A fifth-term Coalition government would use some revenue raised by auctions of emission permits to help offset the impacts of higher electricity prices under an emissions trading scheme, Prime Minister John Howard announced in last night's leaders' debate.
The Prime Minister also for the first time said the Coalition would contemplate signing an international agreement that imposed binding targets on Australia and would pressure the US to do the same. The PM said any international agreement would need to involve major emitters including China and India, but said he recognised “that stages of development matter”.
Howard’s commitment to recycling some permit revenue to those on low incomes is in line with suggestions in the 2006 states and territories emissions trading discussion paper and the 2007 trading report by the Prime Minister’s task group.
Opposition Leader Kevin Rudd attacked the PM for what he termed 11 years’ failure to act on climate change.
“We need now as a nation to act on climate change rather than simply avoid the problem which Mr Howard’s Government has done in this last 11 years,” Rudd said. “And on top of that we have Mr Howard still refusing to set a carbon target.”
But the PM strongly defended his government’s record, referring to spending announcements made since 1997, some of which relate to programs that will run through to 2020.
“Mr Rudd says that we have done nothing. That is nonsense. We have brought forward investments of something like $3.5 billion in climate change initiatives. We have established a committee which recommended the introduction of an emissions trading system and work is well under way to introduce that by 2011. It will be the most comprehensive emissions trading system anywhere in the world.”
“We will set a target in the middle of next year after properly examining the economic consequences of targets,” the PM said. “Unlike Mr Rudd we like to know what the target will do before we nominate it. He does it the other way round.”
Rudd was quizzed by the panel of journalists about failing to propose an interim target to support Labor’s proposed 60% reduction target for 2050 and said interim targets would be set next year.
“We have commissioned in opposition a study by Professor Ross Garnaut of the Australian National University to analyse specifically the interim benchmarks which would be necessary,” Rudd said.
“A federal Labor Government decision on interim targets would be made on the basis of the Garnaut report due in June, he said. This report would be used to methodology for getting there in terms of interim targets will come will come from the Garnaut report due in June.”
Rudd also accused the PM of going quiet during the election campaign on his support for nuclear power.
“Where [have]his 25 nuclear reactors suddenly disappeared too? He was very keen on those a little while ago. But it seems that the nuclear reactors have gone out the back door. In the Switkowski report 25 were recommended, presumably to be dotted around the coast of Australia. Mr Howard seems to have gone quiet and cool on that because of his concern about the political reaction.”
Sydney Morning Herald journalist Peter Hartcher asked the Prime Minister about comments by Environment Minister Malcolm Turnbull that developed countries should accept binding targets in the light of comments by President George W Bush that the US would not be bound by such targets.
“So who is right here? Turnbull or Bush?,” Hartcher asked.
“Mr Turnbull absolutely,” the PM replied. “And I can make one thing very clear is that if I am re-elected one of the things I will be doing is putting that view very strongly to the US President.”
Howard said the US had shifted its position, but has “got to move a lot further”. “You have got to have an international agreement” that includes the US, China and India, the PM said.
“We really have to get everybody involved in a new international agreement. We may not be involved quite to the same extent and I recognise that stages of development matter and I understand the Chinese and the Indian position, but you’ve got to get everybody involved.” Rudd said Australia’s decision not to ratify the Kyoto Protocol had been used as an excuse for inaction by China.
“I have listened carefully to Mr Howard’s statements on climate change and I don’t believe at the end of the day he is really committed to this because if he was he would have acted in the 11 years leading up to this election,” Rudd said.
