In May 2003 a report prepared for the Ministry of Agriculture and Fisheries (O'Hara report) identified that although some funding for agricultural emissions was being provided by
FRST and
MAF, "The level of investment in abatement research by other public and private sources has been low". The report assessed that a minimum of $4.5 million (optimally $8.4 million) of additional funding would be needed to fund the recommended research program. In 2003, the tax was opposed by MP's of the
ACT Party and the
National Party. but eventually they proposed an alternative solution, as described below.
Shane Ardern, a National Party MP, drove a tractor up the steps of
Parliament as part of a protest against the tax. In 2004, a consortium of the livestock industry agreed to pay for a portion of this research (just not via taxation), and the government reserved the right to reconsider the tax if they or the industry withdrew from the agreement. and the Kyoto treaty may compel New Zealand to pay penalties if gas levels are not brought down. Research shows that the world's livestock produce are a significant contributor to global emissions (NZ exports a significant degree of its dairy and meat, as noted in
Economy of New Zealand.) In 2004, whilst the
Labour Party's coalition still led parliament, New Zealand's livestock farmers agreed to contribute to related scientific research, and to fund an unspecified portion of the costs of the
Pastoral Greenhouse Gas Research Consortium. In September 2009, the National-led government announced that a push would be made for the formation of a Global Alliance to investigate methods of reducing greenhouse gas emissions due to agriculture.
Simon Upton, a former National Party MP and
Minister for the Environment, was appointed as a special envoy to liaise with other countries on the issue.