Stewart McArthur (Corangamite, Liberal Party) Share this | Hansard source

I was referring to greenhouse emissions. The automotive sector is struggling to adjust to reductions in industry protection with the reduction of tariff levels. It is appropriate to raise the potential impact of the suggested radical new greenhouse taxes on the automotive sector. The National Greenhouse Gas Inventory 2004 reports that the transport sector contributes 13.5 per cent of Australia’s net emissions, and transport emissions are one of the strongest sources of emissions growth in Australia. Transport emissions were 24 per cent higher in 2004 than in 1990, and are increasing by 1.5 per cent annually. If the climate change radicals in the Labor Party want to address emissions and want to introduce emissions trading schemes, which effectively represent a tax on industry, then the transport industry must logically be one of the sectors targeted. The unilateral imposition of emissions trading in Australia would put domestic industries and manufactures at a disadvantage.

The approach of Labor and the unions to the automotive industry raises some questions. If reductions in tariff protection can have an impact on the profitability of the automotive sector, then what would be the impact of the new emissions taxes on the sector? How would the industry cope with higher energy costs raising the price of manufacturing inputs resulting from emissions trading and higher mandatory renewable energy targets? What impact would that have on the profitability of Ford in Geelong and other manufacturers in Victoria and South Australia?

Returning specifically to the amendments introduced in this bill, the purpose of the bill is to amend the ACIS Administration Act 1999 to clarify the Commonwealth’s powers to issue an unearned credit liability in circumstances where the ACIS participants have received credits from the government to which they are not entitled. I understand that the need for this amendment has arisen as a result of a recent decision of the Administrative Appeals Tribunal. The tribunal’s finding limited the Commonwealth’s ability to issue unearned credit liability notices to very specific circumstances as under the act. This is a serious matter. Under the ACIS program, credits are paid in advance and audited after to ensure the payments are eligible. As a result of the tribunal’s finding there is a risk that ACIS credits could be paid to automotive industry firms without a guarantee that the payments could be recovered later if the audit found that the firm was not eligible for the payments. This circumstance is contrary to the understanding reached between the industry and government when the scheme was established.

Unless these amendments are made to the act, the government might need to consider an alternative approach to administration of the ACIS which would see claims for credit fully audited prior to the payment of credits, resulting in untimely delays that would be unacceptable to the industry members eligible for credits. These amendments would assist the smooth and efficient administration of this important industry program.

I am pleased to voice my support for the bill in supporting a more competitive and sustainable automotive sector in Australia. I commend the bill and I commend the sentiments of the ACIS program. I put it on the record that I am delighted with the dramatic change that has taken place in the automotive industry. They are now competitive. They are now efficient. I have been an advocate of lower tariffs and the lower tariff regime has brought about this set of circumstances.

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