Isra-Mart srl: Balancing people's needs with environment

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The stark reminder of world catastrophes induced by massive shifts in the earth plates and climate put care of our environment at the top of our minds. Christchurch is becoming almost too hard to comprehend and we wonder how we can help those now overwhelmed by more than 6000 shakes. That and the tornado in New Plymouth should not be linked but the "what next?" scenario is on everyone's minds.

I have organised an emergency kit in case of an earthquake here and I do sleep a little easier knowing I can look after those around us in our neighbourhood if we are ever hit.

My thanks to all who gave their time to help out in Christchurch, they are heroes. I attended the mayoral fundraising concert held in Rotorua a week ago. It was emotional listening to those who shared their creative talent at no cost to help out with the rebuild costs. They are also our stars.

I sat next to a wonderful woman at the concert and we got chatting. She reckoned she was considering voting Green because that was the party that cared uppermost about the environment. While it's not the place to be debating politics, she did get me thinking about Labour's legacy on valuing the environment, while also caring for the most vulnerable and those who create wealth through exports.

These are difficult balances for any party in government.

It was Labour who voted for the emissions trading scheme (ETS) and this is the centrepiece of environmental protection that drives all decisions around how we price carbon, manage waste, drive clean technology and reduce our greenhouse gas emissions.

New Zealand will be liable for increases in our emissions above those of 1990 levels for the period covered by the protocol from 2008-2012. These are now naturally above what we emitted in 1990 due to growth in transport and agriculture emissions. Our net emissions are within 1990 targets because the carbon absorbed by our trees planted since 1990 exceeds the increase in our gross emissions. Most sectors of the economy are already in the ETS, for example forestry, transport, electricity generation and industrial processes.

Agriculture was due to come into the market on January, 2013, under Labour. National bowed to political lobbying and put that date out to 2015. Currently, due to good prices for dairy, agricultural emissions are increasing. The cost of that increase since 1990 levels is a cost to the New Zealand economy between 2008 to 2012, but not to the agriculture sector.

We are not clawing that back but are including agriculture from 2013. We are asking them to pay for their extra emissions. They will still be receiving free emission rights for all their 1990 agriculture emissions. Agriculture will receive a free allocation equivalent to 90 per cent of their 2005 emissions. The total predicted cost over the five years is projected to be $800 million.

The price of milk and cheese is set by the international market price and it will not change. It is good to see the Commerce Commission exercise its mind about whether we are paying a fair price for the milk that we consume at home. It is pretty damning when soon we could be paying less for a bottle of wine than two litres of milk!

Labour's announcement of the re-introduction of the research and development tax credit when back in government will stimulate more research into carbon and nitrogen reduction. This will cost $30 million in the first year, rising to $200 million by year five. These costs are net of the savings from cancelling National's current grant-based initiatives.

That amounts to an $800 million investment over five years which will be paid for by the savings from ensuring agriculture pays for its fair share of greenhouse emissions. This policy has been well received by the science and clean technology sectors and is expected to increase research and innovation.

The policy is fully costed. It is also heartening to see the farming community in this region looking at changes in their farming practice.

Labour does care about the environment and we have not gone soft on our stance on this in the coming election.

Good government is all about how balanced decisions are made.

Strong decisive leadership is required to make these tough decisions and New Zealand is the envy of Australia, as shown by Australian Prime Minister Julia Gillard's support for a transtasman carbon market announced last week.