Senate debates
Tuesday, 8 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
10:33 am
Nick Xenophon (SA, Independent) Share this | Hansard source
Can I just indicate that the context of this assistance to industry needs to be considered in relation to the overall scheme of these amendments; that is, for a higher cut, a cut of at least 10 per cent, by 2020 compared to what the government is proposing. I note that Senator Milne did point out that you could aim for a higher amount in terms of the structure of the scheme, but I do not think the government is committing necessarily to anything other than a minimum of five per cent.
But the issue has to be this: it is clear that if you take an intensity based approach where you have less revenue churn, you have less recycling and fewer distorting effects in terms of the tax interaction effect you will get a better economic outcome and be able to achieve a deeper environmental one. The whole idea of this particular amendment—on the face of it one could ask why give coal powered stations this assistance?—is that it is a transition to ensure that you have that investment certainty and you have a situation in place where they will have to achieve those deeper cuts, but you allow for that transition. And by setting it I believe you will be encouraging investment in cleaner energy low-emission technologies by virtue of this scheme more so than by the government scheme. I do not want to get bogged down in relation to that but I just want my colleagues and those who are listening to understand that the intent of this amendment, in conjunction with all the other amendments that are part of the Frontier scheme, is to ensure deeper cuts at a cheaper price, which I think is essential.
But, of course, there is the overarching position that all these amendments should be put to the Australian people at the next election, because I think it is very important that there is a mandate for that. I cannot take it any further than that. I appreciate the constructive comments of my colleagues from the government, the Australian Greens and the opposition. I know there is not the support for it and I am happy to have a vote on it at this time.
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