Jenny McAllister (NSW, Australian Labor Party, Assistant Minister for Climate Change and Energy) Share this | Hansard source

Senator Duniam, I was trying to provide a plain example of the circumstances that you described and how that might come about. Ultimately a decision about whether to find a business in breach would be a decision for the regulator, and they would step through a series of processes. However, to date compliance with the safeguard mechanism has been 100 per cent. It's not our expectation that covered facilities or covered entities wish to do anything else but comply. All of the design features of the scheme were designed with close consultation with the regulated community to create circumstances where they can comply, and the cost containment measure is part of that, as are the borrowing arrangements that would allow an entity to borrow some of their future entitlements within a five-year period and also the trading arrangements that would allow them to purchase safeguard credits from other participants in the safeguard mechanism.