Sharon Bird (Cunningham, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Climate Change and Energy Efficiency. Why is it important to access the least cost abatement and link with international carbon markets as part of the government's plan to transform the economy to a clean energy future? How has this been received? What is the government's response?

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 Cunningham for her question. As we know, climate change is a global problem, an international problem, and any solution to climate change is going to have to involve coordination and cooperation within the international community. There is, after all, only one atmosphere and a reduction in pollution anywhere in the world has the same environmental benefit. The most practical way that nations can cooperate to tackle climate change is through the development of credible international carbon markets, because through these markets countries can take advantage of the lowest cost pollution cuts that are available. That is what the government's carbon price mechanism will achieve.

Former Prime Minister John Howard understood this extremely well. The coalition's emissions trading policy that he took to the 2007 election clearly articulated this point. It said:

The Australian scheme will be designed to maximise the prospect of linkages with other schemes, and with policy-based arrangements such as offsets, where offshore emissions-reducing activities could be counted by Australian firms in determining their net emissions.

That was coalition policy and an important piece of economic policy because, through international linking of emissions trading schemes, we can establish a common carbon price between our economy and that of our trading partners over time thereby ensuring that carbon pricing does not disadvantage our industries and our businesses.

The opposition's policy that we should not link with international carbon markets, that we should not allow Australian businesses to purchase carbon credits overseas, would have serious economic consequences. It would more than double the cost of cutting pollution in our own economy to meet emissions reduction targets. This would put Australian businesses at an extreme competitive disadvantage with those overseas. Importantly, economic opportunities for farmers, foresters and other land managers for exporting carbon credits would also be lost. One would imagine that the National Party would have an interest in such an issue. Little wonder that the business community has strongly argued for access to international carbon markets to reduce the cost of emissions reductions. Little wonder that business leaders are rolling their eyes at the economic capacity of the coalition under the member for Warringah's leadership.

The opposition's policy is economically reckless. It is economic xenophobia. It is sending the signal—which it intends to do, one assumes—that it is somehow dubious to be trading with foreigners. It is typical dog whistle politics from the member for Warringah. It trashes commitments that have existed on both sides of this place to economic liberalisation and open trade. It is a white carbon policy on the part of the Leader of the Opposition. What would be next? Do we stop foreign trade? Do we stop trading in the dollar? Do we ban international trade?

Mrs Bronwyn Bishop (Mackellar, Liberal Party, Shadow Minister for Seniors) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order in accordance with the requirement for direct relevance to the question. There will be adequate time for the minister to have debate. This is not the time. He is not responsible for opposition policy. He should return to the question.

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

The minister in conclusion.

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

The humour is in the policy on the other side. The Leader of the Opposition is a significant economic risk. He thinks that a tonne of carbon dioxide is weightless. He thinks cost is nothing. He is not prepared to trade internationally. He is a risk to our economy. (Time expired)

Josh Frydenberg (Kooyong, Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Will the Prime Minister confirm that the government's carbon tax modelling assumes that countries such as Iran, Venezuela, Syria and Yemen will all have operational and internationally linked emissions trading schemes within 10 years? Does the Prime Minister stand by this heroic assumption?

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

What an exquisitely timed question from the member for Kooyong.

Mr Hunt interjecting—

Dr Emerson interjecting—

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

Order! The Prime Minister will resume her seat. The member for Flinders and the Minister for Trade will leave the chamber for one hour under standing order 94(a). Hopefully they will go in opposite directions, but they will leave the chamber.

The member for Flinders and the member for Rankin then left the chamber.

The Prime Minister has the call.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

Thank you very much, Mr Speaker. Can I thank the member for Kooyong for his exquisitely timed question, given we are on the issue of international linking and on the fact that the opposition have committed themselves to a scheme that would shut Australia away from the rest of the world and mean that Australian businesses and Australian taxpayers paid more of a price for moving our nation to a clean energy future and that, in particular, would put a burden of $1,300 on every Australian family because they would turn their backs on the rest of the world.

Throughout the minister for climate change's answer, the Leader of the Opposition was chanting: 'Where are these markets? Where are these markets? Where are these markets?' Let me answer the Leader of the Opposition—

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

Order! The Prime Minister will resume her seat. The member for Kooyong on a point of order?

An incident having occurred in the gallery—

The attendants will deal with the commotion in the gallery. The member for Kooyong.

Josh Frydenberg (Kooyong, Liberal Party) Share this | Link to this | Hansard source

Mr Speaker, I raise a point of order on relevance. I asked the Prime Minister a specific question: will the Prime Minister confirm that the government's carbon tax modelling assumes that countries such as Iran, Venezuela—

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

The member for Kooyong will resume his seat.

Mr Perrett interjecting—

The member for Moreton is warned! The Prime Minister has the call.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

Thank you very much, Mr Speaker. The member for Kooyong has asked me about modelling; he has asked me about global carbon markets. For the information of the House, global carbon markets in, say, 2005 were worth US$11 billion. In 2010 they were worth US$142 billion. I understand that the Leader of the Opposition may miss economic developments, given his lack of interest, but a global trading market that has gone from $11 billion in 2005 to $142 billion in 2010 I would suggest is very hard for anybody to miss. But apparently the Leader of the Opposition has missed it, the same way as he has missed—

Mr Simpkins interjecting—

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

The member for Cowan is warned!

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

the fact that you can measure carbon pollution, which is why you can identify a tonne of it.

On the member for Kooyong's question, he has asked me about the modelling and international action and international markets. The modelling core policy scenario assumes that countries meet the low-end commitments for 2020 they have made at Cancun and at Copenhagen. They are the low-end commitments, I repeat; so that is a conservative approach. From 2016 there is a global market and countries have some form of trade in permits—that is, there will be a mechanism for allowing abatement to be sourced in other countries. And then, of course, after 2020 it is assumed that the global cuts in emissions needed to reach global targets are shared across regions.

On this question of modelling, as the opposition increasingly turns its back on anything that looks like sensible economic policy let us be very, very clear about the modelling. Hundreds of pages of information have been released. This modelling has been undertaken by exactly the same people who advised the Howard government—for example, they modelled for them the impact of the GST. Putting a slur on the modelling is the same as putting a slur on the scientists and on the economists. It is the kind of thing that the Leader of the Opposition does as he twists and turns to try and maintain his protest campaign, but he is completely unable to articulate a policy alternative, which is why he will go around saying all things to all people and agree with the last person he spoke with.

Of all the things that have been dealt with in question time today, the government of course is vitally interested in the question of Australian jobs. It still seems to me that a question that should be answered in this parliament is why the Leader of the Opposition is always available for a photo opportunity with a manufacturing worker but when it comes time in this parliament to put his hand up for $300 million of assistance for them he will not do it because he prefers the cheap, petty politics he is known for. (Time expired)

Josh Frydenberg (Kooyong, Liberal Party) Share this | Link to this | Hansard source

Mr Speaker, could the Prime Minister please table the document from which she was reading?

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

Was the Prime Minister quoting from a document?

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I was referring to a document which is confidential.