Darren Cheeseman (Corangamite, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Climate Change and Energy Efficiency. What are the economic benefits of the government's plan for a clean energy future? Why is it important that certainty is provided to all Australians to ensure that these economic benefits are realised?

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 Corangamite. The government's Clean Energy Future legislation which is before the House will deliver very significant benefits for our economy, including increased investment and jobs growth under a carbon price. Treasury modelling predicts that the carbon price will drive around $100 billion of investment in renewable energy over the period to 2050—$100 billion worth of investment in the renewable energy sector over the period to 2050. That will transform our energy sector and create a very considerable number of jobs, and those jobs will not only be in new industries but will also support jobs in traditional industries, where we will have growth in areas such as construction, electrical services and metal manufacturing. Put simply, the Clean Energy Future plan is good for economic growth in this country, good for productivity, good for investment and good for jobs. It is critical therefore that this parliament passes the legislation and provides certainty to businesses so that they can get on with the job of making the investments that are necessary in clean energy in particular.

It is clear from reports that are contained in the Financial Review today that the uncertainty being generated by the rancour that is coming from the other side of this parliament by its opposition to the clean energy legislation, is directly hurting the economy and directly impacting upon the costs of investments. Tony Stocken of BP Solar had this to say in the Fin. Review today:

Stable policy and certainty is crucial to all long-term infrastructure investments.

Nick Sankey from the Commonwealth Bank makes clear that there is a risk premium in fact being applied to investments in renewable energy due to the uncertainty that is being caused by those opposite. He had this to say:

There's very much a higher premium now before legislation has been passed. But then once legislation goes through, I think in most people's minds that premium will reduce. That means the legislation needs to go through.

Professor Paul Simshauser had this to say:

Project financing in Australia has become a bit more problematic. We're a bit of an anomaly globally. The only thing we could put it down to was we were having one of the most ferocious debates in the world on a price of carbon.

That issue has also been reinforced in the reports by Martijn Wilder of Baker and McKenzie, who said, 'Until the opposition makes it clear what its actual policy is, there will be uncertainty.' And it goes on and on. That rank political opportunism from the Leader of the Opposition on this important economic policy and environmental reform is costing this country investment, it is costing investors in the price of the finance that they are raising and it is costing us jobs.

The Leader of the Opposition talks the economy down, undermines consumer sentiment, creates uncertainty for investment, terrifies pensioners—

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

Order! The minister will not debate the question.

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

with claims of ridiculous cost increases and then says he is going to take away their—

Opposition members interjecting—

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

Order! The minister will resume his seat.