Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Assistant Treasurer, Senator Sherry. Can the Assistant Treasurer inform the Senate of the important economic considerations that have gone into developing the government’s response to climate change?

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

I thank my colleague Senator Polley. The government’s response to the very real dangers of climate change is a continuation of its reformist agenda and its commitment to make major and decisive decisions in the interests of all Australians. We have seen an example of that most recently in the Rudd Labor government’s decisive actions to the global financial and economic crisis, so tough decisions have been needed and will be needed. It was not easy to float the Australian dollar; it was not easy to pull down tariff walls; it was not easy to open up financial markets or introduce national superannuation, and responding to climate change is certainly the most difficult of all of these policies.

We are tackling climate change through economic reform, for climate change is already affecting the world economy as well as national and local economies. The flow-on of these effects will mean more changes for households, family budgets and jobs. The Garnaut inquiry highlighted some inconvenient truths for some in this place. What would happen if we did nothing about climate change? Irrigated agricultural production in the Murray-Darling Basin could drop by more than 90 per cent this century if we do nothing. Unmitigated climate change would increase the cost of food by more than 10 per cent relative to other goods.

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

Senator Boswell interjecting—

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

I am glad the National Party senators are at least listening. Unmitigated climate change would lead to falling wages and rising prices, reducing the level of consumption for every Australian by around $5,700. The International Energy Agency has estimated every year of delay would cost the world economy some $500 billion. They are just some of the economic costs of doing nothing. Our economic prosperity is at risk. The impact of climate change on infrastructure alone would reduce our GNP by nearly 2½ per cent this century.

Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the Assistant Treasurer inform the Senate about whether there are economic opportunities we as a nation would be squandering if we fail to take the lead in meeting the challenges of a world in which climate change is a clear and present reality.

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

The low-carbon economy of the future offers an enormous opportunity. It offers opportunities to those people in those countries ready to take action. China, for example, as a significant trading partner offers enormous opportunities for business to benefit from its low-carbon development. The recent report by PricewaterhouseCoopers for the China Greentech Initiative estimated the total addressable market size for clean- and low-pollution industries in China could be between US$500 billion and US$1 trillion by 2013, so it presents significant opportunities for value adding for those countries like Australia that act early and decisively in responding to this very significant economic challenge. The low-carbon future will bring a new wave of innovation without putting the renewable energy sector, expected to grow some 30 times its current size— (Time expired)

Helen Polley (Tasmania, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the Assistant Treasurer inform the Senate about how business leaders in Australia and around the world are responding to the challenges of climate change in the way they operate? How can Australia maximise these economic opportunities in a world that is adapting to climate change?

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

It is very important for the world to adapt to climate change and not take the National Party approach and duck back under that doormat of theirs.

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

The Labor Left live under the doormat!

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

Senator Joyce, all the representatives of the doormat party can talk about is that roast lamb will rise to $100. We will remember your prediction in five years time. Mr President, we will see just how accurate the scare stories that Senator Barnaby Joyce has been presenting are. There is no real consideration of the issues, only silly scare stories about roast lamb costing $100.

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

More than $100.

Nick Sherry (Tasmania, Australian Labor Party, Assistant Treasurer) Share this | Link to this | Hansard source

So it is more. We will see just how true your scaremongering is in five years time. There are many companies and economies that are ready to step into the new economic race to develop low-pollution goods and services. (Time expired)