert Panel on Electoral Administration set up by the Labour Government only two months ago.
The three review panel members were Associate Professor Andrew Geddis (Chair) of Otago University, Dr Jean Drage of Canterbury University/Victoria University, and Professor Stephen Levine of Victoria University. The reviewers had been given the task of considering the administration of the electoral system under the Electoral Finance Act and the desirability of state funding of political parties - an express preference of former Prime Minister Helen Clark.
Among the review panel's terms of reference was a requirement to convene a Citizens' Forum of 70 people to consider the findings of the panel. The cost of the exercise had been budgeted at $4.57 million.
Announcing the decision, Justice Minister Simon Power said “The Electoral Finance Act 2007 was passed without a broad base of support across parties represented in Parliament. Similarly, the Expert Panel was established without wider political consultation. National opposed both of these measures. So we are disbanding the panel and will start this whole process afresh".
Power has indicated that the Government will repeal the EFA as an interim measure. “Following the repeal of the EFA, we will start work on a new law that will seek as broad a range of parliamentary and public support as possible, to provide an enduring framework for the administration of elections,” he said.
New Crown Research Institute formed
Two former Crown Research Institutes - Crop & Food Research and HortResearch - have been brought together as the New Zealand Institute for Plant and Food Research Ltd (Plant and Food Research). The new agency will continue its predecessors' focus on sustainable production, elite genetics and food and health, but under one roof.
Jim McLean, the outgoing Chair of HortResearch, has been appointed as Chair of the new Plant and Food Research Board.
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