LAURA JAYES: Energy Minister Angus Taylor - good to see you. This BAEconomics modelling, does it fit with your own modelling?

ANGUS TAYLOR: Look, it is very clear - it fits with modelling in the past. The Climate Change Authority did modelling commissioned by Labor actually, back in 2012-13 - very consistent, $6000 hit to wages; a carbon price for $135; a large increase - 78 per cent increase in electricity prices. That was commissioned by Labor. So this modelling is very much in sync with what we've seen in the past and the real issue here, Laura, is that Labor hasn't come clean on the impact of their 45 per cent emission reduction target. Australians deserve to know what that will do, not just to the overall economy - 336,000 jobs, $9000 hit to wages according to this independent modelling. But also what it will do down at the sector level, what will it mean for farmers? What will it mean for tradies? Labor has said they're going to have a vehicle emissions standard of 105 grams per kilometre, well there's no vehicle a tradie drives that gets even close to that. What will it do to manufacturing? What will it do to our big export sectors? I mean Richard Marles belled the cat yesterday; he came clean-

KIERAN GILBERT: So when-

ANGUS TAYLOR: He said it was wonderful to-

KIERAN GILBERT: So you said that Bryan Fisher is on the mark with Labor's analysis and as Simon Benson reports today in the front of The Australian, the Coalition's commitment up to 28 per cent would come at a cost of $70 billion in cumulative economic losses and a 2 per cent hit to real wages growth and 78,000 fewer jobs as the economy adjusted. Is that accurate?

ANGUS TAYLOR: We have come clean. We've always been upfront about what our policies are-

KIERAN GILBERT: So that ballpark is right?

ANGUS TAYLOR: Let me finish, Kieran. What we have said always that this is not cost-free. The Emission Reduction Fund for instance, which has been a centrepiece of our policy in this area, and continues to play an important role - it's not free. Nothing in this space is free but we have made clear - we've demonstrated over a million jobs since we've been in government, and we committed to 1.25 in the coming five years. We are very confident that we can have a balanced policy, a 26 per cent target, alongside very strong economic growth that supports health and education and disability services and so on. Now, that's a stark contrast to a 45 per cent target, which is a much, much bigger target - which as the Business Council of Australia says is an economy wrecking target. Labor needs to come clean on the impact and importantly, the detailed policies right down that those sector levels and the impacts those policies are going to have - they haven't done that.

LAURA JAYES: I'm glad you brought up the Business Council actually because they've been the most critical voice to your big stick legislation. So without that, do you even have a policy? Are you going to go through with it?

ANGUS TAYLOR: There's two different things here - one is the climate policies, which is what we're talking about today, and what this independent modelling is saying, consistent with modelling in the past, is that it will be economy wrecking. What you're talking about is getting electricity prices down. One key thing to get electricity prices down is to not have a 45 per cent emission reduction target because as this modelling tells us it will increase electricity prices by 58 per cent. The Climate Change Authority itself said that it would increase by 78 per cent – it is a big number either way. And that we won't do.

KIERAN GILBERT: I was wondering how you see this playing - I mean you criticise Richard Marles and obviously the Labor target generally but you worked in business for many years and in this space for a long time as well. Glencore yesterday put a cap on their investment in coal, for example.

ANGUS TAYLOR: Sure.

KIERAN GILBERT: Isn't this something that's happening inevitably in terms of where the market, the money is going?

ANGUS TAYLOR: Yes, but Glencore is not going to decimate its coal business, it's not going to do what this modelling-

LAURA JAYES: But they're pulling back aren't they?

ANGUS TAYLOR: This modelling requires, this 45 per cent target, requires a decimation of industries like our most successful export industry and as Richard Marles said yesterday, Labor thinks this is wonderful. They think it’s wonderful - 55,000 jobs - losing those is wonderful. This is where Labor has to come clean, they've gotten away with this for too long. The Australian voters deserve to know, as they go into an election, what Labor's policies are - what the impacts will be. There's a very clear choice here between our target - it's achievable, it's sensible, it's not cost-free but we can continue to create jobs versus Labor's.

LAURA JAYES: Well is it sensible, Minister, to be underwriting new coal with taxpayer funds when private companies like Glencore, as you just admitted, are pulling back on their coal production? They're not decimating it but they're certainly pulling back.

ANGUS TAYLOR: They're not pulling back, they're not pulling back. They've - look, they believe as we do, that balance is the answer here. You need to have a balance of fuel sources.

LAURA JAYES: But when private companies are pulling - they are pulling back - when private companies are pulling back and you're talking about underwriting new coal, there's no synergy there, isn't it?

ANGUS TAYLOR: Hang on. They're not pulling back - they have said that they're going to keep their coal production stable. This is an industry that will be around for a long while - it's true, it's true.

LAURA JAYES: But you're talking about increasing new coal - bringing new coal projects.

ANGUS TAYLOR: Let me finish. They are keeping coal going - it will be part of the balance for many, many years to come. That balance is the key here and we believe in balance whether it's in what we have now in the system, what we'll have in the future. There will be a natural transition but balance is the answer to this. What we don't have from Labor with 45 per cent emission reductions is a balanced target. It is not a balanced target and they need to come up front and explain to the Australian people the impacts of this economy wrecking target.

KIERAN GILBERT: Well, we've got balance with your appearance twice in a week. See you soon.

ANGUS TAYLOR: It's been a delight.