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House of Assembly - Fifty-Third Parliament, Second Session (53-2)
2015-09-22 Daily Xml
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Emissions Trading Scheme

Mr KNOLL (Schubert) (14:52): My question again is to the Treasurer. Has the Treasurer been made aware of the research findings requested by minister Hunter of his department on emissions trading schemes operating in other jurisdictions around the world?

The Hon. J.W. WEATHERILL (Cheltenham—Premier) (14:53): Recently, we released a carbon reduction strategy which has been published. It's the product of some work that was done under a cabinet committee that I chaired that includes the Treasurer and the Minister for Environment. We are proud of the fact that South Australia is playing a leadership role at a national level in relation to tackling climate change.

Ms Chapman: So, what about the emissions trading scheme?

The Hon. J.W. WEATHERILL: As the Treasurer just said, we support an emissions trading scheme.

Mr Marshall: For South Australia?

The Hon. J.W. WEATHERILL: No, we think it's unlikely that a state-based—

There being a disturbance in the strangers' gallery:

The SPEAKER: Would the person in the gallery who is using flash photography leave forthwith.

The Hon. J.W. WEATHERILL: We think that a state-based emissions trading scheme is unlikely—

The SPEAKER: Could the attendants remove that person from the gallery? Premier.

The Hon. J.W. WEATHERILL: We think a state-based emissions trading scheme is unlikely to be successful or even possible, frankly. There are some very substantial constitutional barriers which would prevent us from introducing such a scheme.

Leaving aside all of the political corners into which people get on this debate, let's just speak a little bit openly and honestly about this. Any consideration of an externality which is not capable of being priced into a product is best met through ensuring that that externality can be built into the pricing system. That is what people mean by putting a price on carbon, because the market mechanism essentially fails because it does not price in all of the costs associated with carbon pollution.

Ms CHAPMAN: Point of order, Mr Speaker. This question was very specific, that is, whether he is aware of the research done by minister Hunter's office. We don't need a speech.

The SPEAKER: That is not a point of order.

The Hon. J.W. WEATHERILL: Mr Speaker, it is important, I think, to speak frankly about this issue and get some honesty into this debate, because when people honestly apply themselves to this matter what you get is an overwhelming consensus amongst the overwhelming number of people who have considered this issue.

It caused, of course, Margaret Thatcher to agree that there needed to be a response to climate change. It caused prime minister Howard to reach the conclusion that there needed to be a market-based mechanism response to climate change. It caused the present Prime Minister to reach the conclusion that there needs to be a market-based mechanism to address the question of carbon pollution and climate change.

The South Australian government is a strong supporter of market-based mechanisms to put a price on carbon. It is the most efficient way of ensuring that we reduce carbon pollution in our atmosphere, which is a threat, of course, to the nation and indeed the world, and we will continue to play a leadership role in that regard. We have put an open and honest discussion paper out to the community, and we will reflect upon what emerges from that discussion paper.

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