BENSON: Penny Wong, can I begin by asking you about the rally outside Parliament yesterday? There was a call from the Government for Tony Abbott to apologise for some of the abusive language involved in the protest. He said he regrets the abusive language. Is that sufficient from your point of view?
WONG: I think the problem here is Mr Abbott really made a very poor decision to associate himself with a rally at which you saw some signs such as those associated with genocide and Adolf Hitler. I mean, this is not the sort of judgment you would expect from a leader of a major political party, a political leader in this country. It really shows that Mr Abbott had very poor judgment and he ought not have associated himself with those sorts of views.
BENSON: OK can I move onto climate change and the financial aspects involved in it. The Government has been looking to the Productivity Commission to clarify the claim and counterclaim about whether Australian industry is put at risk by the carbon tax specifically. That report is not due out until May. But the chairman of the Commission, Gary Banks, has said basically, hes not able to answer that question. Is that disappointing to you?
WONG: I think the Productivity Commission will undertake a very important analysis of the costs of policies in other countries. And we also know that imposing regulation as many of our major trading partners are imposing does impose a cost. Generally it is not as cost-efficient as a price on carbon, which is why the Government is proceeding down that path.
BENSON: But youre looking to the Productivity Commission to be some sort of independent authority in weighing claim and counterclaim in a political debate. The Commission says we really cant give you a definite answer on that, too many variables.
WONG: The Productivity Commission has yet to report and Im sure their report will contain a lot of useful information to counter the false assertion that Mr Abbott is making that no one else is acting.
We do know other countries are acting. This is simply another incorrect fact peddled by an Opposition that simply does not want to accept the reality of climate change.
BENSON: Senator, can I ask you about another report that is out today. Thats from the Grattan Institute, a research institute. Its released a study showing that government programs over the last 15 years they had something like $12 billion to spend on programmes to cut emissions theyve been largely ineffective. Thats over 15 years over both governments your own Labor government and the previous coalition. The government programs just havent worked.
WONG: This really reinforces what weve been saying; that many programs may be useful, but fundamentally, if you want to reduce emissions at the lowest cost, if you want to move to a clean energy economy, if you want to make Australia a less polluting economy, you have to put a price on carbon.
This is a fundamental economic reform. And really, these findings confirm the approach that the Government has been advocating, which is pricing carbon is the most efficient way to bring this reform about.
BENSON: Another report also touching in the same area in the Financial Review this morning says that the Government has already rejected a proposal put by Professor Ross Garnaut, your advisor on Climate Change, just last week. He said the Government should use some of the revenue gathered from a carbon tax to improve welfare and provide personal tax cuts. The Financial Review reports says youve already thrown that idea out.
WONG: The Government has made very clear we have not made final decisions on a great many issues associated with the carbon price. That is because we are working through them with industry, with members of the community, with members of business.
This is a big reform. We want to consult widely. Obviously Professor Garnauts reports have been a very important contribution to this continued discussion. But ultimately the Government will have to make its decisions based on these consultations and its judgment about what we believe is the best way forward.
What we have said in relation to revenue from the carbon price is of course as a Labor Government, we will reflect Labor values in our assistance package. And our first priority will be Australian households, particularly lower and middle-income Australia.
BENSON: So is the tax cut proposed by Professor Garnaut still in the Prime Ministers phrase a live option?
WONG: Thats what the Prime Minister has said. That obviously there are a range of ways in which you can ensure that you assist households and a tax option is amongst them.
BENSON: Penny Wong, thank you very much.
WONG: Good to speak with you.
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