Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

I have a question for the Minister for Innovation, Industry, Science and Research, Senator Carr. I ask the minister to inform the Senate of what the government is doing to help small and medium-sized business tackle climate change.

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

It is imperative that we do as a country respond to climate change, but it is also imperative that the costs and rewards of moving to a low-carbon economy are shared fairly. We cannot expect any one group to bear the whole burden—whether it is industrial workers, coal regions or small businesses. That is why Senator Pratt’s question is so timely. The government’s proposed carbon pollution reduction scheme actually includes a strong safety net for industries, communities and households.

The scheme is predicated on the belief that we can reduce our carbon footprint and increase economic opportunities at the same time. It does not have to be one or the other. We do not have to choose between saving jobs and saving the planet. If we are prepared to innovate, we can actually do both. That is why the government is establishing Enterprise Connect network to build the innovation capacity and support the innovation efforts of Australia’s small- and medium-sized enterprises. That is why we are providing specific assistance to small- and medium-sized enterprises to respond to climate change.

In July, I launched the Climate Ready program, which is worth $75 million over four years. It offers firms dollar for dollar grants of between $50,000 and $5 million to develop and commercialise climate change solutions. Today it is my pleasure to announce that the complementary Retooling for Climate Change program is open for business. It offers manufacturers grants of between $10,000 and $500,000 to make their operations more water wise and energy efficient. The program will meet up to one-third of the projects costs. Like Climate Ready, it is worth $75 million over four years. Both programs are targeted to small- and medium-sized enterprises.

Interest in Retooling for Climate Change is already high and more than 300 people have attended seminars to introduce the program over the last week. Additional seminars are planned to meet the demand. The program will support initiatives such as small-scale cogeneration plants to capture waste energy and convert it to electricity. It will support measures to capture stormwater and recycled waste water for use in the production processes. It will provide support for better insulation and schemes to recover waste heat from greater energy efficiency. It will assist in re-engineering to accommodate carbon-cutting tools and processes. Retooling for Climate Change will deliver great environmental outcomes that will put our small manufacturers on a more sustainable footing, and it will help secure jobs for the future.

Australian manufacturers are already responding to climate change. Figures from the Australian Bureau of Agricultural and Resource Economics tell us that the manufacturing sector reduced its energy consumption in 2006-07 despite increasing its production, its employment and its exports. Retooling for Climate Change will accelerate this process. It will help set Australia on a high-growth, high-employment path to a low-carbon future.

Louise Pratt (WA, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I would like to know if business groups have called for more assistance to deal with climate change.

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

I thank Senator Pratt for her question. The $75 million Retooling for Climate Change program is one of three initiatives under the government’s $240 million Clean Business Australia program, which includes the Green Building Fund and Climate Ready. In September last year the Australian Industry Group found that, while businesses are committing to tackle climate change and other environmental concerns:

Companies clearly need more information on how they can improve sustainable practices, they need a better understanding of an emissions trading scheme, and they need better incentives, particularly for small to medium firms.

Labor is meeting its election commitment to establish Clean Business Australia because we recognise just how important it is for governments to work in partnership with industry to tackle the threat of climate change. Clean Business Australia is part of a broader energy approach. (Time expired)