Greg Combet (Charlton, Australian Labor Party, Minister for Climate Change and Energy Efficiency) Share this | Hansard source

In response to the member for Capricornia's question, scientists have been advising governments for a long period of time that climate change poses significant risks. To Australia the risks are from higher temperatures, changing rainfall patterns, more extreme weather events and rising sea levels. These represent serious economic risks—risks that you should take as serious economic risks. They will have impacts in many different industries across our economy, like agriculture and tourism, and in our society. Faced with that scientific advice, governments have a public policy responsibility to act. That is why this government is putting a price on carbon. The carbon price will create an incentive for the largest emitters of greenhouse gases in our economy to reduce their greenhouse gas emissions, because it will require them to purchase a permit for every tonne of greenhouse gas that they emit. We are doing this not only in an environmentally effective way and an economically responsible way but in a socially fair and just manner. The price impacts will be modest at only a 0.7 per cent increase in the CPI. As the Treasurer and Acting Prime Minister just indicated, the modelling showed that the average electricity price impact will be $3.30 a week per household across the country.

The Leader of the Opposition has previously described the price impact as 'unimaginable'. But the fact of the matter is that state pricing regulators are now confirming the Treasury modelling and they are consistent in the price impacts with that which was suggested by the Treasury modelling—$3.30 a week averaged across households. In South Australia, the average is just under $1.50 a household. The government is assisting households with an extra $10.10 a week through tax cuts, higher family tax benefits and increases in pensions. It is targeted to assist low- and middle-income households. The government is also funding the Australian Competition and Consumer Commission so that it can tackle businesses which try to rip people off with false claims about carbon pricing. Today the ACCC announced a carbon claims hotline to make it easier for people to make complaints. For those listening to the broadcast, it is 1300 303 609. The ACCC, importantly, points out that price increases associated with carbon pricing should be 'truthful and have a reasonable basis'. This is advice that the Leader of the Opposition should take. (Time expired)

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