Many of NZ’s biggest businesses feel the National Party has abdicated its responsibility to ask the hard questions about the Govt’s climate change policies, particularly emissions trading.

While the Govt is talking tough against business groups which are challenging the Emissions Trading Scheme, National is making barely a squeak on the issue and appears unwilling to embrace the concerns of business interests.

Greenhouse Policy Coalition Executive Director Catherine Beard stresses the potential impact on NZ’s economy if the Govt gets it wrong on emissions trading is so serious, there needs to be some robust debate.

One would expect the Opposition to be asking tough questions, but National has decided to “keep its head below the parapet” and is trying to portray itself as greener than Labour. While this might make sense from a political viewpoint, it means there is no one in Parliament now looking seriously at the impact of emissions trading on NZ’s economy.

Beard adds if the Emissions Trading Scheme proves to be flawed, as the recent Castalia report suggests, the next Govt will have to fix the problem, and that may well be National.

The Greenhouse Policy Coalition last week released new figures showing the Emissions Trading Scheme as it currently stands will result in significant job losses and virtually halt new investment in some key sectors.

The group has surveyed 41 firms across a wide range of industries including meat companies, pulp and paper mills, iron, steel, shipping, cement, mining, dairy, horticulture, fishing and supermarkets.

At a carbon price of $30/tonne these firms will collectively face increased costs of $257m per year in direct energy costs, which does not include secondary price increases their suppliers will be passing on.

In addition about $1.6bn of planned new investment is likely to be scrapped as a direct result of emissions trading.

The survey shows the scheme will put about 3000 existing jobs at risk and about 700 new jobs. Greenhouse Policy Coalition Executive Director Catherine Beard expects most of the cancelled investment in NZ will be redirected to other countries that have less stringent climate change policies.

She says a carbon price of $30/tonne CO2 was chosen for the survey because that is what it would cost firms at today’s carbon prices, and the survey presumed no free allocation of allowances.

Only 14 of the 41 companies surveyed would be allocated partial protection via free allowances under the Govt’s current proposals. Beard says the climate change policies of Aust’s new Labor Govt appear much more friendly towards big business than those proposed in NZ.

In particular, Kevin Rudd has indicated his Govt will be generous to businesses whose international competitiveness is threatened by climate change policies.

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