Daryl Melham (Banks, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Climate Change and Energy Efficiency. Will the minister update the House on the government's efforts to introduce a carbon price that will cut pollution and drive investment in clean energy? How have these efforts been received and what is the government's position?

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

I thank the member for Banks for his question. The government, as the Prime Minister has just outlined, is determined to make a very important reform to our economy for the benefit of our long-term competitiveness and the benefit of our environment by placing a price on carbon. Of course, we are pursuing that reform through the discussions that we are holding within the Multi-Party Climate Change Committee. The context of that policy is that—

Mrs Bronwyn Bishop interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The member for Mackellar is warned!

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

a price on carbon will apply to fewer than 1,000 of the largest emitters of carbon pollution in our economy, and every cent raised by the payment of the carbon price by those entities will go to assisting households meet any price impacts, supporting jobs and competitiveness in the trade exposed part of the economy and supporting clean energy programs. It is important, in reference to the previous question as well, to bear in mind that it has been the clear position from the outset that there will be support for businesses that are working in the emissions-intensive and trade exposed part of the economy.

Furthermore, it is very important to understand in pricing carbon that it will make cleaner energy sources cheaper relative to higher polluting sources of energy. That is a very important basis for pricing carbon in the economy. The discussions that we are having through the multi-party committee are constructive. Of course, there are some issues that we continue to work through, but all parties are approaching these discussions in good faith.

Opposition members interjecting—

You can still participate. Change your mind; get on board; show some respect for the scientific evidence. The government will continue to work through those issues with the other parties in the Multi-Party Climate Change Committee.

On the weekend we heard from 15 of Australia's top energy companies, including AGL, BP Solar, GE and TRUenergy, who all called for the urgent introduction of a price on carbon to provide certainty for business to invest in clean energy projects and jobs. We have also heard from peak bodies representing Australian business and industry. It is relevant to the debate that the Business Council of Australia and the Australian Industry Group both support a market mechanism to put a price on carbon, and they have not supported the coalition's subsidies-for-polluters policy.

In addition, today there are a number of members of the 'Say Yes' to carbon pricing campaign in Canberra, representing a wide range of Australian people and Australian organisations. That group includes two former Liberal leaders, one of whom is former Liberal Prime Minister Malcolm Fraser. I am also referring to former Liberal leader John Hewson. Amongst the group are representatives from environment groups, unions, economists, academics, farmers, doctors and sports people. They collectively signed a letter today calling for a price on carbon. Dr Hewson had this to say at a press conference today in relation to this:

Look, you've got to price carbon as the centrepiece for any adequate response to the challenge of climate change.

Dr Hewson is, in the true tradition of market economists that have guided philosophy on the other side of the House for a long period of time, very unlike the current Leader of the Opposition, who has no faith in market mechanisms and refuses to accept the scientific evidence on climate change. (Time expired)