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

Thank you very much, Mr Speaker. I go to some trouble to make that point about BlueScope Steel because, as I understand it, some of these things are already being misrepresented and I believe that it is quite wrong to misrepresent to around 1,000 working people and their families the reason that their jobs are under threat. I want to be absolutely clear before this parliament, and I think that every member of this parliament has got an obligation to be absolutely clear with individuals in the community, that this is not a decision related to the government's plans to put a price on carbon.

On the government's plan to put a price on carbon, I would remind the Leader of the Opposition that both the government and the opposition are committed to a minus-five per cent reduction in carbon pollution by 2020. The question therefore presents that if you are going to reduce carbon pollution by five per cent by 2020, do you start soon and do it in the easiest possible way or do you start late with dramatic dislocation to the economy? Well, I am for starting soon. The Leader of the Opposition is for starting late, with dramatic dislocation. I do not believe that the Leader of the Opposition's plan would be good for Australian industries and businesses because of that dramatic dislocation.

Number 2, the question that presents is: do you do it in the most efficient and cheapest possible way, or do you do it in the most costly and cumbersome way? I am for doing it in the cheapest possible way. The Leader of the Opposition is for doing it in the most costly and cumbersome way. And of course in assessing that putting a price on carbon is the cheapest possible way to do it, we have relied on the advice of economists. I know that that is discounted by members opposite, but I would refer them, for example, if they are looking for sources of economic advice, to the words of the IMF where they have said:

We support the proposed introduction of a carbon price as part of a transition to a permits trading system to mitigate greenhouse gas emissions.

They went on to say in a facts sheet:

Broad based taxes on greenhouse gas emissions are the most natural policy instrument as they exploit all possible behavioural responses for reducing emissions throughout the economy …

The shared minus five per cent target: we want to do it in the most efficient way. We want to do it in the way that is therefore best for Australian industries, businesses and employment. It is the Leader of the Opposition that is committed to a scheme of dislocation and job losses.

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