Tag: NZ

Nick Smith fails the smelter spin test

What does The Hon Dr Nick Smith, Minister for Climate Change Issues, say when the Greens accuse him of subsidising greenhouse gas polluters. Well it seems he denies it and he produces instructive soundbites of spin. I am informed that at Wellington’s Oxfam election and climate change debate he said that the NZ Aluminium Smelter Ltd’s operation at Tiwai Point is the only aluminium smelter in the world exposed to a carbon price.

He has used this soundbite a few times. For example, in Parliament on 29 September 2011:

“..the aluminium smelter in Bluff is the only aluminium smelter in the world to face any price at all for its greenhouse gas emissions”.

TV One’s ‘Q and A’ programme:

“the New Zealand Aluminium Smelter in Bluff, it is the only one in the world that pays any face at all for carbon pricing” ((NB By ‘pay any face’ I think he means ‘face any price’))

Parliament on September 2009:

“…the Bluff smelter, on 1 July next year, will be the very first to face a carbon price for its pollution. The European scheme excludes aluminium smelters until 2013…”

Does Nick’s soundbite stand up to scrutiny? Not very well…

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120% Pure Subsidy: Part 2

I have had some very good comments on my recent post, 120% Pure Subsidy, about the quantity of free emissions units that NZ Aluminium Smelters Limited (NZAS) has received under the NZ ETS in 2010. Enough good comments that they justify a second post on the subject.

Simon Terry of the Sustainability Council points out that we shouldn’t be surprised at the high level of free allocation of units to big emitters. Simon Terry documented this in June 2008, in the report Corporate Welfare Under the ETS, which looked at free allocation of units to eight energy intensive companies under the proposed NZ ETS.

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Water, water everywhere…

New Zealand’s response to the water crisis in Tuvalu and Tokelau is making headlines. Foreign Minister McCully announced yesterday:

Tuvalu has declared a state of emergency relating to water shortages in the capital, Funafuti, and a number of outer islands. A New Zealand Defence Force C-130 left this morning to take supplies and personnel to Tuvalu. The supplies include two desalination units as well as water containers. Two Ministry of Foreign Affairs staff on board, including our Wellington-based High Commissioner, will remain in Tuvalu to help assess needs on the ground. New Zealand will be working with partners and other donors to consider the best medium-to-long-term response options.

Tuvalu, with 11,000 inhabitants, is not the only island nation in trouble. Tokelau, with 1400 inhabitants, has declared a state of emergency because fresh water supplies might run out in a few days. Samoa is rationing water also.

There appears to be a reasonable probability that there is a causal link between the drought and water scarcity affecting the islands and climate change.

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The blind leading…

Evidence this week that the New Zealand Energy Strategy, trumpeted by the government as a key to the country’s prosperity, is making good on its promise to advance oil and gas exploration.  The NZ Herald carried a report of a meeting on Monday of high-powered global oil and gas exploration companies hosted by New Zealand Petroleum and Minerals, a division of the Ministry of Economic Development. It’s described as push to encourage new interest in the country’s under-explored frontier basins.

It was no doubt a decorous occasion, attended by representatives of prestigious exploration companies, some of them state-owned. Duncan Clarke, of Global Pacific & Partners, is the strategic consultant engaged to facilitate the discussion of a new competitive bid round process for allocating exploration rights. He says the government is “very open”. It’s asking the companies “what do we have to do to get you here”?

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Stating the pleading obvious (big dairy and the ETS review)

A commenter or two has started to hit back at the NZ Emissions Trading Scheme Review 2011 and the New Zealand Herald editorial Farmers must share burden on emissions for saying that there should be no further delay of the 2015 date when agricultural emissions will enter the New Zealand Emissions Trading Scheme (NZ ETS). The Herald editorial had the temerity to comment on the government’s “extraordinary generosity to farmers” in changing the “modest impositions” of the NZ ETS on agriculture so that it “will become truly timorous”.

David Anderson, who is described as a former editor of Rural News and a communications consultant in “teh” (sic) agribusiness sector, has just had an opinion piece in the Herald (27 September) arguing for further delaying agriculture’s entry into the NZ ETS.

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