Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Hansard source

I am asked how we will deliver a price on carbon; let me answer that question. We will deliver a price on carbon in the most efficient way. We will deliver a price on carbon, respecting the science that is leading the way and telling us that our climate is changing, that that change is caused by carbon pollution and human activity and that we need to act to cut carbon pollution.

The plan I will announce on Sunday will be a plan to cut 160 million tonnes of carbon pollution by 2020. That is a very large change in the way that the nation generates carbon pollution. It is the equivalent to taking millions and millions of cars off the road, and that is the aim of pricing carbon: to cut carbon pollution. The plan that we will announce on Sunday will be a plan that protects Australian jobs and gives us access to the clean energy jobs of the future.

I am pleased to report to the House that, this month, we have seen in our nation 60,000 new jobs created. That is fantastic; we want people to have the benefits and dignity of work. As we go about pricing carbon, we will protect Australian jobs and get access to the clean energy jobs of the future. Around 1.6 million extra jobs will be created by 2020. We will price carbon in an efficient way, which is through an emissions trading scheme. We will reach that through a limited period of a fixed price and then reach an emissions trading scheme. This is the system of pricing carbon that was supported by former Prime Minister Howard. It is the system for pricing carbon that was supported by the member for Wentworth. It is the system for pricing carbon that economists recommend as the most efficient way of pricing carbon.

Because we are a Labor government we will ensure, as we price carbon, that we assist Australian families, and particularly that we assist those families most in need. Fifty per cent of all of the revenue raised will go to Australian households; nine out of 10 households will see tax cuts and increases in payments. We are talking about pensioners, family payments and tax cuts for working Australians. Three million Australian house­holds will see a 20 per cent buffer. That means that the net amount of new money provided to them will be 20 per cent more than the expected impact of the carbon price on the goods they buy. They can come out better off as a result of our pricing carbon. Indeed, across the nine out of 10 households that we will assist, we will be providing information to people about how to cut their energy use. If people take some simple steps to cut their energy use, they too can pocket the tax cuts, or pension increases or family payment increases provided to them.

This is the right plan for the nation's future. It is a plan to create a clean energy future, tackle carbon pollution, get big polluters to pay, protect Australian jobs and assist Australian households. It is the right way to price carbon, driven by our Labor values, and all of the details will be available on Sunday.

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