Senate debates
Monday, 30 November 2009
Carbon Pollution Reduction Scheme Bill 2009 [No. 2]; Carbon Pollution Reduction Scheme (Consequential Amendments) Bill 2009 [No. 2]; Australian Climate Change Regulatory Authority Bill 2009 [No. 2]; Carbon Pollution Reduction Scheme (Charges — Customs) Bill 2009 [No. 2]; Carbon Pollution Reduction Scheme (Charges — Excise) Bill 2009 [No. 2]; Carbon Pollution Reduction Scheme (Charges — General) Bill 2009 [No. 2]; Carbon Pollution Reduction Scheme (CPRS Fuel Credits) Bill 2009 [No. 2]; Carbon Pollution Reduction Scheme (CPRS Fuel Credits) (Consequential Amendments) Bill 2009 [No. 2]; Excise Tariff Amendment (Carbon Pollution Reduction Scheme) Bill 2009 [No. 2]; Customs Tariff Amendment (Carbon Pollution Reduction Scheme) Bill 2009 [No. 2]; Carbon Pollution Reduction Scheme Amendment (Household Assistance) Bill 2009 [No. 2]
In Committee
6:01 pm
Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Hansard source
I am sorry—Senator Xenophon, I just had a quick chat. This is what I understand occurred in the European Union, and if there are people from the EU listening—I am sure there will not be—I apologise if I get this wrong. In phase 1 the allocation of permits was identified three years in advance and then in phase 2 it was identified five years in advance. Entities were not able to trade between one period and another, and I think most commentators would suggest that in fact what occurred was that they overallocated. They got the cap wrong. That resulted, of course—basic economics—in an excess of supply and therefore the price dropped. That is not the design of the Australian scheme. I had a question from Senator Eggleston, but I am happy to finish any question you have, Senator Xenophon.
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