THE resource industry has welcomed the Coalition government’s $2.5 billion Direct Action plan as a suitable alternative to the carbon tax, after the strategy against climate change successfully passed through the Senate late last week.
After a lengthy debate in the Senate on Thursday evening, the Carbon Farming Initiative Amendment Bill 2014 (Cth) was passed with the support of the Palmer United Party and independent Senator Nick Xenophon.
National resource employer group the Australian Mines and Metals Association (AREEA) said the Direct Action plan was a sensible substitute for a flawed carbon tax.
“AREEA welcomes that direct action is based on a competitive market mechanism that incentivises carbon abatement rather than penalises its emission. Such a scheme will help drive productivity improvements and sustainable development initiatives,” said AREEA chief executive Steve Knott.
“This approach has been endorsed by the community as the best option for our country to move forward on climate change, certainty as a more considered alternative to flawed carbon taxes.
“Unlike the carbon tax, it is a proportionate and sensible approach to carbon abatement that minimises the impact on Australia’s economy and living standards.
“Once the direct action plan is legislated, Australian industry can get on with business with greater certainty on how Australia is responding to climate change and the responsibilities and obligations of individual enterprises.”
In the days leading up to the Senate vote, the Coalition struck a deal with the Palmer United Party in exchange for its support, agreeing to a review of carbon farming practices and the retention of the Climate Change Authority.
Additionally, the Coalition agreed to conduct an 18-month inquiry toward an Emissions Trade Scheme, to be carried out by Bernie Fraser in his capacity as chairman of the Climate Change Authority.
The resource industry urged caution on this matter, calling for consideration on the comparability of international approaches with Australia’s economy, geography and industry.
“Consideration of any international emissions trading schemes need to be broken down by industry sector and consider the comparability to Australia’s heavily trade exposed economy,” Mr Knott said.
“Ultimately, we do not want to create an unequal playing field that will disadvantage not only individual Australian enterprises, but also our broader economy, jobs and national wellbeing.”
The Direct Action plan will return to the Upper House at the next sitting of parliament.
