Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Hansard source

It comes as a great shock to me that, on the occasion of the visit of the British Labour government’s adviser on the economics of these matters, Sir Nicholas Stern, the Labor Party should ask a question about climate change! But can I respond to the question by noting that it is this government’s initiative in establishing a highly credentialed task force to examine emissions trading that prompts the question and that, indeed, these are submissions to that task force that we have invited from industry on the question of what sort of emissions trading scheme might be appropriate or on the shape of an emissions trading scheme in which Australia could participate. One of the issues, obviously, that that task force will have to consider in its report is whether you could establish, for example, a domestic or regional emissions trading scheme based around Australia, satisfactorily and effectively, that would have an abating effect on greenhouse gas emissions, or whether that simply would not work and you would have to develop a truly international scheme if you were to achieve net reductions in emissions.

One of the concerns the government has always had—and one of the reasons we were unwilling to ratify the Kyoto protocol—is that there can be absolutely no net gain either to Australia or to the international environment if all that domestic policy does is drive substantial greenhouse gas emitting industries offshore, to countries that are not part of any sort of international structure and, indeed, with much lower emissions trading or general environmental standards. You might well have a net increase in emissions but the loss of very valuable jobs and export income in this country. So it is a very serious issue. It is not a matter for grandstanding and playing to the audience. As a responsible national government—and I think Labor should understand this, having been in government and being a party that wishes to be in office—you do have to take account of the overall national interest and have an eye to what is achievable.

An emissions trading scheme is one way in which you could put a price on carbon and, therefore, hopefully, have some abatement effect on emissions. Another way is a carbon tax. The government has indicated its preference, if there is to be any move, for emissions trading over a tax, but there are many learned people who think a tax is a viable option. But we have always had concerns about the extent to which you can move unilaterally without doing great damage to the Australian economy and achieve nothing in terms of any international effort to contain greenhouse gas emissions.

So we look forward very much to the report of the task force to which Senator Evans referred. It will report back to the government by 31 May. We are delighted that industry has responded positively to it and is putting its ideas forward. We will constructively and sensibly consider those ideas and report to the Australian people our views on this matter once we have that report.