Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source

The good senator did anticipate my first response to that, which is that the extent of emission reduction does depend on the price as well as on other factors, including how industry responds and how the economy responds to the challenge of abatement. It is the case that the level of emissions reduction does depend, in large part, on the price. Unsurprisingly, notwithstanding the question from the senator, I am not going to be announcing aspects of a package that is obviously still being worked through by the government and by the members of parliament who do care about this issue. I am simply not going to go through a hypothetical analysis, as I am being invited to.

It is clear, notwithstanding the opposition of the opposition, that placing a price on carbon is the most effective way to reduce emissions. It is the cheapest way to reduce emissions. That is why this government tried on a number of previous occasions to get a price on carbon through the Senate. That is why the former Prime Minister, Mr Howard, arrived at a position that Australia should put a price on carbon.