House of Assembly Fifty-First Parliament, Third Session (51-3) 51 3 Parliament of South Australia House of Assembly published Ministerial Statement Ministerial Statement Carbon Pollution Reduction Scheme CARBON POLLUTION REDUCTION SCHEME The Hon. M.D. RANN House of Assembly Ramsay Premier Minister for Economic Development Minister for Social Inclusion Minister for the Arts Minister for Sustainability and Climate Change The Hon. M.D. RANN (Ramsay—Premier, Minister for Economic Development, Minister for Social Inclusion, Minister for the Arts, Minister for Sustainability and Climate Change) (14:04): I seek leave to make a ministerial statement. Leave granted. The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: Today I released the South Australian government's submission to the commonwealth government's Carbon Pollution Reduction Scheme green paper. There is no doubt that the proposed scheme, a cap and trade emissions trading scheme, will be one of the most significant economic changes experienced by Australia. For the first time in this nation's history, there will be a limit and a price on carbon emissions. In August 2006, I stood on Bondi Beach with the former premier of New South Wales and the former deputy premier of Victoria and released a paper with a design for a national emissions trading scheme. Members interjecting: The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: Yes, there have been a few Liberal leaders since then. Let me just tell you. The Howard government said it would ruin the economy and that it was doomed to fail. Mr Hamilton-Smith interjecting: The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: I think Iain Evans was the leader of the Liberal Party then; that was when you pledged him your support. The Howard government said it would ruin the economy and was doomed to fail. Now, just 10 months after the Rudd Labor government came to power, we are well on our way to implementing just such a scheme. The scheme is expected to have a direct impact on about 1,000 companies nationwide, including about 40 South Australian companies, with a flow-on effect on the community and businesses broadly. For this reason, we need to ensure that all households and businesses are supported with the transition to a low-carbon economy. The government has highlighted a number of areas in its submission to support this transition, including the importance of assisting households and emission-intensive industries, and addressing the impacts that the scheme will have on public transport. I have always argued that every cent paid into an emissions trading scheme must be used to assist Australian households and businesses to adjust to a carbon constrained world, as well as into research to reduce emissions. No emissions trading scheme must ever be used as some kind of revenue raiser. The money has to go back to the Australian people and Australian businesses that are affected by their carbon content. As part of the process, I have met with many industry representatives in recent weeks from companies that are based in South Australia or that have operations in South Australia—including manufacturing, mining and energy—to listen to their views on the scheme. I have been meeting with companies such as AGL, Origin, and other companies such as OneSteel, to assess their response to the green paper. Key features of the state government's submission include supporting South Australian households as they face higher costs for carbon-intensive products such as fuel and electricity. The South Australian government welcomes the federal scheme's measures that would see households assisted with tax relief, increasing benefit payments and implementing energy efficiency measures. While it is crucial that we move to a lower emissions economy, households must be assisted with this transition. For its part, the South Australian government will assist low income households through the Residential Energy Efficiency Scheme due to commence on 1 January 2009. Emission-intensive industries should not be disadvantaged by the lack of a global price on carbon. For this reason, the South Australian submission fully supports the provision of assistance to emissions-intensive trade-exposed industries. For those trade-exposed industries that are not eligible for assistance under the commonwealth's proposed criteria, such as the glass industry, the state government recommends that support be provided using the Climate Change Action Fund. We want to see the cap and trade scheme see a transition to assist industries to adjust. We do not want to see South Australian industries being forced to close and to see that work being done offshore in countries that do not give a damn about climate change, so that is why transition and support are vitally important. Members interjecting: The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: We said that right from the start, and I know the Leader of the Opposition is carbon-confused. He does not understand. He is a climate change denier. We saw that when we had the greenhouse gas reduction legislation where in-step with my doppelganger— Mr WILLIAMS House of Assembly Mr WILLIAMS: A point of order. The Speaker House of Assembly The SPEAKER: Order! The Premier will take his seat. Mr WILLIAMS House of Assembly Mr WILLIAMS: I thought debate was out of order. The Speaker House of Assembly The SPEAKER: No, it is not out of order in ministerial statements; it is in question time. The Premier has been given leave. The Premier. The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: I did not realise that after 23 years I am finally obeying standing orders. It is about time I read them. The key thing about that is that we saw the Leader of the Opposition come in and tell us that our greenhouse gas reduction legislation was not strong enough. It was about the strongest in the world but it was not strong enough. He was a bit green that day. He was much greener than David Suzuki, Tim Flannery or David Attenborough. Then the business community got on the phone and said, 'Hey, mate, do you realise what this will do?' The next day it was going to destroy the economy.' Now, apparently, he supports the new Howard position, which is the position that we had as CCAF, which he then opposed. So, that is the story of this Leader of the Opposition. He is the flip-flop man. He has no consistency, no memory that lasts longer than 24 hours. You cannot have a reckless premier in this state. People remember that those who bark loudest will lose longest. For those trade-exposed industries that are not eligible for assistance under the commonwealth's proposed criteria, such as the glass industry, the state government recommends that support should be provided using the Climate Change Action Fund. The impacts of the scheme on public transport must also be considered. Public transport will be one of the solutions for reducing emissions from the transport sector and encouraging more sustainable transport strategies. The inclusion of diesel fuel and electricity in the Carbon Pollution Reduction Scheme could increase the cost of public transport. The South Australian government recommends that the commonwealth government avoids any negative effects on public transport, including electrified and diesel trains and trams. For our part, the South Australian government is putting its money where its mouth is. The 2008-09 budget reflects the importance of public transport, with a 10-year, $2 billion investment to upgrade, electrify and extend the metropolitan rail network, and to extend the tram to Port Adelaide, Semaphore and AAMI Stadium. We remember, of course, that trams were in the opposition's policy; when we announced it the opposition was opposed to it, so we get used to this. The South Australian government will continue its leadership in tackling climate change by promoting renewable energy, encouraging energy efficiency and assisting adaptation measures. Despite being a relatively small state, we have more solar, wind and geothermal activity and investment than any other state. We have 8 per cent of the population of Australia, and we have 53 per cent of the nation's wind power, 40 per cent of the nation's grid connected solar power, as well as 80 per cent of the nation's geothermal investment— Mr Hamilton-Smith House of Assembly Mr Hamilton-Smith: Thanks to the Liberal program. The Hon. M.D. RANN House of Assembly The Hon. M.D. RANN: The Leader of the Opposition said, 'Thanks to the Liberals.' There was not one single wind turbine, that I know of, operating in South Australia until we were elected to government, so it is totally dream world. Climate change has significant consequences for our economy and environment. Government, business and the community must work collaboratively in adjusting to a carbon constrained world.