Nick Xenophon (SA, Independent) Share this | Hansard source

I am grateful for Senator Milne's contribution and also for her intervention. She has taken a keen interest in trying to get a resolution to this carbon emissions matter. I agree with the sentiments of what she is saying. If this amendment is lost—it is not a criticism of the government in any way—I worry about what remedy there is if there is an unsatisfactory solution. That is a genuine question. If the amendment is lost, what recourse can LMS, and other entities that have been doing good work on greenhouse gas abatement over many years, have? What are they left with? I accept from the minister that the negotiations are proceeding with goodwill but I am concerned that, in the absence of a legislative framework, these entities are vulnerable. They have done the right thing.

It is worth reflecting on recommendation No.1 of the Senate Environment and Communications Legislation Committee into this Carbon Farming Initiative legislation. Paragraph 2.36 states very clearly:

The committee recommends the government consider options to ensure there are no perverse incentives to cease existing abatement projects, and encourage first movers to undertake further abatement or sequestration activities under the Carbon Farming Initiative.

The devil is in the detail. If a formula is not set by legislation, which is my preferred outcome and that of my co-sponsor, my colleague Senator Birmingham—we moved this jointly, with Senator Birmingham doing so on behalf of the opposition—then we will have some difficulty. It is regrettable that it has had to come to this, that an amendment had to be introduced, but Senator Milne took a very active and laudable role in trying to deal with this matter and that was most welcome. I know this sector is very grateful for Senator Milne's interest and intervention but it is still not quite resolved, and that makes me very nervous. That is why it is important to proceed with this amendment.

If this amendment is defeated—it appears the numbers are not here to pass it—what recourse will there be if there is a stumbling block in negotiations? Secondly, as I understand it, there are some figures that are toing and froing on baselines. I know that negotiations have been taking place with goodwill on the part of the department and the minister's office and the industry sector, but what safeguards are there if there is a breakdown in negotiations? Are we back to square one and back to the uncertainty? These are businesses that need to look at their financing or refinancing, and the uncertaity would be a significant factor in their long-term commercial survival. Despite the fact that I accept everyone's goodwill on this issue, I wonder how we deal with that conundrum,?