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

Exactly, and we negotiated the agreement with the opposition that we would enable a supplementary allocation of free permits to ensure all projects received an effective rate of assistance of at least 50 per cent in relation to their production. What this does is ensure that the most emissions intensive—that is, those projects with the highest level of reservoir gas—will be assisted whilst ensuring there are strong incentives for companies to seek opportunities to reduce emissions, such as through the implementation of abatement technologies or developing fewer emissions-intensive gas fields. But for the government’s windfall gains test, the risk of this proposition would be that you would actually be assisting companies for more than their liability. That is not a sensible policy approach. That is not a policy approach supportive of industry. It is a policy approach that reeks of politics rather than sensible policy.

I make the point that we have provided additional assistance to LNG consistent with our policy framework because we believed it was appropriate given the importance of this sector to Australia’s economy and to our exports and because it is true that, in a world where there is a carbon price, this is a cleaner fuel than coal. In fact, it will do better in a world where there is a carbon price. If you were a supporter of LNG, you would support a global carbon price, because that would actually make LNG more comparatively competitive than it is now. But, of course, those opposite want it out but they do not want to include a carbon price.

I make the point—and it is interesting, because I do not often reference him, but Don Voelte has had a lot to say in this debate, and I think even those opposite might have used his words and criticism of me on more than one occasion—that the senators opposite in this place are in fact asking for more than Woodside have publicly declared they can accept. Mr Voelte has urged the parliament to pass the amended CPRS legislation. But I suspect that is not advice that those opposite would take, because they are no longer listening to sensible advice from the business community. They are no longer listening, for example, to the Business Council of Australia, to Origin Energy or to the Australian Industry Group. They are not listening to them anymore. They are listening to some extreme views inside their own party. That is where this debate has now gone.