Senate debates
Monday, 7 November 2011
Bills
Clean Energy Bill 2011, Clean Energy (Consequential Amendments) Bill 2011, Clean Energy (Income Tax Rates Amendments) Bill 2011, Clean Energy (Household Assistance Amendments) Bill 2011, Clean Energy (Tax Laws Amendments) Bill 2011, Clean Energy (Fuel Tax Legislation Amendment) Bill 2011, Clean Energy (Customs Tariff Amendment) Bill 2011, Clean Energy (Excise Tariff Legislation Amendment) Bill 2011, Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment Bill 2011, Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment Bill 2011, Clean Energy (Unit Shortfall Charge — General) Bill 2011, Clean Energy (Unit Issue Charge — Auctions) Bill 2011, Clean Energy (Unit Issue Charge — Fixed Charge) Bill 2011, Clean Energy (International Unit Surrender Charge) Bill 2011, Clean Energy (Charges — Customs) Bill 2011, Clean Energy (Charges — Excise) Bill 2011, Clean Energy Regulator Bill 2011, Climate Change Authority Bill 2011; In Committee
11:13 am
Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source
I think I have just answered that about seven times for Senator Xenophon. I will repeat what I said: deferred payment arrangements increase the administrative complexity of options and inhibit the development of secondary markets to manage carbon pricing risk. Obviously, secondary markets actually provide firms with an indication of where the price is going in the future—that is important for business. I have also indicated the government has said we will offer loans to emissions-intensive generators who are otherwise unable to secure finance on reasonable terms, to buy future vintage carbon units at auction. This addresses working capital constraints directly, without interfering with the function of the auction. We are also providing $5½ billion of assistance under the Energy Security Fund to the most emissions-intensive generators.
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