Senate debates

Wednesday, 11 March 2009

Questions without Notice

Emissions Trading Scheme

2:25 pm

Photo of Ron BoswellRon Boswell (Queensland, National Party) Share this | | Hansard source

My question is to Senator Kim Carr in his capacity as Minister representing the Minister for Resources and Energy and in his own capacity as Minister for Innovation, Industry, Science and Research. The global crisis has seen a dramatic fall in prices of coal, which has led to the shedding of 2,700 jobs in the Queensland coalfields. The proposed bureaucratic ETS will impose a $2.4 billion carbon charge on Queensland’s coal industry as well as a carbon charge on every electrical drag line and electric motor on the coalfields. Does the minister agree with these additional charges being imposed on Queensland’s largest employer and can he justify the extra cost?

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

I thank the senator for his question. The government’s proposals with regard to the CPRS have been outlined through a number of different stages—through the white paper and now through the draft legislation. That policy framework provides a clear framework for business investment and sets out how our carbon emissions will be managed in the Australian economy in the long term. Whether it be the coal industry or any of the other industries that are emissions intensive and trade exposed, the government is committed to addressing the competitive challenges that face emissions-intensive trade-exposed industries. We will ensure that incentives remain for these industries to adjust to an emerging global carbon constrained economy. The allocation of free permits to emissions-intensive trade-exposed industries will ease the transition to a lower emissions economy while encouraging industry to move towards lower emissions-intensive production techniques. There has also been additional assistance outlined in regard to the electricity sector adjustment scheme.

Photo of Ron BoswellRon Boswell (Queensland, National Party) Share this | | Hansard source

My question was—

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Senator Boswell, is this a point of order?

Photo of Ron BoswellRon Boswell (Queensland, National Party) Share this | | Hansard source

Yes it is—relevance is the point of order. I do not have to quote you section 194.

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

No, I just need to know that it is a point of order. I did not know whether you were standing for another reason.

Photo of Ron BoswellRon Boswell (Queensland, National Party) Share this | | Hansard source

To make the answer relevant the minister would only have to say he agrees or he disagrees. I am sure there are millions of unionists out there who would be interested in Senator Carr’s answer.

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Senator Carr has 41 seconds in which to address the question that has been asked.

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

I am addressing the question. I am addressing the question directly. The senator asked me what my attitude towards the scheme is. I am explaining the attitude of the government to this scheme and the way in which we are moving towards the transformation of the Australian economy. Unlike the conservative opposition, which has no policy position on this and no clear understanding of where we are going—in fact they are hopelessly divided on this issue—we have a clear view of the appropriateness of the directions we are following and we are putting a bill to this chamber, and this chamber will have the option of accepting it or rejecting it and considering these things in detail. (Time expired)

Photo of Ron BoswellRon Boswell (Queensland, National Party) Share this | | Hansard source

Mr President, I ask a supplementary question. Does the minister believe putting a carbon tax or charge on the Queensland coal industry and every piece of equipment used in it will force more job losses in the Queensland coal industry and could he give us an estimate of how many more jobs will go?

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

The senator has asked me about the structure of the scheme, which I think, as Senator Wong has—

Opposition Senators:

Opposition senators interjecting

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

It was a direct question about the structure and effect of the scheme. I have indicated that the government is about ensuring that there is a proper approach to the transformation of the Australian economy that balances our economic needs with our environmental needs and with our social needs. In that context, I would ask: what is the position of the opposition? Do you think you can maintain a position of putting your head in the sand and pretending that these problems will go away or do you take the view that it is appropriate to engage to ensure the protection of jobs, to ensure the economic prosperity of this nation and to ensure that we do have a balanced economy that deals with these fundamental issues that the entire world is trying to come to terms with?

Photo of Ron BoswellRon Boswell (Queensland, National Party) Share this | | Hansard source

Mr President, I ask a further supplementary question. The Queensland coal industry employs 15,000 people directly, 45,000 people indirectly and exports $16 billion of coal annually. What steps will the minister put in place to retrain the laid-off workers when the carbon tax cuts in and reduces more jobs in the Queensland coal industry?

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

The government has outlined a range of measures in the operation of the CPRS to allow for incentives to be provided to industry to encourage the transformation of these industries. These include a $500 million National Low Emissions Coal Fund to accelerate the development and deployment of clean coal technologies, a $500 million Renewable Energy Fund to support the development of innovative renewable energy technologies, a $150 million Energy Innovation Fund to support critical clean energy technology research and $100 million per annum for a global carbon capture and storage initiative to actually accelerate the deployment of that technology. This is on top of the Climate Change Action Fund.

Photo of Ron BoswellRon Boswell (Queensland, National Party) Share this | | Hansard source

Mr President, a point of order on relevance: I asked whether you have any retraining programs in place to look after the workers when they lose their jobs. Could the minister answer that question about retraining for workers.

Photo of Chris EvansChris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | | Hansard source

Mr President, on the point of order: I do not know what Senator Boswell’s point of order was. I do not think he attempted to make one and he did not claim to make one. What he sought to do was reask his question. Again, this is an abuse of the points-of-order process. I ask you, Mr President, if senators do not attempt to make a point of order, to sit them down, if you would, because it was just used as a further supplementary question.

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order! Senator Carr, I draw your attention to the fact that there are eight seconds left and there is a question to be answered.

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | | Hansard source

The government has a comprehensive set of policy responses. We are ensuring that we provide the necessary incentives— (Time expired)