Melissa Parke (Fremantle, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. How is the government consulting with business and other important sections of the community on the implementation of a price on carbon?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I thank the member for Fremantle for that question because there is extensive consultation with the business community on this very important economic reform.

There are only two certainties here: all nations will have to act and the longer we wait the much tougher the transition will be, which is why the government is determined to act and to work in a consultative way, particularly with the business community. It is why we have commissioned new, updated analysis from Ross Garnaut, it is why we have commissioned the Productivity Commission and it is why the Treasury is doing new modelling. We have a number of forums where we are consulting with the business community.

I want to make this point because I say to all those in the business community, and there is a very broad coalition that is supporting this essential reform: do not be intimidated by some of the irresponsible elements of the community. This is too important a reform for the future of our economy for those that understand the importance of this to our future prosperity, to jobs for our kids and our grandkids. Stay involved with the process and do not be intimidated by some of the shouting and yelling that we are seeing from the Tea Party fringe elements that are out there in this debate. We do need a debate but we need a debate that is based on fact. One of the most important facts was outlined recently by Jac Nasser of BHP Billiton. He said:

Economies that defer action are likely to face higher long-term costs, as global investment is redirected to early movers. As one of the most carbon-intense economies, if Australia acts strongly to reduce its carbon footprint, its emissions-intensive sectors are likely to maintain or improve their competitiveness in a low-emissions world.

That sums up the economic case for this fundamental reform. It is one that is essential for the future of the nation; it is right for the country, it is right for the economy and we should not be deterred by extreme elements in the Liberal and National parties.