Karen McNamara (Dobell, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for the Environment. Will the minister update the House on how the government is reducing emissions without a tax on electricity? Are there any threats to this approach?

Greg Hunt (Flinders, Liberal Party, Minister for the Environment) Share this | Link to this | Hansard source

I am delighted to take this question from the member for Dobell, who raises an issue which was brought with great righteous indignation at the start of question time, but which they seem to have dropped on the other side.

Let me say this: she is a shining example of an effective local member in this House in terms of environmental management. Let me give you the case of Tuggerah Lakes. She came into government with a plan and a pledge to clean up the Tuggerah Lakes. She helped to drive that plan. She helped her local council to put in place the machines that would remove the wrack, and what we have seen is a foreshore which is physically and dramatically, in the real world, cleaned up and which is a great local environmental achievement for which she should be given real credit.

Another thing that is occurring in the member for Dobell's electorate is that the Wyong Shire Council was a successful bidder under the first Emissions Reduction Fund auction. What does that mean? It means that we are seeing them earn money—

Mr Mitchell interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for McEwen is now warned!

Greg Hunt (Flinders, Liberal Party, Minister for the Environment) Share this | Link to this | Hansard source

for reducing emissions—50,000 tonnes of emissions under their first contact. But they are part of a broader Australian success story.

How do you reduce emissions and electricity prices at the same time? Well, the first thing is that you reduce a carbon tax which was failing to do its fundamental job and which was driving up electricity prices. As the ACCC found, the full $550 which we predicted flowed back on average to families around Australia after the carbon tax was repealed. And that was the ACCC that found that—not us.

The second thing is, of course, that the first Emissions Reduction Fund auction was a spectacular success—47 million tonnes, $13.95 per tonne of abatement and approximately one per cent of the more than $1,300 per tonne cost of abatement under Labor's failed scheme. And how do we know it failed? Because they went to the last election pledging to terminate it. Remember that? They pledged to terminate it but they voted to keep it.

Then what do we see in terms of the next auction? Already we have 500 projects registered around the country—

Mr Dreyfus interjecting—

Tony Smith (Speaker) Share this | Link to this | Hansard source

The member for Isaacs! This is your final warning!

Greg Hunt (Flinders, Liberal Party, Minister for the Environment) Share this | Link to this | Hansard source

There are 228 from New South Wales alone. And so the signs are a very good prospect for the next auction.

But we compare that with a system that is working, as opposed to what the ALP wants to do. We know that on their own modelling of their own policy when they were in government that the Treasury found it was likely to cost, for their current targets, $600 billion by 2030. So $600 billion is the cost of their policy. They ought to come clean and reveal that cost, because we are reducing emissions; we are doing it whilst decreasing electricity prices and they want to drive them up. (Time expired)