E&OE...
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The Australian economy is in robust health. Australians have every reason to believe that our economy will remain strong for years into the future provided it is well managed.
There is however one dark cloud on our economic horizon. That dark cloud is the potential mismanagement of Australia's response to climate change.
If we don't get this response right then the economic consequences will be severe.
If we overreact the economy will be damaged and jobs lost. Equally we must maintain a strong response so that Australia can play her part in the world wide effort to reduce greenhouse gas emissions.
It is fundamental to any response both here and elsewhere that a price be set for carbon emissions. This is best done through the market mechanism of an emissions trading system. That is why last December I established a Joint Government-Business Task Group to advise on the form an emissions trading system might take in Australia.
That report will be received by the Government this week. The decisions to be taken on this issue will be the most crucial economic decisions facing Australia in the next decade.
It is essential that we strike the right balance. Skilled and careful economic management is required.
Whilst the issue itself is environmental, the character of the decisions to be taken are overwhelmingly economic.
If Australia is to adopt an emissions trading system, it must be one compatible with the special economic circumstances of this nation including our huge endowment of fossil fuels. It must be one that does not disadvantage us within the world trading system.
This issue must be managed in a way that preserves our economic strengths and advantages.
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Listen to this Speech (MP3 - 1.84Mb - 120secs)