Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Hansard source

The government will set a cap on the total amount of carbon pollution allowed in the economy, which will be covered by particular sectors, and then issue permits up to an annual cap. The industries that generate carbon pollution will need to acquire a permit for every tonne of greenhouse gas that they emit. The quantity of carbon pollution from each firm will be monitored and verified. Liable firms will surrender a permit for every tonne of carbon pollution each year. Firms will compete in a market to purchase the permits they need and, of course, this will be the means by which a carbon price is created. Certain categories of firms might receive some free permits as a transitional assistance measure.

The government has made its commitments clear, as I have indicated to Senator Williams, in a green paper, and I urge him to actually read it. Every cent of the money that is raised as a result of this scheme will be used to help Australians adjust to the scheme and invest in new clean-energy options. Fuel taxes will be cut on a cent-for-cent basis to offset the initial price impact. For pensioners, carers and seniors, allowance benefits will be increased above an automatic indexation. Low-income households will be assisted through a tax and payment scheme. Assistance will be provided to middle-income households for family assistance, which will be reviewed on an annual basis. Additional support will be provided through energy efficient measures and consumer information.

A Climate Change Action Fund will be established to assist business transition to a cleaner economy. It will be available to assist industries to provide additional investment to ensure that new technologies are brought on stream much more quickly than they otherwise would be. (Time expired)