Anne Urquhart (Tasmania, Australian Labor Party) Share this | Hansard source

I rise to speak on the motion to take note of the answer given by Minister Wong on the government's clean energy future package. During the debate in this place on the clean energy future package, which I am proud to say passed resoundingly a few weeks ago, we have heard from many government senators highlighting our plan to tackle climate change. Even today at lunch we heard from Crown Prince Frederik on how we need a framework to lower the world's dependence on fossil fuels.

Labor has a plan and one part of that plan is significant assistance to the food processing, metal forging and foundry industries to help with the impact of the carbon price. As the world moves to reduce carbon pollution, improving energy efficiency and reducing pollution will help Australian businesses gain a competitive advantage. Many businesses have already started reducing their carbon pollution, but many have been waiting for greater certainty about the competitive landscape before taking more ambitious steps. The government's plan for a clean energy future will create that certainty.

Under the government's Clean Energy Plan, the carbon pricing mechanism will establish a clear price path into the future for carbon pollution. Just as businesses currently take account of the likely future costs of labour, transport and materials when making their decisions, they will now factor in the cost of carbon pollution when weighing up alternative investment decisions. Greater certainty about carbon pricing will lower business and financial risk. This in turn will make it easier for the corporate sector to give the green light to key business decisions for a clean energy future such as whether to spend funds on cleaning up production facilities, improving energy efficiency or adopting new low-pollution technologies.

Through the Clean Technology Food and Foundries Investment Program, the government will provide grants worth up to $150 million over six years to the food processing industry and up to $50 million over six years to the metal forging and foundry industries. These grants will assist the industries to invest in energy efficient equipment and low-pollution technologies, processes and products.

I would like to highlight a grant to a potato processing plant in Tasmania which will assist that company to upgrade its coal-powered boilers to natural gas. This 2010 election commitment which the Gillard Labor government has delivered upon is an example of what is possible under this food and foundries investment program. The funding from the federal and state Labor governments of $3 million and $1 million respectively, together with the investment from that company of $17 million, will reduce carbon dioxide emissions by 39,000 tonnes a year—the equivalent of taking 8,000 cars off the road—and support hundreds of permanent and seasonal jobs across the north-west coast of Tasmania through cutting the energy bills of this large employer in my region. Farmers, farm contractors and service providers whose jobs and businesses depend on this company's operations will benefit from this upgrade at the plant through greater certainty and lower costs for the factory. The funding will assist this company to replace its high-energy-intensive coal boilers and install gas-fired co-generation capacity at the potato processing plant, thereby removing the need to burn coal in the production of potato chips. While this grant was announced in the 2010 election campaign and is therefore not part of the food and foundries investment program, it is an example of what is possible through the clean energy future package for all businesses in this area. It is a clear example of how the Gillard Labor government will work with the high-power-intensive businesses in the food, metal forging and foundry industries to assist them to remain competitive through switching to low-pollution options by providing grants for energy efficient improvements.

This government is committed to working with industry, committed to working with communities and committed to working with other countries to achieve a clean energy future for our world and future generations. We are committed to working through the challenges and providing support to Australians. Under our plan, the 500 biggest emitters will pay a price on carbon and the money raised will go to support households, to support jobs and to invest in renewable energy. Under the plan of those opposite, households will be slugged, investment certainty will be cast aside and subsidies will be provided to the big emitters. That is their plan until 2020. We all know that they have not the slightest idea what they will do after 2020. It is vital for Australia's prosperity that there is a clear plan for the transition to a clean energy future.