Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Hansard source

I thank the Leader of the Opposition for his question, because it goes to the future of the Carbon Pollution Reduction Scheme and in particular to the provisions which are contained within that scheme to get the balance right between the economy, its strength in the long term, and jobs—to reduce carbon pollution in Australia in order to act effectively on climate change. The government’s guiding principle through-out the debate on emissions trading and climate change more generally is that, because Australia is the hottest and the driest continent on earth, the Australian economy and jobs will be hit hardest and earliest among all countries in the world through climate change; therefore, the government has resolved that it is much better for Australia to act in the manner which we have outlined in order to reduce the impact on jobs over time as well as acting effectively nationally and in concert with partners around the world on this matter as well.

The government’s core argument is—and it goes to the question of Xstrata as well as the emissions intensive trade exposed sector of the economy—that the economic costs of inaction on climate change are far greater than the economic costs of action. This has been reflected in Treasury modelling that we released in October 2008, which indicated that the long-term costs of inaction would be 15 per cent higher than if action were taken earlier on this.

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