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Monday, 7 November 2011
Page: 8273

Senator WONG (South AustraliaMinister for Finance and Deregulation) (10:53): I think that goes back to the issue I was raising. This all comes down to the way in which companies manage their carbon price exposure. Pre-CPRS, as you said, there was deferred payment. In these arrangements we have the $5.5 billion, we have the Energy Security Council and we have the capacity to offer loans. This is assuming, of course, that the market does not deal with this. I know that the Australian Bankers Association had views on the previous occasion about whether deferred payment was in fact required. I assume the senator, because he has taken an interest in this, would be aware of the views of the financial sector that the market has the capacity to provide instruments to manage this risk without government interfering with the auction mechanism. For that reason, the government put in place the policy parameters that I have outlined to deal with this.