Maori Party rift widens over ETS

Cracks are appearing in the Maori Party over controversial climate change laws that will see taxpayers subsidise big polluters.

Changes passed into law yesterday to the former Labour government's emissions trading scheme have delayed the scheme by six months and shifted a greater share of the costs from big polluters on to the taxpayer.

The Government has halved projected power and petrol price rises under Labour's scheme. It says loading too big a cost on business risks "snuffing out" a fragile economic recovery.

But the deal could come at a political cost for the Maori Party, with grassroots members questioning its support for the measures.

The party is already divided over MP Hone Harawira, who has been outspoken in his criticism of National's emissions trading scheme. He is on leave after falling foul of the party over recent outbursts.

Maori Party co-leader Pita Sharples refused yesterday to say whether Mr Harawira supported the party's stance on the scheme. "A lot of us don't support a lot of what's in it, but as a caucus, yep, we [are voting for it]."

Hori Parata, former chairman of Mr Harawira's Te Tai Tokerau electorate, said he doubted even half the Maori Party's ruling body supported the ETS deal with the Government.

There was widespread dissent in the party and the caucus leadership had failed to explain what it meant for grassroots members, he said.

Pakeha and Maori members were not happy. "There is a big majority that wouldn't haven't a clue.

"All they think is that one of the deals is the Treaty of Waitangi and another one was to get some cheap petrol and electricity for a couple of years."

Others within the party were critical of the lack of consultation. One source said the party leadership had never explained the emissions trading scheme to its members.

"Many supporters are threatening to leave the party, as the real issues behind this legislation are becoming known by the wider public.

"Our people are gutted that their opinion has not even been sought by the caucus, let alone listened to."

But Dr Sharples said a ploy by some disgruntled party members to derail the final vote was "mischief".

He was satisfied the leadership had the full support of the party's governing council.

The biggest winners from the changes are industry and farming, after their entry into the scheme was delayed and more Government assistance to meet Kyoto protocol obligations was provided. Some big iwi will also benefit under a last-minute deal done with the Maori Party, allowing iwi to "farm" for carbon credits on conservation land.

Labour leader Phil Goff yesterday accused the Government of doing a "quick and dirty deal" with the Maori Party that would lump taxpayers with a $110 billion bill for subsidising big polluters.

"National's ETS will load enormous costs on to future generations of taxpayers and is riddled with privileged deals for particular groups of polluters."

But Dr Smith said Labour's ETS would have meant a 10 per cent rise in power and petrol prices next year.

'Dr Sharples and Mrs Turia may have navigated the ETS and Harawira shoals safely so far, but heavy weather is still ahead.'

- By GRAHAME ARMSTRONG and TRACY WATKINS

- © Fairfax NZ News