Belinda Neal (Robertson, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Defence Personnel, Materiel and Science and Minister Assisting the Minister for Climate Change and Water. Will the minister update of House on the business community’s view of the importance of having the Carbon Pollution Reduction Scheme passed now?

Greg Combet (Charlton, Australian Labor Party, Minister Assisting the Minister for Climate Change) Share this | Link to this | Hansard source

I thank the member for Robertson for the question. The Carbon Pollution Reduction Scheme legislation is due for debate in the Senate this week and it is time now, with that debate to ensue in the Senate, for the coalition to take responsibility in relation to this important public policy issue, to quell the sceptics in its own ranks, to stop the delay and to support the scheme.

The Carbon Pollution Reduction Scheme has wide support throughout the community. Major environment groups have indicated their support for it, as indeed have major business organisations. It is important to refer to a couple of those representatives of the business organisations in responding to this question. Ms Heather Ridout, the Chief Executive of the Australian Industry Group, is on record with the following:

We—

this is on behalf  of the membership of AiG—

urge the coalition to work with the government to ensure the best deal for business and pass this legislation this year.

Ms Katie Lahey, the CEO of the Business Council, has also contributed:

To drag on the debate whilst we have got this global financial crisis is just one more complexity that business has got to factor into its planning cycle, and for some businesses it could be the straw that breaks the camel’s back.

The business community has this attitude because it wishes to secure certainty in the investment environment. Everyone in the business community knows that a carbon price is coming into the Australian economy. We are seeing emissions trading schemes, of course, in many other advanced economies and it is an issue that is well advanced in debate in the US. Business investment certainty is critical and is why the scheme must be passed. It is needed in particular for projects where assets have a long life. For example, if an investment group is planning an investment in an area such as electricity generation or in the resources sector, where assets typically have very long lives, the way in which a carbon price is to be introduced into the economy is extremely important. That is why the business community is so frustrated at the position of the coalition on this important issue. Just last Friday, Mr Greig Gailey, the BCA president, was reported in the Australian as saying:

The Liberal and National parties have never been totally clear with us about what their position was, and it’s still not clear …

Peter Coates, the Chairman of Xstrata in Australia, also made the following observation:

The coalition is perceived to have no position on the ETS other than putting it off until next year.

These are simply not acceptable positions for the coalition to have after such a long period of time. There has been report after report after report—Professor Garnaut’s review, the green paper, the white paper, the exposure legislation and the legislation being debated in this place and now due for debate in the Senate. There is no further excuse for delay. The business community deserves better from the opposition on this important issue.

All of the reasons that have been put up by the Leader of the Opposition for further delay in consideration of this important legislation are shot to pieces. One of the arguments put most recently was concerning the desire for the government to put forth regulations dealing with emissions-intensive trade-exposed industries. Last Friday, the government put forth comprehensive material dealing with those regulations. There is now no further excuse. Now all we are seeing is the suggestion that the coalition will filibuster in the Senate, and it is not good enough on this important environmental and economic reform. The coalition has to take responsibility, debate this properly, put forward constructive proposals and support the CPRS.