'Sticking points' stall ETS

The Government is still negotiating with the Maori Party over legislation setting up an emissions trading scheme and hopes to strike a deal by early next week.

If it succeeds, Parliament is likely to be put into urgency to pass the bill.

None of the other parties support the bill and Climate Change Minister Nick Smith needs the Maori Party's five votes to get it through.

It was known earlier this week that there were 10 "sticking points" that had to be resolved before the Maori Party would guarantee its support.

The Maori Party is representing iwi interests and is concerned about protection for iwi-owned forests under the scheme.

Documents obtained by NZPA show the iwi leaders group involved in the negotiations wants:

* Preferential treatment for being allowed to grow trees on Crown-owned land;

* Preferred status as joint venture partner for any state-owned enterprise forestry projects;

* A commitment to establish a forestry fund "and other incentives" for planting trees; and

* Agreement on a range of technical issues including "ongoing engagement in broader governmental work programmes" related to forestry.

The iwi leaders group supports the Maori Party in wanting a Treaty of Waitangi clause put into the bill and an extended home insulation scheme for poor families.

Labour was negotiating with the Government over the bill but the talks broke down after Dr Smith turned to the Maori Party for support.

Opposition parties say he put the Maori Party in a strong position to demand concessions through secret negotiations.

The ACT Party strongly opposes the way the Government is conducting the negotiations, saying they are based on racial preference.

The emissions trading scheme (ETS) is a modified version of the one passed by the previous government just before last year's election.

National put it on hold, reviewed it and produced a modified version which is easier on big polluters and won't cause energy and petrol prices to rise as much as they would under the existing ETS.

The ETS will eventually bring all sectors of the economy under a regime designed to reduce greenhouse gas emissions through a carbon trading scheme.

- AAP