Ian Macfarlane (Groom, Liberal Party, Shadow Minister for Energy and Resources) Share this | Link to this | Hansard source

My question is to the Minister for Resources and Energy and the Minister for Tourism. I refer the minister to his admission that every tonne of carbon dioxide emitted in Australia during the production of liquefied natural gas saves the production of nine tonnes of carbon dioxide when consumed in China for electricity generation. Minister, if the government is serious about lowering global greenhouse gas emissions, why is it condemning the liquefied natural gas industry to a 25 per cent cut in production by refusing to compensate it under the proposed ETS and condemning the world at the same time to a subsequent increase in CO2 emissions?

Martin Ferguson (Batman, Australian Labor Party, Minister for Resources and Energy) Share this | Link to this | Hansard source

I thank the honourable member for the question. The member for Groom has raised a very serious question: the challenge of the Australian government to introduce a balanced Carbon Pollution Reduction Scheme in association with introducing a renewable energy target of 20 per cent by 2020. That is exceptionally important because this government, unlike the previous government, is absolutely committed to a comprehensive response to climate change while maintaining Australian jobs and economic prosperity. The truth of the matter is that, unlike the previous government, we are equal to the task and prepared to take on the hard jobs confronting Australia in the 21st century.

It is for that very reason that the Australian government is engaged in a detailed process of consultation not only with the LNG industry but also with all other industries potentially affected by the Carbon Pollution Reduction Scheme. In handling these challenges, we are committed to putting in place not only an appropriate Carbon Pollution Reduction Scheme but also a portfolio of responses, including the development of a renewable energy source program and improving energy efficiency in Australian industry. The concerns raised by the LNG industry have been listened to by me and by other ministers in response to a genuine green paper process aimed at making sure we put in place a balanced response going to the introduction of a price on carbon, the objective being to reduce Australia’s exposure to carbon emissions.

I simply say to the LNG industry—perhaps this is a lesson for some on the other side on the issue of consultation and taking the Australian community with them—that the Australian government is absolutely committed to providing the internationally competitive investment and regulatory frameworks necessary for the expansion of the LNG industry in Australia. With respect to the future of the LNG industry in Australia, I was pleased to see the announcement by Inpex about a potential $20 billion investment in Darwin in recent weeks. That announcement is not only important for Australia, it is exceptionally important for the future of Northern Australia. The LNG industry is not only part of Australia’s future; it is also part of the global community’s response to climate change. It is also vital for jobs, exports, economic growth, regional development and investment. I simply say to the member for Groom: it is about time that the opposition understood that in the 21st century we have to take on the modern challenges. That is about maintaining jobs and prosperity in Australia and also acting in a decisive way on the climate change front.