James Bidgood (Dawson, Australian Labor Party) Share this | Hansard source

I rise to speak in support of the Carbon Pollution Reduction Scheme Bill 2009 and related bills. Those opposite could never take the strong and decisive action of the Rudd Labor government because they are weak and divided on this issue and a range of other issues that are important to the future of this nation. The member for Wentworth and the Liberal Party remain divided, and to this day are still debating whether climate change even exists. As for the Nationals in this place, their position on this issue is clear: the leader of the Nationals in the other place thinks it is a good idea to drill for oil in Antarctica—enough said!

I am passionate about jobs, and if we do not act now Australia’s economy will be left behind, meaning we will not create the jobs of the future—the low-pollution, green-collar jobs that will be needed as we go forward. In my electorate of Dawson, Mackay Sugar’s long-planned cogeneration electricity plant is a step closer to being a reality thanks to our government’s commitment to tackling climate change. Mackay Sugar’s cogeneration plant, to be located at Racecourse sugar mill, will use sugarcane bagasse, a waste product from the production of sugar, to produce a plant that could generate up to one-third of Mackay’s electricity needs. These technologies could lead to biofuel capacities and ethanol production. Projects like these are made feasible by our renewable energy targets and the CPRS. This is a $110 million project which has been sitting on the books for over 10 years due to inaction by the other side of this House.

Deferring action now is not an option. The reality is we will face long-term costs that will be around 15 per cent higher if we do not take action now. Treasury modelling released in October 2008 shows that measures created in this bill will see the renewable energy sector grow up to 30 times its current size by 2050, creating thousands of new jobs. That is good news, that is exciting news. Many of the workers in the Bowen Basin coalmines have their homes, their families and their children in my electorate. In my first speech in this House I said that Labor is the miner’s friend—always has been, always will be. We are delivering on that promise by supporting the coal industry towards reducing its carbon emissions. We are doing this because the Rudd Labor government recognise and understand the vital importance of the coal industry. It is our biggest export industry, a major employer and a driver of economic growth for the country.

The decision to delay the CPRS by a year and have a soft-start fixed-permit price of $10 will also assist the coal industry in the Bowen Basin. These changes that I have been pushing for help support jobs in Dawson. We are being pragmatic in our support by providing significant funding for research and development of carbon capture and storage, known as CCS. These are innovative technologies of the future. There is $100 million to accelerate deployment of commercial-scale CCS projects globally through the Australian led Global Carbon Capture and Storage Institute. There is the very significant $2.4 billion in Commonwealth funding for carbon capture and storage that will help leverage $1 billion in industry funding and around $500 million in state government funding.

I believe in a coal industry with a future. I believe that investment will continue to flow into the coal industry. For example, in May of this year there was an announcement from Waratah Coal that a proposed mining project in Alpha will generate 6,000 jobs. That will be worth $7.5 billion. This is an exciting project plan to use Abbot Point coal terminal, located near the town of Bowen in my electorate, to export its coal. This is great news for the people of Dawson. The government has outlined $750 million in transitional assistance, targeted at the mines that are suffering from these higher carbon liabilities. The government will continue to engage with the industry to ensure that this money is targeted in the best way possible. Stakeholders in the industry understand when Waratah Coal’s Peter Lynch said:

I don’t think that the CPRS is going to have enough of an impact to present insurmountable problems.

These sentiments were reiterated by Rio Tinto, for whom it is one of the ‘greatest challenges’ and also one of the greatest ‘opportunities’. There is political will to see this legislation go through this House. This is important legislation for the future of the coal industry. We on this side of the House and I, standing for the people of Dawson, wholeheartedly commend this bill to the House.

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