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

I will just speak briefly to the amendments. I thank the minister for that clarification. The amendment in clause (39) says, as I indicated, that the minister can at any time vary the transitional assistance in response to the changes that foreign competitors might make and that no notice needs to be given. The amendment to clause (45) relates to carbon productivity. Essentially, as we have it at the moment, if the energy-intensive, trade-exposed industries receive permits on the basis of trend carbon efficiency improvements they will be able to sell their cost-effective emissions abatement that goes beyond trend carbon efficiency and make a profit.

We do not believe the 1.3 per cent that is being proposed is adequate. That is why we are moving here to say that any regulation which prescribes a carbon productivity contribution that is to apply to an energy-intensive trade-exposed activity must not prescribe a contribution rate that is less than four per cent per financial year. So we are essentially saying that 1.3 does not give us comfort that these companies will not make windfall gains by being able to sell their cost-effective emission abatement beyond trend efficiency. So we would like to see that addressed.

The next amendment goes to a review period. We are saying here that the Productivity Commission must review and report to the minister on the operation of the energy-intensive trade-exposed assistance program and it must be a three-year period from the commencement of the scheme and at each successive three-year period. And the last amendment takes out the five-year notice for changes to ET compensation.