Forestry slams emissions scheme 

New Zealand's forestry giant Carter Holt Harvey stands to lose hundreds of millions of dollars if the Emissions Trading Scheme comes into force.

But a parliamentary select committee has been told that's the tip of the iceberg and that forestry is "the fall guy" for the scheme designed to reduce our carbon footprint.

Forests convert harmful carbon dioxide to oxygen and forestry plays a big part in the new emissions trading environment.

From January 1, any company cutting down trees planted before 1990 and with no plans to replant will be penalised.

"What I would say to that is that it's another classic example of forestry being the fall guy," says Ross Green of the Flexible Land Use Alliance, which represents the country's major forestry companies.

The forestry industry claims it is the fall guy because it estimates massive losses from the Emissions Trading Scheme.

It says it will be stung for CO2 emissions and stung again because selling or converting land with pre-1990 trees on it now carries a cost.

The alliance says it also has a problem with the officials implementing the Emissions Trading Scheme.

It claims when criticised, officials are using the bureaucratic version of the "rich prick" argument - that is to say that any negative impact of the scheme would only impact on high net worth individuals.

One high net worth individual who could be impacted is Kiwi billionaire Graeme Hart.

Parliament's Finance and Expenditure Select Committee was told on Wednesday that his company, Carter Holt Harvey, could lose around $400 million across its entire operation.

"People are arguing that we must take action on climate change but it must not in any way have any impact on anybody that is in any way negative. That's not possible," says Michael Cullen, Deputy Prime Minister.

Forestry's concerns comes just days after Rio Tinto said it would close its smelter at Tiwai Point if the Emissions Trading Scheme was introduced in its current form.