Simon Birmingham (SA, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Climate Change and Water, Senator Carr. Will the minister guarantee that all of the additional revenue earned by the government through the proposed emissions trading scheme will be returned to consumers, households and working families to help them meet the higher costs that will be associated with Labor’s emissions trading regime?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

Thank you, Senator Birmingham. Emissions trading will drive the most significant economic transformation in Australia since the trade liberalisation of the 1980s. As I understand, a policy brief has been released which refers to revenue which will result from emissions trading. The whole government is interested in all contributions to the discussions about emissions trading, but it would be premature to speculate about revenue from emissions trading. This will depend on a range of inputs, including Treasury modelling, advice from the Garnaut review and detailed design decisions following the government’s green paper to be released in July. The government has committed to measures to address the impacts of carbon price on households, particularly low-income households. We have also committed to addressing competitive challenges associated with emissions-intensive, trade-exposed industries and are dealing with other strongly affected industries. The government is taking a very careful approach to designing the emissions trading scheme and will be consulting stakeholders exclusively.

Simon Birmingham (SA, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I note the minister seems totally unaware of estimates that emissions trading could generate up to $20 billion in additional revenue for the new government. Even by the minister’s standards, the lack of detail there was very poor. But will the minister provide a guarantee that no individual consumer will be worse off under such an emissions trading regime?

Kim Carr (Victoria, Australian Labor Party, Minister for Innovation, Industry, Science and Research) Share this | Link to this | Hansard source

As I indicated in my primary answer, it would be premature to speculate about revenue from emissions trading. That will depend upon a range of inputs, and there will be a range of factors affecting likely revenue from any scheme. Senators would be only too well aware of the enormous cost to this society and to this economy if we do nothing about climate change. The government’s approach is to move quickly but carefully to ensure that Australia is best placed to build a society and economy able to cope with the effects of climate change. I am advised that Professor Ross Garnaut will release a discussion paper on emissions trading shortly. (Time expired)