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The agriculture industry is to pour more cash into mitigating stock emissions in the clearest indication yet the government is poised to back down on the fart tax.
Pastoral Greenhouse Gas Research Consortium chairman Mark Leslie says the group will increase its budget to $3.4 million next year, a rise of $800,000.
The consortium -comprising Fonterra, Meat NZ, AgResearch, Wrightson and DEEResearch- faced an uncertain future when the government unveiled its compulsory research levy.
Leslie says the government's heavy-handed approach deterred potential research partners joining the consortium "because they did not want to pay for research twice".
Many predicted the consortium, which has been lobbying for the tax to be scrapped, would be disbanded if unsuccessful. So the budget increase is adding to speculation the government is poised to back down on the tax in the face of intense public pressure and renewed efforts from the industry to appease it.
Climate Change Minister Pete Hodgson says if the government is satisfied the private sector is funding enough research, it will scrap the tax.
Leslie says the consortium has agreed to increase its budget before Hodgson's statement and it would rubber-stamp the move before the end of this month.
"We have said all along we have been doing the research and would be looking to increase the amount of money we spend on it and it now appears that message is getting through."
Hodgson has faced a grilling in parliament from National, ACT and NZ First MPs, about his pending decision on the levy's future.
National's David Cater asked if the "minister shared the optimism of his office spokesperson, who was quoted in the Otago Daily Times on Saturday as saying that it looked as if the Government would end up avoiding the need to bring the levy in?".
Hodgson replied: "Time will tell, but if that does happen, that will be the Government's first preference."
NZ First's Doug Woolerton asked: "Why will the minister not admit that the proposed methane emission research levy on farmers was a mistake and would do nothing for world greenhouse gas emissions?"
Hodgson replied: "Should the research into methane emissions prove a little, moderately, or even very successful, it will have small, medium, or large effects on greenhouse gas emissions. Therefore, it is worth doing, because it puts more money on our farmers' bottom lines.
"The Government's preference has always been for voluntary funding, and we are pleased that the sector is reconsidering its position on that."
A special working party is looking at what research needs to be done to reduce New Zealand's emissions below 1990 levels, against what research is already being done in the field.
