Jonathon Duniam (Tasmania, Liberal Party, Shadow Minister for Environment, Fisheries and Forestry) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Wong. Can the minister confirm that the government is working on developing a range of tariffs in the form of a carbon border adjustment mechanism?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I'm wondering if this is the next iteration of a scare campaign. I'm asked about tariffs. It's a useful question, and I hope that Senator Farrell will be able to contribute more to the chamber later today on this issue, because, of course, what the government is doing is seeking to reduce tariffs. This was one of the issues, I recollect, that the economic roundtable did discuss. We on this side of the chamber have a view—and I would've hoped it was a similar view—that tariffs are an impost upon consumers. We have a very clear view—

Jonathon Duniam (Tasmania, Liberal Party, Shadow Minister for Environment, Fisheries and Forestry) Share this | Link to this | Hansard source

President, a point of order on direct relevance—I've asked specifically about a particular tariff, not other things the government may or may not be doing. I ask you to draw the minister to the question.

Sue Lines (President) Share this | Link to this | Hansard source

I believe the minister is being relevant, but I'll continue to listen carefully, Senator Duniam.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I think this is fundamentally a net zero question, and you might recall—

Well, of course it is.

Honourable senators interjecting—

Okay, perhaps we should just go back to basics. When you try to reduce emissions in your country, you also have to look at what is happening elsewhere, and, when you have emissions-intensive industries, you obviously have to look at their competitiveness and consider that in terms of your domestic mechanisms. That's the basic economics of it. That has been taken into account in the safeguard mechanism. You might recall that previously the government has consulted with those industries for whom these are issues, and we'll continue, I'm sure, in the context of the setting of the next target, to consult with industries that are affected.

Sue Lines (President) Share this | Link to this | Hansard source

Senator Duniam, first supplementary?

Jonathon Duniam (Tasmania, Liberal Party, Shadow Minister for Environment, Fisheries and Forestry) Share this | Link to this | Hansard source

I think there is a tariff on the way. Minister, will your government categorically rule out imposing any form of tariff on imports like building materials, fertiliser and fuels, which will only drive up the cost of essentials for all Australians?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

I would make the point to those opposite—and I'm conscious that people are interested in this issue—that we on this side think that climate change is real. We on this side think that net zero is an important commitment for our economy. We on this side understand that the global economy is moving to net zero, and we have to compete in such a world.

Michaelia Cash (WA, Liberal Party, Shadow Minister for Foreign Affairs) Share this | Link to this | Hansard source

President, I raise a point of order in relation to direct relevance. There were a number of words that the minister could have referred to—'will', 'your', 'out', 'any', 'of' or 'on'. 'Climate change', though, wasn't one of them, so I would ask you to draw the minister to the question.

Sue Lines (President) Share this | Link to this | Hansard source

Thank you, Senator Cash. Minister Ayres?

Tim Ayres (NSW, Australian Labor Party, Minister for Industry and Innovation) Share this | Link to this | Hansard source

Even a casual listening to—

Sue Lines (President) Share this | Link to this | Hansard source

Senator Ayres, why are you on your feet?

Tim Ayres (NSW, Australian Labor Party, Minister for Industry and Innovation) Share this | Link to this | Hansard source

Apart from stretching—on the point of order, she's clearly being relevant. The question was about carbon border adjustments, and she was directly referring to it.

Sue Lines (President) Share this | Link to this | Hansard source

Thank you, Senator Cash and Senator Ayres. The minister is being relevant, and I will continue to listen to her answers.

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

Perhaps I should start with this proposition: carbon is relevant to climate. If you actually want a policy in relation to climate change and you want to try and reduce the emissions in your economy to net zero, it turns out you actually have to think about carbon emissions. This is part of the sensible economic approach that we are taking to the issue of climate change, and it stands in stark contrast to that of those opposite. (Time expired)

Sue Lines (President) Share this | Link to this | Hansard source

Senator Duniam, second supplementary?

Jonathon Duniam (Tasmania, Liberal Party, Shadow Minister for Environment, Fisheries and Forestry) Share this | Link to this | Hansard source

The Prime Minister has said:

Tariffs … are a form of economic self-harm and a recipe for slower growth and higher inflation.

Given that and given you've also confirmed that the government is pursuing such a tariff, why would Labor seek to impose a carbon border tariff that would ultimately be paid for by all Australian families and businesses?

Penny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

First, again, the senator has misrepresented what I said. Second, unlike you, Senator, we actually believe that it is our responsibility and our mandate from the Australian people to act on climate change. I know that you are still split on the issue of net zero. I know that Senator Cash, as leader in the Senate, defied her own leader to press for an abolition of net zero in their party room. It is quite an extraordinary thing that a member of the leadership group of the alternative government doesn't back her leader.

But we on this side believe that ensuring that we have a sensible economic approach to getting to net zero is the right thing for our economy now and the right thing for our economy in decades to come, and it is a mandate that we have from the Australian people.