John Faulkner (NSW, Australian Labor Party) Share this | Hansard source

I do not support the motion put before the chamber by Senator Cormann. I really do believe that the opposition is becoming very desperate on this issue. Clearly they are becoming desperate because, as we all know, 1 July is just 10 days away and then there will be a price on carbon. In 10 days Australia will take serious and comprehensive action in the global effort to tackle climate change. And when the sky does not fall in, the earth keeps spinning and the sun comes up in the morning, all of which will happen after 1 July, the outlandish claims being made by the opposition, their desperate fear mongering, the relentless negativity that is the hallmark of this opposition, will amount to nothing. It will be a total fizzer. It will be exposed for the political sham it is.

The Australian government, in the national interest, as a responsible government and a responsible global citizen, has taken decisive action to minimise the impact of climate change and has taken decisive action to intensify investment in clean energy. As I have said before in this chamber, acting in the national interest is not just about telling people what they want to hear. It is not just about belittling debate on important issues with platitudes and abuse—the hallmark of those on the other side of this chamber. It is to speak and act, conscious of the need to ensure a vibrant, strong and competitive future for our nation, which will take the courage necessary to undertake reform. Of course that can be unpopular and of course that means that governments need to make controversial decisions. So in just a few days, for the first time in our history Australia will have a price on carbon. This has been a long and bitter process. It has been a difficult debate but I believe it is absolutely integral to our national interest.

The planet is warming and we must take action. Putting a price on carbon will ensure that our nation's economic and environmental interests remain secure. We live on the driest continent on earth. We live in a place renowned for droughts and flooding rains. Putting a price on carbon is the first step to significantly address the impact of climate change.

I say, as I have said consistently for two decades in debates about this issue in this parliament, the science is in. Reports from the IPCC, from our own scientists at the CSIRO and from those at the Bureau of Meteorology show that the climate is warming, that seas are rising, that coastlines are shrinking and that weather patterns are changing. This will continue to happen as a result of greenhouse gas emissions from human activity. If greenhouse gas emissions continue to grow unabated, the problem will get worse. The carbon price will cut carbon pollution and drive investment in clean energy technologies and infrastructure like solar, gas, and wind. It will help build a cleaner energy future, which is what future generations of Australians deserve. This is not just about us. It is not just about those who happen to sit in this Senate chamber in the year 2012; it is about all of those who come after us. It is a heavy responsibility, I believe, on this generation of Australian parliamentarians, and I am of the view that it is critically important that the Australian government meets its responsibility.

The Australian government has worked hard to ensure that Australians are not dramatically impacted by the carbon price. Overall, the carbon price will see prices rise by less than one per cent. The big polluters will pay the carbon price, not ordinary Australians. The carbon price will be paid by fewer than 500 of our biggest polluters. Millions of Australians will in fact pay less tax. Tax cuts and increased payments are targeted at those who need it most. The government will make sure that pensioners, low- and middle-income earners and families doing it tough, the most disadvantaged people in our community, are looked after. Nine out of 10 households will get a combination of tax cuts and increased payments. Almost six million households will get tax cuts or increases in payments that cover the entire average price impact. Over one million Australians will no longer need to lodge a tax return. And the government will review the adequacy of assistance each year and will increase it further, if that is required.

In relation to the issue of assistance to industry, which is so often raised in this debate, I would say that assistance provided to industry maintains the incentive for companies to reduce the level of their carbon emissions, partly because they will compete with other companies looking to cut costs by cutting pollution and partly because the assistance will decline over time. Funding and grants will be provided to businesses seeking to invest in renewable energy, in low emissions technology and in energy efficient research and technology. The Jobs and Competitiveness Program will provide assistance to emissions intensive trade exposed industries to support jobs and reduce the risk of companies moving overseas and continuing to pollute.

This ongoing program will provide $9.2 billion in assistance over the first three years of the scheme. The assistance is specifically targeted at those companies that produce a significant amount of carbon pollution but are constrained in their capacity to pass through costs in global markets—industries like steel, aluminium, cement and zinc manufacturing and the like. The purpose of the carbon price is to make the economy grow stronger but with less carbon pollution, with a smaller amount of carbon being emitted into the atmosphere.

Climate change is a global problem. Again, contrary to what you hear so often in this debate, the rest of the world is acting on this issue. It is not true to say that Australia is going at it alone. We are not going at it alone: 89 other countries, representing 80 per cent of global emissions and 90 per cent of the world's economy, have already pledged to take action on climate change.

There is analysis from the Department of Climate Change and Energy Efficiency which shows that from 2013 there will be more than 50 national or subnational, if you like, emissions trading schemes in place around the world. That is 33 countries with national emissions trading schemes, including Switzerland, the European Union's 27 member countries, Norway, Iceland and Lichtenstein. There will be another 18 subnational jurisdictions with emissions trading schemes, including: the US states of California and New York, the Canadian province of Quebec and, I am pleased to say, seven provinces and cities in China. These schemes will cover a combined population of more than 850 million people. Other countries such as South Korea, Brazil, Turkey, Chile, South Africa and Mexico have also strongly signalled their intention to develop emissions trading schemes.

Globally, more money is now invested in new renewable power than in conventional high-pollution generation. Just think of that; think of the difference we have seen over recent years. China is now the world's largest manufacturer of both solar panels and wind turbines, and it is a world leader now in renewable energy research. There is an old expression which my friends from the National Party—who used to call themselves the Country Party—always liked to quote: 'You make hay while the sun shines'.