Ron Boswell (Queensland, National Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Small Business, Independent Contractors and the Service Economy, Senator Carr. Has the minister seen the statement from the Australian Chamber of Commerce and Industry concerning the impact of the CPRS on small and medium sized enterprises? Specifically, it says:

… trade-exposed SMEs … are not eligible for assistance—

and that it would erode profitability by four to seven per cent on average. What action has the minister taken on behalf of small business to ensure viability of small business under the CPRS?

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

The ACCI report is only a partial analysis, Senator Boswell. It is based on a sample of just 11 businesses in only a small range of small and medium sized enterprise sectors. It also assumes that small businesses have already implemented all energy-saving and efficiency measures available to them, which means that it has a tendency to underestimate savings from energy efficiency opportunities and overestimate the costs.

All Australian businesses will benefit from the measures that the government has already announced, on 4 May—that is, a one-year delay to the start of the scheme and a $10 fixed price. The energy efficiency and other complementary measures are also built in to a whole range of budget measures across a range of portfolios. It is also important to appreciate that the government is providing some $2.7 billion for a Climate Change Action Fund which will support industries, small businesses and community groups. The government is also providing some $200 million this financial year through the CCAF to help businesses and other community groups actually prepare for the introduction of the scheme, and there will be a range of measures to underpin that. It is a pity that the coalition feel that they can run and hide from these issues by failing to pass this legislation. It is a pity that the coalition think that they can avoid their responsibilities by constantly adjourning discussion of these issues. (Time expired)

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order! Senator Boswell, wait until I give you the call. I need to hear your question.

Ron Boswell (Queensland, National Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Given that the ACCI study found that firms would likely need to reduce labour costs by between 4.4 per cent and 12.9 per cent, has the government talked to the unions about the certainty of even higher unemployment under the CPRS?

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

I find it highly amusing when Senator Boswell seeks to lecture us about our relationships with the trade union movement. I find it extraordinary that the group in that corner—including of course Senator Boswell with his long interest in the meat industry, and in particular his direct involvement with trying to undermine workers’ conditions in the meat industry and his direct involvement in pursuing the Work Choices options that he has throughout the last 12 years of the previous government—would now seek to lecture a Labor government on its relationship with the trade union movement. What I do know is simply this: every trade unionist in this country understands the importance of climate change and is concerned to ensure that appropriate action is taken to mitigate the costs of climate change. Every decent trade unionist in this country understands the costs of climate change. (Time expired)

Honourable Senators:

Honourable senators interjecting—

Ron Boswell (Queensland, National Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question.

John Hogg (President) Share this | Link to this | Hansard source

Senator Boswell, I will give you the call when there is silence and it can be heard. You are entitled to be heard in silence—from both sides.

Ron Boswell (Queensland, National Party) Share this | Link to this | Hansard source

Given that small business is the engine room of the Australian economy, employing approximately 64 per cent of Australia’s private sector labour force and producing nearly 50 per cent of Australia’s domestic output, why has the minister not done more to prepare small business for the CPRS trauma of reduced profits and reduction in labour, especially when they are already struggling in the global economic crisis?

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

Senator Boswell, again, has got it all wrong. This is a government, a government of which I am very proud to belong, which has provided some $2.75 billion to assist industry to deal with issues relating to climate change. The costs of inaction are much much greater than the costs of action, Senator Boswell—a simple proposition you have failed to understand. The costs of inaction will be much greater in terms of the impact on jobs and on business opportunities, on the economy and on the prosperity of this nation. In particular, the persons who will most bear that burden will be the weakest and the poorest members of our community. The failure of the coalition to face up to their social responsibilities means that the workers and small business people are the ones who will carry the burden of your failure. (Time expired)

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.