Australia will profit under emissions trading: WongBy Nic...

Australia will profit under emissions trading: Wong
By Nic MacBean

Posted 2 hours 20 minutes ago

Audio: Listen to Senator Wong on NewsRadio (ABC News) Change Minister Penny Wong says Australian industry will remain competitive under an emissions trading scheme, despite concerns from business that emissions-intensive industries may be forced overseas by higher costs.

The Government's Treasury modelling on the scheme's effect on industry and the economy will be released tomorrow.

Reports today say the Carbon Pollution Reduction Scheme (CPRS) will have just a modest impact on the Australian economy.

The modelling is expected to show that iron ore production will enjoy sustained growth and domestic steel production will continue to be competitive in a global marketplace.

This is despite concerns being raised by some in industry and Government in the past few months that these industries and others would be forced overseas under the CPRS.

In an interview with ABC NewsRadio, Senator Wong said tomorrow's modelling will back the Government's approach on mitigating human-driven climate change.

"We can take action on climate change but also retain a strong economy and in fact we'd anticipate that the modelling will show that there are significant opportunities for Australia if we do take action on climate change," she said.

"What the modelling shows is that Australian industries will remain competitive and there are significant opportunities in us taking action on climate change and doing the economically responsible thing."

The Government is determined to introduce an emissions trading scheme by 2010, despite calls from the Opposition to delay it until at least 2011 in the wake of global financial turmoil.

Senator Wong says the Government remains committed to introducing a scheme on time.

"We have to very much focus on what's in the long-term interests of the nation, and what we've been saying when it comes to the start date is two things," she said.

"The first is that we know that when you have an economic adjustment to make, the longer you delay the higher the costs.

"The second key point in the context of the current financial crisis is that the calls for business certainty are increasingly important.

"One of the things that govermnments can do when it comes to climate change and the changes that are needed in our economy is to give clear certainty to business."

The Government believes the rest of the world will move to a lower carbon economy, and Senator Wong says Australia must take the same approach.