Deborah O'Neill (Robertson, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Climate Change and Energy Efficiency. Is the minister aware of any recent developments relating to the introduction of a carbon price into the Australian economy? Why is it important to the business community and households that the government takes action on climate change, and how is the government preparing to face challenges to achieving this policy certainty?

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

I thank the member for Robertson for her question. The government is approaching the challenge of climate change by concentrating on three areas in particular: firstly, renewable energy; secondly, the improvement of energy efficiency in businesses and households; and, thirdly, working on the introduction of a carbon price. Of course, the introduction of a carbon price is a vital economic reform for business in this country because, without a carbon price, Australia’s businesses and investors will continue to operate in an environment where there is considerable uncertainty when they are analysing alternative investment proposals.

Earlier today, nine of Australia’s leading superannuation fund and funds management organisations announced plans to form a new industry panel that will be dedicated to pursuing certainty around carbon pricing. The panel consists of CEOs from some very large financial institutions, including AMP Capital Investors, BT Investment Management, AustralianSuper and a number of others. Together these nine organisations are responsible for about $350 billion in funds under management and are extremely significant investors in the Australian equities markets. Earlier today, Mr Mark Lazberger, CEO of Colonial First State Global Asset Management, had this to say about the issue of a carbon price:

The current uncertainty surrounding carbon pricing hinders investment decision making across both emissions intensive and low emissions assets. To allow sensible long term investment decisions, the framework for pricing emissions must be resolved.

In other words, what Mr Lazberger is referring to, along with his colleagues on this panel, is that investors need to know what the carbon price is and how it will be constructed so that they can properly assess competing investment proposals not only in emissions intensive industries—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The member for Tangney should not take the presence of the minister at the dispatch box as a catalyst for him ignoring standing order 65(b). He is warned.

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

He seems to get quite excited whenever—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The minister should ignore interjections and interjectors.

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

What Mr Lazberger is saying on behalf of this investors group is that the issue of a carbon price needs resolution so that proper analysis of competing investment proposals can be carried out by major investors in our economy. A lack of a carbon price leads to investment in Australia becoming more expensive than it need be because risk has to be factored in. Households, of course, can also benefit significantly from measures the government is taking on climate change and, specifically, in the area of energy efficiency. By improving energy efficiency, families will be able to save money on their bills and achieve an outcome on the environment.

Following the release earlier this month of the report of the Prime Minister’s task group on energy efficiency, the government will now engage with key stakeholders, including state and territory governments, to discuss how to take the next step forward to drive significant improvements in energy efficiency in our electricity systems, including at the domestic level. The fact is that there is one large obstacle here to making these important reforms and, in particular, on the issue of a carbon price. It is represented by the Leader of the Opposition. We have come to a position where the Leader of the Liberal Party, the Leader of the Opposition, is standing in the way of a critical economic reform that is supported by the business community, supported by major investors, and the Leader of the Opposition—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The member for Mackellar on a point of order. Has the minister concluded?

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

Yes.