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Treasury states the obvious on emissions trading: Australia cannot go it alone.



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Warren Truss Leader of The Nationals Shadow Minister for Trade, Transport, Regional Development and Local Government Federal Member for Wide Bay

M E D I A R E L E A S E

W o r k i n g h a r d , g e t t i n g r e s u l t s

Media contact: Paul Chamberlin 0419 233989 / 02 6277 4482 paul.chamberlin@aph.gov.au www.nationals.org.au

30 October 2008

Treasury states the obvious on emissions trading: Australia cannot go it alone

Treasury modelling released today on an Australian emissions trading scheme shows it will reduce economic growth, drive up inflation and hit everybody’s wallet - yet do nothing to reduce global warming.

The Leader of The Nationals, Warren Truss said Treasury clearly stated this fact: “Stabilisation [of greenhouse gas emissions] is only possible with action by all major emitters”.

“The Treasury modelling confirms that the Rudd Government’s proposal to introduce an ETS in 2010 - ahead of most of the rest of the world and our major trading partners - is folly,” Mr Truss said.

“There seems to be an assumption that big emitters will simply fall into line once Australia and a few other countries act. This is unlikely and we certainly won’t know until well after Labor’s scheme is scheduled to begin.”

The Treasury modelling has also not taken account of the current economic crisis and global financial meltdown. The pricing side of the equation involves considerable speculation and is incredibly optimistic.

“However, we must have an effective and workable response to climate change and this report needs careful consideration. The Coalition will do that, unlike the Rudd Government which seems prepared to rush into this most momentous of decisions based purely upon ideology and a desire to reap new tax revenue,” Mr Truss said.