Mark Dreyfus (Isaacs, Australian Labor Party, Cabinet Secretary) Share this | Hansard source

It is with great pleasure that I rise to speak on this matter, because the state of the Australian economy, our prosperity, fairness and equity are of the greatest importance to the Gillard Labor government.

What we have heard today so far from the coalition—from the member for Flinders and the member for Gippsland—is yet more of the campaign of negativity that we have heard from the Leader of the Opposition and more of the backward views that we have come to expect from the coalition, more of their shameless deceit and more of the false claims that they have repeatedly made since we announced the carbon price package in July last year. And it is a campaign which is running out of puff.

We have an opposition which continues to talk down our economy. We have an opposition which continues to misrepresent the state of our economy. We have a coalition that pretends that it cares about climate change while fighting against real action.

It is important that members opposite realise a few facts about the actual state of the Australian economy. Under our government the Australian economy continues to out-perform other advanced economies. As the Treasurer said in question time today, the economy has grown by 11 per cent since the start of 2008—that is, since Labor has been in government. And that is despite the global financial crisis that our country and the rest of the world has been enduring. The reason that the Australian economy continues to out-perform other advanced economies is Labor's investments in skills, infrastructure, education and research—all of which support economic growth in the long term. And the economy has continued to grow because we acted to stimulate the economy at the right time.

Of course too many Australians are finding it hard to make ends meet, but that is why we—Labor—continue to manage the economy in the interests of working people. That is why we cut taxes for low income earners by raising the tax-free threshold. That is why we invest in better health care. That is why we invest in dental reform. That is why we invest in education and training.

Let's remember: the opposition leader claimed that price rises would be unimaginable. Over and over again we were told, over the last year, that price rises would be unimaginable. We were told that the carbon price would be a wrecking ball through the Australian economy. We were told by the Leader of the Opposition, by the member for Flinders, by the member for Indy and so many of those opposite that it would destroy jobs. And none of those claims is true.

Those opposite like to say that we are acting ahead of the world. This is another thing that we need to be clear about. The world is acting. Ninety countries, representing 90 per cent of the global economy, have committed to reduce their carbon pollution and have policies in place already to achieve those reductions. And many of those countries are relying on a market based mechanism.

I know that those opposite do not like to hear this but those countries which are relying on a market based mechanism know, as our government knows, that a carbon price is the most effective way to reduce emissions—and more efficient than other, direct subsidy policies. That is why by next year 850 million people will be living in countries, states or cities with emissions trading systems. That includes countries like the United Kingdom, Germany, France, Sweden, Norway, New Zealand and Switzerland.

Carbon trading is already operating at a subnational level in the United States, at a subnational level in Canada and at a subnational level in Brazil. And there is growing momentum to introduce carbon trading around the world. California will commence emissions trading next year. China is developing pilot emissions trading schemes in seven cities and provinces, which will also commence next year. And Korea's emissions trading scheme—a legislated emissions trading scheme—will commence in 2015.

The delusional approach taken by those opposite—they have nailed their colours to the mast here—is that nothing is happening in the rest of the world. That means that every time a new country acts—or a place like California legislates to commence an emissions trading scheme on 1 January next year, or Korea legislates to commence its emissions trading scheme in 2015—we get denial from those opposite. They do not want to own up to what is happening in the world. They do not want to approach this.

Mr Tudge interjecting—

I would have expected better from the member for Aston because he has some economics training. I would have expected him to be able to read what the OECD and the IMF say about this, and what all countries that have already introduced the emissions trading scheme are saying—they know that it is the least cost, most efficient means of reducing carbon pollution. Countries like Turkey, South Africa, Thailand and Chile are also working to develop carbon pricing schemes, and in fact 94 per cent of OECD countries—

Mr Hunt interjecting—

Mr Tudge interjecting—

I know this is hard for those opposite to grapple with—94 per cent of OECD members have, or are implementing, emissions trading at the national or sub-national level.

It is not surprising that those opposite disregard these facts, as they so often do. The Leader of the Opposition who thinks that climate change is crap. He likes to pay lip-service—

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