14 May 2010

Hundreds of firms apply for ETS scheme

9:19 pm on 14 May 2010

The number of companies applying for taxpayer-funded subsidies under the emissions trading scheme has reached 800.

The Government's allocation of free carbon credits for industrial processors is set to be ready by 1 July.

Under Labour's scheme 22 companies were eligible, but the National-led Government says its scheme has widened the net of companies able to get subsidies to make it fairer for small and medium-sized businesses.

It says small and medium companies that are intensive emitters will get protection to maintain their international trading position.

Climate Change Issues Minister Nick Smith says under the previous Labour Government's scheme those businesses were discriminated against.

Labour's climate change and energy spokesperson Charles Chauvel says an intensity-based scheme is unaffordable and will place a massive burden on taxpayers.

Growers who produce crops under cover make up most of the new applications for the taxpayer funded subsidies.

Horticulture New Zealand's business manager Chris Ward says the industry body lobbied the Government to recognise these growers in its emissions trading scheme.

Mr Ward says Horticulture New Zealand is meeting with growers to see who is eligible for free carbon credits.