Emissions Trading Scheme

Andrew Robb interview with Kirrin McKechnie, “The World Today”

30-October-2008

Portfolio Media Releases, The Economy, Emissions Trading Scheme

Topics: Emissions Trading Scheme and Government’s economic modelling

ELEANOR HALL: The long awaited Treasury modelling on the cost of a carbon emissions trading scheme is being released today.

But the Federal Opposition is urging the Government to delay the scheme's introduction in the light of the financial turmoil gripping Australia and the world. It says the Treasury data is outdated because it doesn't take the economic crisis into account and that it would be irresponsible policy to act on it.

But the Federal Government is vowing to push ahead with its plans to get its carbon trading scheme up and running by 2010.

In Canberra, Kirrin McKechnie reports.

KIRRIN MCKECHNIE: It's the final piece of the puzzle in the Federal Government's plan to tackle climate change.

But the Treasury modelling assumes the drought will be over, the dams will be full and it hasn't factored in the global financial crisis.

ANDREW ROBB: They are blindly heading towards that start date, irrespective of what else is happening around the world - even the biggest financial meltdown since the Great Depression. Companies are beside themselves.

All of the discussions I'm having, they just cannot understand why this Government is so committed, so ideologically committed, to an early start date irrespective of what impact it might have on jobs and emissions heading overseas, on the environment, whatever.

KIRRIN MCKECHNIE: Andrew Robb is the Opposition's emissions trading spokesman. He thinks a 2010 start date is crazy.

ANDREW ROBB: Industry is saying to me that they are going to be consumed over the next year or two just physically trying to cope with the flow on affect in the real economy of the financial meltdown.

Now to superimpose in the next 12 months on top of that, a new tax on many of these industries that are trying to compete against countries that will have no such impost.

It fills them with great fear about what it will mean for the viability of their business, what it will mean for jobs and all of these factors must be taken into account. Yet you listen to the minister, Minister Wong, you listen to Mr Swan, they appear oblivious to what is going on out there in the real economy.