We start paying for the Emissions Trading Scheme from today.

Power prices are already on the rise and fuel prices are set to increase as transport fuels and industry enter the scheme today. Increased ACC levies also come into play today.

Labour deputy leader Annette King says as of today, a large number of New Zealanders will see a big chunk of their income stripped away from them by the Government. She says it is instalment number one of Dr Key’s medicine for New Zealand and she believes it is going to have a very nasty taste.

However, the Government is hitting back at the criticism. Climate Change Minister Nick Smith says the price rises are only half what they would have been had the ETS of the previous Labour Government not been changed. He says that is why he believes opposition protests about the price rises from the ETS lack credibility.

The Government is also adamant the ETS will see a fall in the country’s greenhouse gas emissions. Mr Smith says he has been advised the country’s carbon dioxide emissions will reduce by 19 million tonnes by 2012. He says it will allow the country to meet its Kyoto Protocol targets and not have to pay for excess emissions.

Geoff Bertram of Victoria University’s Climate Change Research Institute disagrees. He says New Zealand’s emissions are not going to fall and about the only payoff will be when the Government goes to international meetings.

Mr Bertram says taxpayers are paying for the government to gloat to the rest of the world about its emissions trading scheme. He says it is just a money go round with those handling the transactions clipping the ticket.

– NEWSTALKZB