Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Hansard source

I thank the member for his question, because the report has been received very well. The report is important in terms of the carbon debate. The report shows the importance of concerted action around the globe. And, of course, the report points to the importance of a carbon price. The commission examined climate change policies in seven out of our top 10 trading partners, including the United States and China. It contains two very important messages. Every single country is putting in place a suite of policies to reduce emissions and to transform their economies. This is understood among our trading partners. There is something like 1,000 policies in place across those countries. So it is overwhelmingly clear that global action is taking place. The second point that it made is very, very important. It says that a carbon price is the most important, cost-effective way to cut pollution. The report says:

The consistent finding from this study is that much lower cost abatement could be achieved through broad, explicitly carbon-pricing approaches …

What this report shows is that Australia is not in danger of acting alone. In fact, we are in danger of falling behind. We know, as a result of this report, if we want our businesses to be competitive in the 21st century, we have got to have a clean energy future. Acting on climate change through a carbon price is imperative. That is why business organisations like BCA, AiG and many others are all supporting a market based mechanism. It is why Liberals like the member for Wentworth have supported a market based mechanism. It is why a former Prime Minister, Mr Howard, supported a market based mechanism. It is why Dr Hewson has supported a market based mechanism. It used to be supported as well by the shadow Treasurer.

The other importance of a market based mechanism is that it does supply the revenue which can be used to assist households and industry to make the transition. The government has made it very clear that we will provide generous assistance to make that transition. It shows us the really clear contrast between the approach of the government with a market based price and the policies of those opposite, which are simply policies of subsidies for polluters. What this report makes very clear is how ineffective a policy of subsidies for polluters is.

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