Housing and carbon in Labor’s roundtable mix

The Albanese government’s economic reform roundtable next month will consider a raft of new housing reforms and carbon pricing options.

Housing reforms and carbon pricing will be on the agenda of Labor's economic reform roundtable.

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Jim Chalmers’ economic reform roundtable next month will consider a raft of new housing reforms and carbon pricing mechanisms being pushed by industry, with one of the biggest opponents of the Rudd government’s carbon tax – Housing Industry Australia – still open to changes.

While the HIA made its submission to the roundtable before this Friday’s deadline, the Productivity Commission has had at least nine proposals – from the cement industry to mining giant Rio Tinto – arguing for the need for carbon price mechanisms.

Treasury will release white ­papers in the lead-up to the roundtable on key areas it thinks reform outcomes could be achieved.

HIA has called for a full “moratorium” on any new regulatory measures and funding for the establishment of a new national body to drive comprehensive reform of the planning system, as well as the development of a new visa program for in-demand trades. This would include a commitment to fund the development of a construction trade contractor visa, and demand that prefabrication modular homes be acceptable forms of housing.

The HIA, which was part of a campaign against the carbon tax under the Rudd/Gillard governments, did not take a position on carbon pricing in its submission. CEO Simon Croft left the door open to carbon mechanisms. “Australia’s energy policy must be reoriented to enable, not inhibit, the energy transition, with a focus on reliability, affordability, and investment certainty,” he said.

Submissions to the PC have largely been in support of market-based mechanisms to reduce emissions. The Cement Industry Federation backed the introduction of a carbon border adjustment mechanism in its submission, saying it would have a “positive impact” on the economy so that resources would not be unnecessarily shifted to jurisdictions without a carbon price.

The Australian Logistics Council called for a “refined application” of the Safeguard Mech­anism to reflect “sector realities, such as long asset lifespans and limited liability of zero-emissions alternatives”.

The Safeguard Mechanism forces the nation’s 215 biggest-emitting facilities to slash pollution by nearly 5 per cent each year to 2030.

The Australian Council of Superannuation Investors said the government should consider whether to capture more emitters under the Safeguard Mechanism and to introduce a border carbon adjustment mechanism.

Utilities company Engie said “enduring, broad-based market mechanisms are one of the better ways for governments to work with industries to reduce carbon emissions”.

Renowned economist Ross Garnaut’s think tank, Superpower Institute, said carbon pricing was the “most efficient way” to drive down greenhouse gas emissions.

Specifically, its submission called for “carbon pricing mechanisms at the social cost of carbon, as well as a carbon border adjustment mechanism compatible with international systems”.

“Utilising the most efficient policy instruments gives Australia the best chance of leveraging its comparative advantages, addressing this market failure effectively, and enhancing Australia’s productivity,” it states.

Rio Tinto has already called for carbon pricing in its submission to the PC.

Last week, former Treasury secretary Ken Henry, who designed the Rudd government’s carbon tax, said the tax should be front and centre.

“Why the hell did we ever drop it?” he said. “It still boggles the mind that we had the world’s best carbon policy, and then, for purely political reasons, decided that we could afford to do without it.”

A host of Treasury officials who worked on the carbon tax during the Rudd and Gillard governments are now in key positions.

These include Meghan Quinn, who worked in early development of the scheme through climate modelling at Treasury and is now ­secretary of the Department of ­Industry, Science and Resources, and Jenny Wilkinson, who worked in department of climate change and energy and is now the Treasury secretary.

Deputy Opposition Leader and Treasury spokesman Ted O’Brien, who will attend the federal government's roundtable in August, said if Labor accepted the industry submissions for carbon pricing it would need to explain any costs for consumers.

“If Labor now wants to introduce a carbon tax, it can start by explaining how it will improve the living standards of everyday Australians who are already struggling to make ends meet,” Mr O’Brien said.