Christine Milne (Tasmania, Australian Greens) Share this | Hansard source

Before I go back to the subject of the amendment, which is to move for 100 per cent auctioning of permits, I would point out that Australia is the 15th largest emitter out of the more than 180 countries in the world. If the argument is that Australia should not do anything because we are, if you like, in relative terms a small emitter then what of all those other countries below us who emit even less than we do? Are you saying that we should not have to do anything even though all those countries emit even less than us? It is an illogical position.

I come back to the issue of 100 per cent auctioning. Senator Macdonald asked, ‘Wouldn’t 100 per cent auctioning put all these businesses out of business?’ I would draw his attention to the Garnaut report on emissions trading. I personally have not done the modelling, but the Garnaut review, in conjunction with Treasury, did do the modelling and the assessment. It was the Garnaut review’s conclusion that there are no identifiable circumstances that would justify the free allocation of permits. There is a whole section from page 331 onwards that explains why that is the case. He goes on to point out all of the problems which we now have because we did not go down that road—that is, essentially people coming along with no rationale and it being a political game as to who gets what free permits. Any sense of a principled approach has been lost. That is why we should go back to what Professor Garnaut recommended.

I ask the minister: what is the government’s rationale for free permits, since there was no justifiable case for them according to Professor Garnaut? I did ask this question first up but I did not get an answer other than that it was government policy, or a choice the government had made. I am interested to know what the government’s rationale is for going with a mix of free permits and auctioning. Why not 100 per cent auctioning? What is the rationale for free permits?