[Greens-Media] Howard's 'cautious' approach: Profits today, shocks tomorrow

[Hollo, Tim (Sen C. Milne)]

Howard's 'cautious' approach: Profits today, shocks tomorrow

Sydney, Friday June 1, 2007  The Prime Minister's hand-picked Emissions
Trading Task Group is proposing short term protection for the biggest
polluters, with massive economic and environmental costs in the years
after Mr Howard leaves power.

Australian Greens climate change spokesperson, Senator Christine Milne
said, "This report confirms our worst fears. Adopting the Task Group's
approach would hand even greater profits to today's big polluters
through delayed and weak action, meaning that all Australians will be
paying a huge ecological and economic price for today's inaction.

"A slow start to emissions trading, with a low price and lax targets
means that the next government will have no choice but to impose major
shocks and dislocation on the economy in order to meet more stringent
targets even faster, remembering that the IPCC says global emissions
must peak by 2015.

"Economic modelling released this week by the Climate Institute is the
most recent in a long line demonstrating that taking fast and early
action is cheaper, more economically efficient and more environmentally
effective than delaying action.

"This is a Howard Government dog-whistle to the big polluters,
particularly the coal and aluminium industries, giving the signal 'Vote
for me and there won't be any action for five years, and when I do act
you will be sheltered and compensated.' It should fill the Liberal Party
coffers accordingly.

"Given the make up of the Task Group - representatives of the biggest
polluters, ably assisted by bureaucrats under the PM's direction - and
given that its terms of reference required it to protect the coal and
uranium industries at any cost, this report is no surprise.

"The Task Group has failed to recommend a scheme which would put
Australia on track to meet science-based emissions reduction targets and
keep global warming to less than 2C. Instead, it recommends weak targets
for the future and none at all in the short term.

"The Task Group has failed to apply the polluter pays principle,
instead, setting the scene for a massive windfall gain to big polluters
through 'grandfathering' of free emissions permits. In addition, the
Task Group recommends handing any funds from the first phase back to the
big polluters for "low emissions technology", which is Howard code for
the unproven, expensive and high-risk coal with geosequestration.

"The Task Group has failed to provide investors with the confidence they
need for long-term investment decisions, instead leaving more years of
uncertainty and the clear presumption that a future government will have
to make radical changes to make the scheme effective and efficient.

"Mr Howard paints himself as a responsible guardian of the economy, but
his hand-picked Task Group has demonstrated that he is economically
reckless. His only aim is to protect profits today even though that will
have massive economic impacts after he is gone."

Contact Tim Hollo on 0437 587 562

Notes:

Terms of Reference

The following Terms of Reference were announced by the Prime Minister on
10 December 2006:

" Australia enjoys major competitive advantages through the possession
of large reserves of fossil fuels and uranium. In assessing Australia's
further contribution to reducing greenhouse gas emissions, these
advantages must be preserved.

Against this background the Task Group will be asked to advise on the
nature and design of a workable global emissions trading system in which
Australia would be able to participate. The Task Group will advise and
report on additional steps that might be taken, in Australia, consistent
with the goal of establishing such a system."

Task Group Members

The Task Group will be chaired by Dr Peter Shergold
Secretary, Department of the Prime Minister and Cabinet.

Mr David Borthwick: Secretary, Department of the Environment and
Heritage

Mr Peter Coates: Executive Committee Member, Xstrata

Mr Tony Concannon: Managing Director, International Power

Dr Ken Henry: Secretary, The Treasury

Mr Russell Higgins: Non-Executive Director, Australian Pipeline Trust

Ms Margaret Jackson ;Chairman, Qantas

Mr Michael L'Estrange: Secretary, Department of Foreign Affairs and
Trade

Mr Chris Lynch: Executive Director, BHP Billiton

Mr John Marlay: Chief Executive Officer, Alumina Limited

Mr Mark Paterson: Secretary, Department of Industry, Tourism and
Resources

Mr John Stewart: Managing Director, National Australia Bank

The Secretariat: A joint government business Secretariat has been
established to support the work of the Task Group and is headed by Dr
Martin Parkinson, Deputy Secretary, The Treasury.


Tim Hollo
Media and Communications Adviser
Senator Christine Milne
Phone: + 61 (0) 2 6277 3063
Mobile: + 61 (0) 437 587 562
Email: tim.hollo at aph.gov.au
Skype: timhollo
Website: www.christinemilne.org.au