House debates Questions without Notice

Carbon Pricing

Thursday, 15 September 2011 House of Representatives

Ms Anna Burke

Ms Anna Burke Deputy-Speaker

2:16 pm

My question is to the Minister for Climate Change and Energy Efficiency. What are the facts and the economic benefits of the government's plan to put a price on carbon pollution?

Greg Combet

Greg Combet Charlton, Australian Labor Party, Minister for Climate Change and Energy Efficiency

I thank the member for Chisholm for her question. As I indicated to the House yesterday, the passage of the clean energy bills will unleash a lot of investment in clean energy generation and clean technology innovation. This is going to be critical to future growth in our productivity and our living standards. That is something that is well understood by economists around the world. However, there does appear to be some ignorance of the facts and of the economic benefits, by those opposite, about this. For example, on Monday, the Leader of the Opposition claimed the following:

There is no way on God’s earth that you can have a solar powered steel mill, just as there is no way on this earth you can have a wind powered manufacturing plant and anyone who thinks otherwise is delusional.

That is what the Leader of the Opposition said. Unfortunately, this does ignore the facts and the evidence that these types of investments exist. For example, in Germany, BMW are currently building wind turbines at their Leipzig manufacturing plant that will provide the electricity to assemble hundreds of vehicles per day from 2013.

In the United Kingdom, Ford's diesel assembly plant is already completely wind powered—a manufacturing facility completely wind powered. Also in the United Kingdom, a Nissan auto plant currently has—

Unidentified interjection - Hansard doesn't record who said this

Opposition Members:

Opposition members interjecting

Harry Jenkins

Harry Jenkins Speaker

Order! A question has been asked. The minister is responding. He should be heard in silence.

Greg Combet

Greg Combet Charlton, Australian Labor Party, Minister for Climate Change and Energy Efficiency

I was saying that also in the United Kingdom a Nissan auto plant currently has 10 on-site wind turbines producing up to 10 per cent of the energy required for the plant. In France, solar powered furnaces with the capacity to reach temperatures of 3,000 degrees plus and capable of melting steel are already in operation. What do each of these countries, in which these facilities are located, have in common? They have a carbon price in their economy.

Opposition members interjecting

Harry Jenkins

Harry Jenkins Speaker

The minister will resume his seat again.

Mr Laming interjecting

The member for Bowman will leave the chamber for one hour under standing order 94(a). Sometimes it is in the timing, honourable members—or lack of!

The member for Bowman then left the chamber.

I find it intolerable that to be able to hear the minister who is responding to the question I have had to invite him to sit down twice. I expect him to be heard in silence.

Greg Combet

Greg Combet Charlton, Australian Labor Party, Minister for Climate Change and Energy Efficiency

Facts are very important in this debate. And it is also important to look at the outlook for the coal industry in this respect. ABS data that was released yesterday revealed that coal exploration in Australia reached a record high—66 per cent higher than the December 2010 quarter, the last period before we released the carbon pricing framework. This is the industry that the Leader of the Opposition said 'would be destroyed' by a carbon price. There are record levels of investment and exploration going on.

Harry Jenkins

Harry Jenkins Speaker

Order! The minister will come back to the question.

Greg Combet

Greg Combet Charlton, Australian Labor Party, Minister for Climate Change and Energy Efficiency

Also, as the Prime Minister mentioned, the Australian Industry Greenhouse Network that does represent miners and manufacturers—a group not always on our side in many issues—confirmed that the opposition leader's plan, his so-called 'subsidies for polluters' direct action plan, would cost households $1,300 a year in 2020.

We know what the Leader of the Opposition does when someone does not agree with him. He has a go at them. Just have a look at the scientists and the economists.

Harry Jenkins

Harry Jenkins Speaker

Order! The minister will not debate—

Mrs Mirabella interjecting

Order! The member for Indi! The minister will not debate the question.

Greg Combet

Greg Combet Charlton, Australian Labor Party, Minister for Climate Change and Energy Efficiency

The plebiscite bill went down today, too—another stunt. The carbon price is a key economic and fundamental environmental reform. I call upon all of those opposite who support action on climate change to support these bills. (Time expired)

Tony Abbott

Tony Abbott Warringah, Liberal Party, Leader of the Opposition

Mr Speaker, I seek to ask a supplementary question of the minister.

Harry Jenkins

Harry Jenkins Speaker

I have not allowed that in the past on opposing-side questions. It was a good try to test if I am awake—but that's okay! The member for Solomon has the call.