4 March 2014

The government's tinkering around the edges will do nothing to address the crisis in the carbon forestry sector, says Labour's Climate Change spokesperson Moana Mackey.

"The announcement that buyers and sellers of carbon units will be able to see how and where the unit was generated will have a minimal impact, if any, on the New Zealand carbon price.

"While transparency is all very well and good, Ministers Groser and Goodhew know that it is the collapsed carbon price due to an unrestricted flow of international units which has devastated our carbon forestry sector, not a lack of knowledge about how those units are generated.

"Minister Groser promised to do something about the unrestricted importation of cheap international units in a speech to the Climate Change Iwi Leaders Group in 2012. Since then he has sat on his hands as the carbon price has collapsed, undermining the value of treaty settlements and stymying replanting and investment in new forestry development.

"The Government's claims that they do not want to do anything that would increase the price of carbon for "struggling businesses and households" rings hollow given they have also refused to do anything to ensure that price-gouging is not taking place and that consumers are not being charged carbon prices well in excess of the current NZU price of around $3.

"Today's announcement makes it clear yet again that National will not take the necessary steps to protect our carbon forestry sector," says Moana Mackey.

Source: NZ Labour Party media release