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

For a brief period they did—thank you, Senator Wong—but they walked away from it. But this is still good policy. Senator Wong admires me for my loyalty and she accuses me of my loyalty to Danny Price of Frontier Economics. But I am loyal to good public policy, and I think it is important that we put this in perspective. In terms of the breadth and magnitude of economic effects, this scheme is arguably the most significant policy change in Australia's history, and as such there is a substantial onus on the government to demonstrate that, whatever policy is introduced, it is the best that can be developed. I believe we have not done that in relation to this scheme. If we look at the distortionary effects of such a scheme and at the impact on taxes then I think we will see a significant flow-on effect on the economy which will be negative.

Let us look at what the Obama administration proposed at the beginning of this year: having a clean energy standard. That is consistent with the Frontier scheme. That is consistent with a more efficient approach to achieving a better outcome. That is why I would urge my colleagues in the coalition to at least consider this—if not now, some other time. The fact is that the direct action scheme will not cut it. The direct action scheme will not provide the long-term benefits and a much more efficient way of dealing with this policy problem. But, again, I make it clear that I move these amendments against the backdrop of ensuring that the Australian people have a say before any such scheme is implemented.