Federated Farmers claims the looming Emissions Trading Scheme costs will hit farmers hard in the pocket – but Prime Minister John Key says households will be paying a modest $3 a week.

Petrol prices are expected to rise by three cents a litre and electricity by 5% when the ETS starts on July .

The Prime Minister says New Zealand has to bring in an ETS because without it, Kiwi  goods would be rejected internationally.

Climate Change Minister Nick Smith says the Government will run information sessions around the country next month in the lead up to the Emissions Trading Scheme’s introduction. The sessions will be aimed at householders, farmers and small businesses to make sure they know what’s required of them when the scheme starts.

The Minister says there’s some public confusion over the scheme and it’s crucial people know what the extra costs will be before they start paying.