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Monday, 30 November 2009
Page: 9499


Senator MILNE (4:30 PM) —I want to go to the productivity contribution. I want to know whether it is possible for new entrants to obtain more permits than they require because they will be allocated on baselines set on industry average rather than industry best practice. If a new entrant is highly efficient compared with the industry average, aren’t they going to get a windfall gain under the government’s scheme? And isn’t that incredibly economically inefficient and damaging because it is essentially providing a windfall gain or a subsidy that offsets the whole point of the price mechanism?