Bernie Ripoll (Oxley, Australian Labor Party) Share this | Hansard source

This week the US car giant General Motors, the world’s largest car manufacturer, went into voluntary administration and is bankrupt. In the process, thousands of jobs will disappear and communities will suffer, just as they have done over the past 20 years when GM were making record profits and shoving jobs overseas. Many will be shocked and will ask the question: how could this have happened? While hindsight is a wonderful thing, it was not needed in the case of GM and other monoliths that refused to change and adapt. The same could be said about economies that refuse to accept climate change and its consequence in the long term. But reward will come to those that adapt early and create new industries and carbon economies into the future. Yes, there is a cost but it is an inevitable cost that is best dealt with in a planned and measured way, a cost that can be mitigated through a strategic plan.

None of us know what the world will look like in 50 years, but what we do know is that it will not look like it does today. In 50 years time when the world and global economies are fully integrated into carbon economies, with alternative energy use and pollution reduction, people will look back at this period in our history and question why we argued at all. Our children as future leaders will ask why, in the face of all that we know must be done, we did not act more quickly and why we debated the minor detail when the course of action was always clear. Some will say that, had we acted more quickly, others would have followed sooner. Other economies and nations not as courageous or without the foresight—just like GM—will lament why we took so long to act as global leaders. It has often been a historic fact that great change comes from humble beginnings—perhaps as humble as a small nation such as Australia taking first steps.

On any difficult matter, leadership is hard. History teaches us that lesson repeatedly. Leadership also teaches us that many will say no and stand in the way. There are those that are frightened into inaction or blinded by ology. There are those who just sit and wait. Maybe this sounds all too familiar for people in this chamber. The opportunity to take action on climate change, carbon pollution and the new carbon economy is now—and that is what this government is doing. In contrast, the Liberal and National parties’ position of the past is destroyed by the reality that they cannot even agree amongst themselves. But, sadly, the Liberal and National parties have only one position, and that is to oppose completely and to delay indefinitely.

The Australian people at the last election made clear their view and expectation for the parliament, and as a government we will uphold that commitment on climate change. As Treasury modelling and Professor Garnaut’s review have shown, the costs of inaction are far greater than the costs of responsible action today. The Carbon Pollution Reduction Scheme is to start in 2011 and for the first time it will put a cost on carbon pollution, which will encourage major polluting businesses to lower their emissions. It will also encourage them to modernise, to be more efficient and to be more competitive. We will use the funds raised to assist households in making sure that Australian families do not unjustifiably carry the cost of climate change.

We will build on our investment in renewable energy to create the low-pollution jobs of the future in solar energy and on wind farms and jobs using new technologies like clean coal and geothermal energy. Taking action on climate change will see the renewable energy sector grow to 30 times its current size by 2050, creating thousands of new jobs. Schemes already exist in 27 European countries. In the United States and Canada 28 states and provinces are introducing emissions trading to reduce carbon pollution, as is New Zealand. US President Obama has committed to establishing a cap-and-trade system to reduce carbon emissions with targets for reduce those emissions. We are not alone but we still need to lead.

This government will not leave workers out in the cold. We will provide substantial assistance to support the jobs of today into the future. We will allocate free permits to firms engaged in emissions-intensive trade-exposed activities. The $3.9 billion electricity sector adjustment schemes will also help, and the $2.75 billion Climate Change Action Fund will also work to minimise the impact. The reality is that Australian business is doing it tough, and we will support them with the new global recession buffer and a one-year fixed period will also be introduced. Given the financial crisis, these targets are appropriate and responsible and they get the balance right. We have the right balance. We will deliver crucial reform but we will also mitigate the worst impacts on the community. We will protect our economy and jobs during this crisis and we will help Australians to transition to a low-pollution economy that can create jobs into the future.

In conclusion, economic circumstances are constantly changing. They have changed in the past and they will do so in the future. But fear of change should not paralyse us from action. The Carbon Pollution Reduction Scheme is a critical economic reform to protect our economy now and to position Australia into the future.

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