Barnaby Joyce (Queensland, National Party) Share this | Link to this | Hansard source

My question is to the Minister for Climate Change and Water, Senator the Hon. Penny Wong. Will the minister guarantee that petrol prices will not rise as a result of the government’s emissions-trading policies?

Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Link to this | Hansard source

I thank Senator Joyce for the question. I can guarantee that this government will do what we said we would do before the election, which is to take decisive action to tackle climate change. I also remind Senator Joyce that the former government in fact committed to an ETS. The former Prime Minister, John Howard, did commit to an emissions-trading scheme. But the thing that I want to emphasise to the chamber is that we know absolutely from the Stern report and from a range of other advisers, including Professor Garnaut, that the cost to the Australian economy and to households of neglecting to act will be significantly greater than the cost of responsible action now. We absolutely know that the cost of inaction and of neglecting to act will be significantly greater than the cost of responsible action now. Australians recognise that tackling climate change will not be painless, but I think the Australian people have a very clear understanding that, as I said, the cost of inaction would be greater than the cost of responsible action now.

Senator Joyce would be aware, as I have said, that the previous government did commit to an emissions-trading scheme. As I recall, we have also heard some comments by the member for Flinders—and I know that Senator Joyce disagrees with him on a range of issues—on the importance of tackling climate change. I want to emphasise, and we emphasised this yesterday, that the government is absolutely aware that the introduction of an emissions-trading scheme is a significant economic policy. It is a significant reform. We will be methodical and careful in our approach to emissions trading. We will undertake modelling, as I have said, within Treasury to assess the best design approach that should be undertaken. I have said very clearly that measures will be developed to assist households, particularly low-income households, to adjust to the impact of carbon prices.

Barnaby Joyce (Queensland, National Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I thank the minister for her answer, but it appears that once more she has failed to rule out that petrol prices will rise. That being the case, can the minister indicate how much extra consumers should expect to pay at the bowser? How can the government claim to be working to drive the price of petrol down when they do not even know what effect their own emissions-trading policy will have?

Penny Wong (SA, Australian Labor Party, Minister for Climate Change and Water) Share this | Link to this | Hansard source

The government has laid out a very clear timetable which involves a significant amount of consultation and careful consideration of the economic impact. As Senator Joyce will probably know, there are a range of design decisions which the government needs to make, which include trajectory and a range of other assistance measures. It is not possible ahead of that consultation and consideration for this detail to be gone into. This is a significant reform, which is why the government is taking a careful and measured approach. We have announced a period of consultation with stakeholders such as industry to be followed by a green paper and then further consultation on the green paper before draft legislation is instituted. We know that the cost of inaction and of neglecting to act will be far greater than the cost of responsible action now. (Time expired)