John Murphy (Reid, Australian Labor Party) Share this | Hansard source

I rise to strongly support the member for Throsby’s very important motion about carbon pricing and I applaud the motion. In response to all those issues raised by the member for Hughes, I remind him that if you do not look after the environment you will have no economy. I have long spoken about the need to arrest the damage that excessive carbon emissions are having on our environment and indeed on our economy. I know that many people in my electorate of Reid want to see action to mitigate the effects of climate change so that we can create a sustainable environment for future generations.

Doubtless you will recall from last year how the opposition voted in this House on my motion on climate change. The motion stated that climate change is real and human induced. The motion was passed unanimously. If we all agree on this fact, why are those opposite opposed to addressing the problem in the best interests of our nation in the fairest and cheapest way? I believe part of the problem with the opposition is the fact that there are still sceptics, like the previous speaker, in the Liberal Party who do not really believe in climate change. Indeed, the Leader of the Opposition, as the member for Throsby pointed out in his contribution, is on record as saying that it is ‘absolute crap’. Perhaps that is why the opposition—and the Leader of the Opposition in particular—have been very inconsistent on climate change and have still not provided Australians with any viable policy.

Our government, in stark contrast, has always expressed our concerns about the threats posed by climate change and our desire to address the issues for the long-term benefit of all our people and our international neighbours. If you look at the scientific evidence presented to us, there is no denying the need to act now on climate change. The Multi-Party Climate Change Committee also knows that there is now 100 per cent certainty that the earth is warming and 95 per cent certainty that human induced emissions are the main cause of the warming observed over the last century. This information was presented to them by Professor Will Steffen.

Globally, 2010 was the equal warmest year on record, with 2001 to 2010 being the warmest decade. Some estimates indicate that, if we do not act now, irrigated agriculture in the Murray-Darling Basin will virtually disappear by 2100. Only last week I raised the new research findings about the probability that extreme climatic events, particularly floods and cyclones, are likely to increase in frequency and ferocity and about how this is linked to human activity. In light of the recent floods we have experienced, we can see the costs to the agricultural sector, the mining sector, the tourism sector, infrastructure and human life. Surely we want to mitigate those disasters.

We also know that Australians are the worst polluters per capita in the developed world. Surely this is cause for concern and should be a priority of any responsible government. The science is clear. In light of the overwhelming scientific evidence that climate change is real and human induced, the need to act is also clear. The cost of inaction will far outstrip the cost of effective action now. That is exactly why our government has announced that we will cut pollution, tackle climate change and deliver economic reform to move from a high-polluting economy to a clean energy future. To achieve this, we are proposing, as you know, a two-stage plan for a carbon price mechanism that will start with a fixed period of three to five years before transitioning to an emissions trading scheme. Putting a price on pollution will give a very strong incentive for high-emitting businesses to reduce their pollution levels through innovation, creating a stronger economy and new jobs. A fixed price will also provide business certainty and help make the transition to an ETS easier.

Business uncertainty is affecting important long-term investments. As Heather Ridout from the Australian Industry Group said in a speech in 2009:

Many of our members are telling us that they are holding off making investments until there is a greater degree of clarity around domestic climate change legislation.

Mr Rod Sims, who is an expert advisor to the government’s multi party climate change committee, states:

The introduction of a carbon price will allow the currently lowest cost measures to be chosen while technological change drives the best longer term solutions.

It is a widely held view that a market mechanism is the most efficient and cost-effective way of establishing a carbon price. This was even supported by former Prime Minister John Howard. The benefits of a carbon price have been widely supported and the fearmongering we have witnessed from those opposite should be condemned for limiting and damaging our otherwise strong and stable economy. I strongly support the motion and I applaud the member for Throsby for bringing it to the parliament.

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