Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Hansard source

Senator, I assume you know, from being in government, that Treasury uses a great many assumptions behind its budget projections. So I could not answer for every single parameter which was assumed, for example, in MYEFO. I can tell you that the MYEFO assumption about the reduced carbon price was made because the Australian dollar was assumed to be at a higher level and therefore, following through, there was an assumption as to a lower Australian dollar carbon price. So I am not sure what your question really goes to—perhaps I am misunderstanding it. Again I say that we did not assume in our modelling any type of policy action, because that is a matter for domestic policy; we assumed, consistent with, I think, what is logical, that you would see action at various times by developed nations and that you would see growth and then decline by developing nations, particularly India and China.