A Canterbury vegetable grower says greenhouse growers will face some tough times under the Emissions Trading Scheme (ETS), even with the availability of carbon credits.
The Government has announced that growers who produce fresh tomatoes, cucumbers, capsicum and cut roses in heated greenhouses are now eligible for the taxpayer-funded subsidies under the ETS.
The carbon credits are designed to compensate growers in the short-term for an increase in costs due to the scheme.
Chris Sinnott, who grows nearly a hectare of capsicums under glass using coal-fired burners in Waikuku, North Canterbury, says he's not sure how much the ETS will cost him, but he expects it will be significant.
He says the free carbon credits will not provide any relief, as they are based on production levels rather than fuel usage, and will also need to be traded.
Mr Sinnott says growers will not be able to increase vegetable prices to compensate for the ETS either.
Energy-saving incentive
Horticulture New Zealand says the ETS is supposed to encourage growers to switch to lower emitting fuel types.
Business manager Chris Ward says it's been suggested that growers who use coal should convert to wood chips or natural gas, but that is not commercially viable in some areas where there is no natural gas supply or wood chips are inconsistent in quality or quantity.
Mr Ward says the effect may instead be that tomatoes and other greenhouse crops will be grown further north, where it is warmer.
Mr Ward says growers who are eligible for the taxpayer-funded subsidies under the ETS need to apply before April next year.
