Senate debates

Wednesday, 14 September 2011

Matters of Public Importance

Carbon Pricing

5:05 pm

Photo of Lisa SinghLisa Singh (Tasmania, Australian Labor Party) Share this | Hansard source

but, having said that, I am happy to talk about the plan, Senator Bushby. I am pleased that you, as a Tasmanian senator, contributed to this MPI today because it allows me to provide some insight into some of the holes in your arguments that you put forward. Firstly, I would like to congratulate the coalition again. Two days in a row now, you have set the MPI to provide the government with the opportunity for a positive contribution, in this debate, on the clean energy bills—to once again provide this place with an outline of our energy future legislative package.

First we have had Senator Urquhart already highlight the consumer confidence in this package, as supported by ACOSS—and which will be ripped out by those members opposite. But I would like to give you an example of how businesses are looking forward to this new clean energy future. In fact, Senator Bushby and Senator Colbeck, who also contributed to this debate, will be happy to know that it is actually a business in Tasmania. I was fortunate to attend the open­ing of a brand new Alstom Australia work­shop in Cambridge in Tasmania. Alstom's Tasmanian operations are part of a much larger organisation, but they are full of confidence and they always have been when it comes to a clean and sustainable energy future and the innovation that comes with it. That is why they are investing in Tasmania.

That is why Alstom have worked with Hydro Tasmania since 1994. They have broadened their core hydroelectric engineer­ing services to include the manufacturing, refurbishment and installation of components for the mining, metals-processing, forest-processing and ship-building industries. They have cultivated a skilled, experienced and flexible workforce because they believe in a clean energy future package. It has given them great confidence in the future of their company and the viability of clean, green energy—so much so that they have spent $11 million on a purpose-built workshop in Tas­mania. It is a 1.6-hectare site that includes space for future growth of their company.

That is business confidence. That is proof of business confidence in this government's package. And this investment obviously has spin-offs for other Tasmanian businesses. It is not only for Alstom but for all those busin­esses that Alstom will associate with. That is just in Tasmania, let alone all the other industries, businesses and areas in other parts of the country that will benefit from this package.

There is one other major beneficiary. The construction of the Alstom workshop was undertaken by a Tasmanian company called Derwent Park Developments. Derwent Park Developments employs more than 50 builders, subcontractors and suppliers. From Tasmania, Alstom services some of Austral­ia's largest hydro and thermal electricity suppliers—Hydro Tasmania, as I mentioned, Aurora Energy, Nyrstar, AGL, Stanwell, Eraring and Snowy Hydro. So I ask: how is this not a wonderful example of business confidence at work? This is just one story though. I have every confidence that there are many other stories of success and many more to come.

Australia can be only a better place if we encourage businesses like Alstom that are becoming sustainable. To support this, the Gillard government will establish a range of grants to assist businesses to take these steps. This is more positive news that those opposite would not want to know about. An $800 million Clean Technology Investment Program will provide grants to manufactur­ers to support investments in energy efficient capital equipment and low-pollution techno­logies. We also have the Clean Technology Food and Foundries Investment Program, which will provide $150 million over six years to be available to the food-processing industry.

I would like to raise something that Senator Colbeck and Senator Bushby have touched on, and that is the issue of industries overseas that will not be subject to a price on carbon. As Senator Bushby touched on briefly, there are emissions trading schemes in place overseas. We have 89 countries accounting for over 80 per cent of global emissions and over 90 per cent of the global economy that have pledged to reduce or eliminate their carbon pollution by 2020. Scores of countries have already started the transformation to a low-pollution economy. Thirty-two countries and a number of US states have already had emissions trading schemes. This is not something new. An emissions trading scheme is something that has been in place in other parts of our globe now for some time.

On top of that, those other big polluting countries—for example, the opposition members named China—are also introducing emissions trading schemes. The five trading partners of China—including Japan, the US, Korea and India—have implemented or are piloting emissions trading schemes or carbon taxes at the national, state and city level. They are all acting, as is this government. We are acting because we take the issue of clean energy seriously. We want to cut carbon pollution. We are acting on climate change because we believe the science and we understand the business confidence that follows from that, like the example that I have given of Alstom.

I encourage those opposite to read and to get their heads around this clean energy package. It might take a while; there are a number of components to this package. Perhaps they have not got their heads around all of it yet. But when they do over this week, next week and beyond they will notice that there is a lot of support for business. Senator Bushby would care about this, one would think, because he would know, com­ing from Tasmania, that we have a number of small businesses in Tasmania. In fact, 95 per cent of businesses in Tasmania are small business. That is why this government will be providing support to small business. On top of that, the Gillard government recogni­ses that the move to a low-carbon future poses some challenges, and that is why the carbon-pricing mechanism will not apply to small businesses. Instead, it will apply, as we have heard but as the opposition need to be reminded again, to around 500 of the biggest polluters in Australia. Small business will not have to count or monitor their carbon pollution or electricity use. They will not have to fill in a single form as part of the carbon price reform.

While most small businesses will not be materially affected by the carbon price, we recognise the huge contribution that small business makes to our economy and so we will extend the small business instant asset write-off threshold to $6,500. This will boost cash flow and help small businesses to grow and invest in assets which may be more energy efficient. The government will also establish a $40 million program to provide information to small business and commu­nity organisations on practical measures they can take to reduce their energy costs—more good news, Senator Bushby; more good news to those opposite that perhaps they do not want to know about, because we know they are the party of negativity. We know they are the party of nay-sayers who do not want to act, who want to stay in their conservative world of not acting on the big issues, the big reform issues that this country has to tackle and has to face, as they are doing in China, as they are doing in the European Union, as they are doing in parts of the US, in Japan, in Korea and in so many other current parts of the world, India and the like. All these countries are moving to cut their carbon pollution so that our children will enjoy a cleaner energy future.

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