Senate debates
Monday, 7 November 2011
Bills
Clean Energy Bill 2011, Clean Energy (Consequential Amendments) Bill 2011, Clean Energy (Income Tax Rates Amendments) Bill 2011, Clean Energy (Household Assistance Amendments) Bill 2011, Clean Energy (Tax Laws Amendments) Bill 2011, Clean Energy (Fuel Tax Legislation Amendment) Bill 2011, Clean Energy (Customs Tariff Amendment) Bill 2011, Clean Energy (Excise Tariff Legislation Amendment) Bill 2011, Ozone Protection and Synthetic Greenhouse Gas (Import Levy) Amendment Bill 2011, Ozone Protection and Synthetic Greenhouse Gas (Manufacture Levy) Amendment Bill 2011, Clean Energy (Unit Shortfall Charge — General) Bill 2011, Clean Energy (Unit Issue Charge — Auctions) Bill 2011, Clean Energy (Unit Issue Charge — Fixed Charge) Bill 2011, Clean Energy (International Unit Surrender Charge) Bill 2011, Clean Energy (Charges — Customs) Bill 2011, Clean Energy (Charges — Excise) Bill 2011, Clean Energy Regulator Bill 2011, Climate Change Authority Bill 2011; In Committee
10:53 am
Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source
I think that goes back to the issue I was raising. This all comes down to the way in which companies manage their carbon price exposure. Pre-CPRS, as you said, there was deferred payment. In these arrangements we have the $5.5 billion, we have the Energy Security Council and we have the capacity to offer loans. This is assuming, of course, that the market does not deal with this. I know that the Australian Bankers Association had views on the previous occasion about whether deferred payment was in fact required. I assume the senator, because he has taken an interest in this, would be aware of the views of the financial sector that the market has the capacity to provide instruments to manage this risk without government interfering with the auction mechanism. For that reason, the government put in place the policy parameters that I have outlined to deal with this.
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