Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Hansard source

My understanding on this matter is that indeed there is no legislative or regulatory regime in existence governing the construction and operation of nuclear power plants. That is a fact of life, and that is one of the reasons why the Switkowski committee has been established—to advise the government of what legislative arrangements would need to be put in place to enable a nuclear power industry to develop in this country. Of course you would have to develop the appropriate regulatory regime through legislation to ensure the safe and responsible operation of nuclear power plants in this country. We have regulatory arrangements regarding the operation of the research reactor at Lucas Heights, regarding the disposal of waste in this country and through the appropriate regulator that currently exists for those matters, but obviously for Australia to contemplate the establishment of nuclear power as a source of electricity the appropriate regulatory regime would need to be put in place and it does not currently exist.

I do not know that it is true to say that nuclear power has been legislatively banned—I will get further advice on that—but I think the proper construction of the situation is that there is simply no legislative or regulatory regime in place for someone contemplating an investment in nuclear power to be able to operate within. If you were going to enable the establishment of nuclear power in this country, you have to put such a regime in place to ensure the safe and effective operation of nuclear power. My clear view is that as and when that may occur—and may I, in responding to the previous question, say that it would certainly be my prima facie position that the Treasurer is right and that it should be based on the economic viability of nuclear power—the government can establish the appropriate regulatory settings, but from that point forward it should be a matter for the commercial power generation sector to determine whether nuclear power is economically viable. That will have to take into account a whole range of other settings and the cost of power generated by conventional means.

We have consistently said on the latter part of your question, Senator Brown—through you, Mr President—that we think it would be economic vandalism, to quote Mr Paul Kelly from Insiders, for Australia to put in place a separate carbon tax or the equivalent of a carbon tax which is the cap and trade system for carbon emissions. If we were to do that unilaterally, all we would be doing is exporting energy intensive industries and the jobs that go with them to countries not so inclined to put such a tax or trading system in place. We think that would be, as Mr Kelly said, economic vandalism and it is not something we would contemplate. However, the Prime Minister has indicated that, if a global arrangement were to be established that involved everyone participating in some sort of emissions-trading system, Australia would be prepared to contemplate such an arrangement because it would by definition mean that Australia would not be cutting off its nose to spite its face. It would mean that we would be competing fairly with other countries around the world in terms of our capacity to attract and retain energy intensive industries and the jobs that go with them.