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Legislative Council - Fifty-First Parliament, Third Session (51-3)
2008-11-13 Daily Xml
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Question Time

EMISSIONS TRADING SCHEME

The Hon. D.W. RIDGWAY (Leader of the Opposition) (14:20): I seek leave to make a brief explanation before asking the Minister for Mineral Resources Development a question about the federal government's emissions trading scheme.

Leave granted.

The Hon. D.W. RIDGWAY: It was announced today (and it is currently on the Adelaidenow website) that the Port Pirie smelter will close if the Rudd government's carbon emissions trading scheme goes ahead. That was confirmed by its owner today. The article on the website states:

Nyrstar, the world's largest zinc producer, told ABC Radio it was also reviewing its smelter operations in Tasmania, warning of 'devastating effect on communities' if the plants were to close. Nyrstar chief operating officer Greg McMillan told AM that the federal government's carbon emissions trading scheme—scheduled to roll out in 2010—would increase its operating costs significantly. The move would cost Nyrstar about $70 million per year, making its Australian operations unviable, resulting in the closure of the Hobart and Port Pirie plants, with the likely result that smelting operations would shift to countries like China. The Port Pirie blast furnace smelter has 670 employees and 110 full-time contractors.

The Mayor of the local area, Mr Geoff Brock, was interviewed on ABC Radio 891 this morning. David Bevan said to him, 'Do you want the National President of the ALP, Premier Mike Rann, to lean on Penny Wong and say "Give towns like Port Pirie a break"? Mr Brock said, 'I would implore the Premier to do that, and I know that Nyrstar has been talking to Kevin Foley and also Mike Rann and Paul Holloway, but we need their assistance to ensure that Port Pirie is not decimated along with other regional areas of South Australia.' What discussions has the minister had with Nyrstar, and does he now concede that the ALP's emissions trading scheme will decimate regional and rural South Australia?

The Hon. P. HOLLOWAY (Minister for Mineral Resources Development, Minister for Urban Development and Planning, Minister for Small Business) (14:22): I have had several discussions with Nyrstar over the past six months or so, including discussions with Mr McMillan. Nyrstar has certainly been forceful in putting its point of view in relation to the impact that the emissions trading scheme may have upon its future operations and, indeed, this government has taken up these issues with the federal government. The Deputy Premier, who was acting premier at the time, wrote to—

The Hon. D.W. Ridgway interjecting:

The Hon. P. HOLLOWAY: So does the Liberal opposition, I think. They are supporting an emissions trading scheme, too, as I understand it. So, if what they are saying is true, they are saying that they would get rid of it at Port Pirie; just do it a year or two later. Is that what they are saying?

If we can just get back to the question. The Deputy Premier, who was acting premier at the time, wrote to the Prime Minister on 8 October, I think, in relation to these matters. He basically put the position that Nyrstar has been putting to the government and urged the commonwealth to give careful consideration to that position.

While, of course, this government is supportive of measures that the federal government is proposing to take in relation to reducing CO2, of course, we need to make sure that any action the commonwealth takes is sensible, in terms of ensuring that we do need to reduce the amount of CO2 that we produce, and there is no doubt that operations such as the Port Pirie smelter are large contributors to the CO2 problem. However, there is obviously little point in reducing our CO2 levels in this country if the equivalent or more CO2 is produced elsewhere in the world—if the operation is simply transferred to other countries that produce even more CO2 because their plants are less efficient than what might be the case here.

While the federal government is making its major decision on the emissions trading scheme I am sure we will hear a lot more from individual companies which no doubt will be using the media to get across their point of view. That is part of the debate that will happen inevitably. What is important is that we make the right decision, taking into account all of the factors.

Clearly, we cannot afford to ignore the issues of climate change and the contributors to that but, also, it makes little sense for us to take action which has a negative and adverse impact here but which results in no overall reduction, or maybe even an increase, in carbon dioxide elsewhere in the world. So, all I can say is that, while this government will support moves to reduce CO2 at a national and world level, we obviously do not want to see that happen at the expense of this state's economy, and we will be vigorous in ensuring that that is brought to the attention of the commonwealth government.

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