A parliamentary committee has been told by Federated Farmers that since the emissions trading scheme (ETS) would create economic disaster, it should be scrapped.  

The previous government had designed the ETS and passed before the election.

However, it has been put on hold by the new government, which is reviewing it through a special committee of selected members.  

It should be noted that limits on greenhouse gas emissions would be imposed on all sectors of the economy under the ETS, which will not take all the sectors under it at the same time.  

Carbon credits would be required to be bought by those who exceed their limits from those under their caps.

Federated Farmers president Don Nicolson said at a committee hearing today, “We can ill afford to further weaken the economy in the current crisis. We're talking about an economic implosion.”

It was confirmed by the federation in its written submission, “The ETS was fundamentally flawed and should not go ahead because it would result in great harm to the primary sector and the economy as a whole.”

Fed Farmers feel that the ETS was rushed and badly thought-through. They request the government to review the decision.

(Via TopNews New Zealand. Contributed by Tangaroa Snell)