Mitch Fifield (Victoria, Liberal Party, Manager of Opposition Business in the Senate) Share this | Link to this | Hansard source

Tempting as it is, my question is not to Senator Arbib. My question is in fact to the Minister representing the Minister for Climate Change and Energy Efficiency, Senator Wong. I refer the minister to various assumptions made by the government in deciding to pursue a carbon tax and the similar assumptions in modelling the impact of a carbon tax in relation to the extent of complementary action elsewhere in the world. Are the government's expectations on the extent of international pricing of greenhouse gas emissions, whether through carbon taxes or trading schemes, currently being met?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I have been asked many questions in this place and in Senate estimates about the modelling on numerous occasions and I would again make this point: the initial modelling in relation to the CPRS was, from my recollection, the largest modelling exercise ever undertaken by the federal government.

Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

It does not make it right.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I will take the interjection from Senator Abetz. He says, 'It does not make it right.' It is interesting, because the opposition seem to want to disregard what Treasury tells them over and over again. We have had this constantly in the context of the carbon price and it is unsurprising that they therefore support a policy—'they' being the coalition—that no economist supports. Find us an economist who thinks that a taxpayer funded, bureaucratically driven, inefficient program is the best way and lowest cost way to support emissions.

In terms of international action, the government rejects any proposition that the opposition continue to make that other countries are not acting. I would make the point that some 90 countries, accounting for over 80 per cent of global emissions and 90 per cent of the global economy, have pledged to limit their carbon pollution by 2020. I would also make this point: without a cut price on carbon the risk for Australia would have been that we would be left behind as the world moves increasingly to place a premium on low carbon goods and services.

We on this side are Labor people, we support jobs. We also recognise that you have to look to future jobs and you have to look at how you position in the future. I think very few people would look around the world and believe you can be a first-rate economy and not also by a clean energy economy.

Mitch Fifield (Victoria, Liberal Party, Manager of Opposition Business in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I refer the minister to yet another delay in the consideration of cap-and-trade legislation in South Korea this week and the reported statements of Japanese officials today that there is no chance of Japan adopting a similar scheme. Contrary to the minister's assertions, is it not the case that the imposition of carbon taxes in other major economies is becoming less and less likely each day as Australia moves closer to the imposition of the world's biggest carbon tax.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I am very happy to have a discussion about one of the nations to which the senator referred in his question—that is, Japan—because I would make clear that over the past few months, the Japanese Prime Minister has emphasised on numerous occasions that Japan remains serious about tackling climate change. The Japanese Prime Minister has said:

… Japan made it clear that it remains committed to tackle climate change, despite immense challenges caused by the Great East Japan Earthquake.

Japan has already implemented a number of measures to reduce emissions. They have had a voluntary emissions trading scheme in place for seven years now. Tokyo and its adjacent province have mandatory cap-and-trade systems in place with absolute caps which will continue. Tokyo's scheme covers the industrial and commercial sectors responsible for around 40 per cent of Tokyo's emissions. Japan already has a fossil fuel consumption tax in place. (Time expired)

Mitch Fifield (Victoria, Liberal Party, Manager of Opposition Business in the Senate) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I refer the minister to assumptions in Treasury modelling that international linking would be widespread with extensive trading of offsetting permits between countries. Given the United States is moving further away from carbon taxes or trading schemes, Japan is ruling them out, Korea keeps delaying them, the price in the European scheme has crashed and examples given by the ministers of China and India bear no resemblance to the Australian scheme, is it not time for the government to admit that they have got it wrong and to axe the tax?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

That was an interesting attempt by Senator Fifield to muscle up, wasn't it? It is a pity he did not actually listen to my answer before reading his supplementary, because I did not refer to China and India. That is the problem with coming in and just slavishly reading out what some staffer has written for you instead of doing the work yourself.

Apart from that, what I would say is that we do believe in international linking. We believe it is important. What I find amazing is that those opposite, the economic Luddites over there, who come in here and say they do not want international linking are now telling us that we should have more of it. You are the people who say you do not want international linking. They say, We do not like trading with other countries when it comes to carbon.'

Honourable Senators:

Honourable senators interjecting—

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

The coalition's policy is to not allow international linking. That is your policy. That is what Mr Abbott wants. And you now come in here and say, 'Really, we want it.' Have a look in your own backyard.

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

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