Doug Cameron (NSW, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Climate Change and Water, Senator Wong. Can the minister update the Senate on the outcomes of the recently released climate change modelling by Treasury that will make a key contribution to the Carbon Pollution Reduction Scheme?

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

I thank Senator Cameron for the question. I welcome the opportunity to outline briefly to the chamber the importance of the recently released Treasury modelling  Australia’s Low Pollution Future. As I have said previously, this is the most comprehensive economic modelling exercise ever undertaken in Australia. It confirms yet again that it is in Australia’s economic interests to act decisively on climate change. It arrives at three key conclusions: first, the Australian economy can continue strong growth while reducing emissions; second, the earlier that Australia acts to tackle climate change the cheaper the costs of action; and, third, with a global carbon constraint many of Australia’s industries will become more, not less, competitive. As I have said previously, it shows that average annual GNP growth will continue to grow and will be just one-tenth of one per cent less if we take action than it would be in a world without climate change.

There are a couple of points that I briefly want to make to the Senate. First, these modelling estimates are in fact very conservative because the Treasury did not model the costs of climate change, and we know from Professor Garnaut’s review that those are significant. Second, I make this point: I remind the opposition of the Shergold report which they themselves commissioned when in government. It actually predated the Treasury modelling but presented a similar point of view when it came to the issue of early action. The Shergold report stated that clearly acting early increases investment certainty, an issue I would hope the opposition would have some regard to. The Shergold stated:

Waiting until a truly global response emerges before imposing an emissions cap will place costs on Australia by increasing business uncertainty and delaying or losing investment.

So I would invite the opposition to remember the advice they received from their then head of the Department of the Prime Minister and Cabinet, Dr Shergold. I would also leave them with this, at the conclusion of question time. I remind those who are supporters of Mr Costello that he, in the June prior to the election, stated in relation to an ETS:

… we are talking about getting it up and running by 2010. There is plenty of time to do it—2010 and thereafter—Kerry.

Clearly, the then Treasurer was in the camp for a 2010 start date, and I would invite those who were very public Costello supporters to back him now. Second, I remind those opposite of the position of Mr Turnbull when in government. He stated this, as follows:

Our emissions trading scheme, which will be the most comprehensive in the world, will commence in 201 and by putting a price on carbon will itself drive the deployment of all clean energy sources adding to the impetus of our clean energy target.

It is up to you, Senator Minchin, Senator Bernardi and the remainder of those on that side: are you going to back Mr Turnbull or not?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.