Tue, 01 Sep 2009 12:00a.m.
Prime Minister John Key says a meeting between himself and Labour leader Phil Goff is likely
By Sia Aston
It is looking increasingly like a grand coalition between Labour and National will be the answer to finding agreement on what to do about climate change.
In a sign the issue is gaining political momentum, talks over an amended Emissions Trading Scheme look set to be elevated to the top office in the Beehive.
The real political storm over climate change lies just beneath the surface with frantic negotiations going nowhere.
But there are signs of a potential break in the weather with a grand coalition between National and Labour.
Prime Minister John Key says a meeting between himself and Labour leader Phil Goff is likely.
“I think the impression I’ve had from Labour is that they are negotiating in good faith,” says Mr Key.
“I don’t think they are playing games here, they have some points they believe are important.”
Mr Goff says his party is ready to work with the Government.
“We want to retain the integrity of the scheme, but we are prepared to negotiate with Mr Key.”
National reopened the debate by reviewing Labour’s Emissions Trading Scheme.
It wants a less punitive scheme for polluting businesses, giving farmers more time before they legally have to reduce emissions.
The minor parties are at odds with National and Mr Key knows a previously unlikely deal with Labour may now be its best option.
“There will have to be some give and take on both sides – we acknowledge that.”
Agreement between the two major parties would give the legislation credibility and durability.
“That’s the potential advantage – that it is more settled,” says Mr Key.
An Emissions Trading Scheme will see businesses pass on the costs to consumers over time.
It will mean higher power bills, and more expensive groceries.
This is a real challenge for Mr Key. While Labour’s support will give National’s legislation credibility, allowing the opposition to share the credit with the Government is not an attractive option – and one Mr Key will want to carefully manage.
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