Nikki Kaye: What advice has the Minister received on the statement by those who are promoting a 40 percent reduction in emissions by 2020 that a 100 percent renewable electricity supply is easily achievable by 2020?

Hon Dr NICK SMITH: I am advised that that would require, first, the writing-off of $4.5 billion of thermal generation assets. It would also require $11 billion for the replacement capacity of 2,500 megawatts, and $2 billion for additional renewable peaking stations needed to ensure security of supply in a dry year. This amounts to a total capital cost of $17.5 billion, excluding the additional transmission investment that would be required, and this would amount to a 30 percent increase in the power price for all consumers. Going 100 percent renewable would also require the equivalent of another seven Clyde Dams to be built by 2020. I do not describe $17.5 billion, a 30 percent power price increase, and seven Clyde Dams as being easy.

Nikki Kaye: What proposals has the Minister seen for reducing emissions in agriculture that would enable New Zealand to achieve a 40 percent reduction in emissions by 2010?

Hon Dr NICK SMITH: I have seen proposals from those who promote a 40 percent reduction that agricultural emissions can be dramatically reduced through using a smart farming approach. These methods entail a one-third reduction in stock intensity, which would, of course, reduce emissions accordingly. However, the consequences of cutting by one-third our stock of sheep, cattle, and deer would cost New Zealanders approximately 50,000 jobs and $6 billion in export earnings, and would significantly reduce living standards for all New Zealanders. Such policy options for agriculture are not being considered. Our efforts as a Government are focused on investing in the new technologies that will enable emissions reductions while maintaining our important agricultural economy.