OPPOSITION EMBARRASSINGLY WRONG ON KEY CPRS PRINCIPLE
Shadow resources minister Ian Macfarlane and shadow emissions trading minister Andrew Robb have asserted that the CPRS bill requires Australian coal producers who sell coal directly to Japan to pay for the emissions for the burning of that coal in Japan.

Ralph Hillman of the Australian Coal Association repeated this point on radio this morning.

The suggestion that coal exporters will be liable for emissions that occur outside Australia is utter nonsense.

A supply of fuel that does not occur within the geographical reach of the bill – which covers Australia, the external territories, the exclusive economic zone and the continental shelf – will not result in a liability under the scheme.

This follows from a basic principle of legislative interpretation and the Acts Interpretation Act 1901.

This means that when a coal producer directly exports coal to Japan, or any other country, there is no liability under the CPRS bill for emissions embodied in that coal.

In addition, when fuel is delivered to an export customer in Australia – for example, at a wharf – the emissions do not count towards the supplier’s liability, as long as they have documentary evidence that the fuel was exported.

Coal producers will not need an intermediary to avoid liability for coal that is exported.

This is a deliberate effort from the Opposition to mislead the Australian people on this important reform on climate change.