Senate debates

Monday, 14 July 2014

Questions without Notice

Carbon Pricing

2:02 pm

Photo of Lisa SinghLisa Singh (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary to the Shadow Attorney General) Share this | | Hansard source

My question is to the Minister representing the Prime Minister, Minister Eric Abetz. I refer to the government's agreement to include a so-called price pay-through mechanism in its carbon price repeal legislation. Has a regulatory impact statement been undertaken? And how many entities will be subject to this new regulatory regime?

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | | Hansard source

The honourable senator asks about a very important piece of legislation which, hopefully, will come back before the Senate later this week and that is a pack of legislation which will, once and for all, remove the toxic carbon tax from Australia's economy.

In relation to a regulatory impact statement to the specific amendments, I would anticipate that no such regulatory impact statement has been undertaken. But in relation to the other part of the honourable senator's question as to, I think, how many entities might be impacted, from recollection—and if I need to correct this after question time, I will—about 60 entities will be impacted.

But let us make no mistake that the amendments to which the honourable senator refers relate to a package of bills on which 66 of the 76 senators in this place were elected on, namely, the repeal of the carbon tax. I think one of those 66 had a nuanced position about the repeal and Direct Action. So even if we were to have—

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | | Hansard source

A nuanced position! It's a pity they didn't tell you about that.

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | | Hansard source

I am referring to Senator Xenophon. Don't open your mouth when you do not know what the debate is about, Senator Carr. You, Senator Carr, went to the election with this brochure, which told us that Kevin Rudd and Labor removed the carbon tax. Well, they did not.

Senator Singh went to the election in 2010, saying 'No carbon tax,' and went to the election in 2013, saying, 'We will remove the carbon tax.' We would invite Labor to join us in that task and repeal the carbon tax. (Time expired)

2:05 pm

Photo of Lisa SinghLisa Singh (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary to the Shadow Attorney General) Share this | | Hansard source

Mr President, I ask a supplementary question. We would invite the government to join us in ensuring that an emissions trading scheme starts in this country—

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

The question, Senator Singh.

Photo of Lisa SinghLisa Singh (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary to the Shadow Attorney General) Share this | | Hansard source

I refer to the commitment made by the Prime Minister's parliamentary secretary, Mr Frydenberg, on 26 March this year:

… genuinely consult with those parties who are most affected by any new regulation.

Can the minister outline the consultation process on the government's price pass-through mechanism?

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | | Hansard source

First of all, can I inform the honourable senator that, even with my reading glasses on, I cannot see in this brochure, when referring to the removal of the carbon tax, that it was subject to an ETS being implemented. You left that out somewhere in the fine print.

Photo of Claire MooreClaire Moore (Queensland, Australian Labor Party, Shadow Minister for Women) Share this | | Hansard source

Mr President, my point of order is on direct relevance. We are talking about a consultative process. The minister has come nowhere near that in his answer.

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

The minister has so far had 15 seconds to answer the question. I remind the minister of the question.

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | | Hansard source

I am sure Senator Singh well recalls the introduction to her question, which one is allowed to address, suggesting that somehow there was this caveat on the repeal of the carbon tax, conveniently not mentioned in the Labor Party's propaganda. So let's be very clear in relation to the Labor Party's stance on this: flip, flop, flip, flop, saying—

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Pause the clock.

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Leader of the Opposition in the Senate) Share this | | Hansard source

Mr President, the minister was asked about the consultation mechanism process and the government's price pass through. He has not answered that question.

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

There are 17 seconds left remaining to answer the question. I remind the minister of the question.

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | | Hansard source

The difficulty the Labor Party has is, when you have smart alec introductions to your question, the minister is entitled to respond.

Photo of Claire MooreClaire Moore (Queensland, Australian Labor Party, Shadow Minister for Women) Share this | | Hansard source

Mr President, I rise on a point of order.

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

Pause the clock.

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | | Hansard source

But in relation to the specifics—

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

I have paused the clock, Minister. Senator Moore, there is eight seconds left, and I think you could hear the minister was getting to the answer. Do you still want to pursue it?

Photo of Claire MooreClaire Moore (Queensland, Australian Labor Party, Shadow Minister for Women) Share this | | Hansard source

I just wanted to make sure the minister was getting close there, Mr President.

Photo of Stephen ParryStephen Parry (President) Share this | | Hansard source

I will not take it as a point of order at this point in time. Minister, you have eight seconds remaining.

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | | Hansard source

Just learn how to draft your questions and you will be a lot better off. Can I say that we have consulted with relevant business organisations to ensure that the flow-through will be effective. (Time expired)

2:07 pm

Photo of Lisa SinghLisa Singh (Tasmania, Australian Labor Party, Shadow Parliamentary Secretary to the Shadow Attorney General) Share this | | Hansard source

Mr President, I ask a further supplementary question. I ask again: can the minister outline that consultation process on the government's price pass-through mechanism? I also ask: can the minister confirm that its proposed pass-through laws will apply only to electricity and energy suppliers and not to grocery and other major retailers?

2:08 pm

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | | Hansard source

It stands to reason, with my answer previously, that, if it only applies to about 60 entities, it will not apply to those to which the honourable senator has just referred. I would have thought that would be pretty obvious in relation to my previous answer. But that is one of the difficulties when you have prewritten supplementaries without listening to the answer.

Photo of David FawcettDavid Fawcett (SA, Liberal Party) Share this | | Hansard source

My question is also to the Leader of the Government in the Senate, Senator Abetz. Is the minister aware of strong support in the community and by business for repealing the carbon tax?

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | | Hansard source

There is a loud, consistent and very sound chorus of voices from the Australian community calling for the world's biggest carbon tax to be repealed. It is time for the Senate to heed those voices. The government, in its endeavour to repeal the carbon tax, has received support from many quarters, be it the Australian Chamber of Commerce and Industry or the National Farmers' Federation, from BlueScope Steel to Wesfarmers. But, more importantly than those with potentially a particular interest, over 10 million Australians voted for a variety of political parties all committed to the repeal of the carbon tax—and one of those political parties was the Australian Labor Party. At the last election, even Labor pretended that they had repealed the carbon tax.

This morning, Gary Heilmann, a fishing business operator, told his fellow Australians, courtesy of the ABC, of the carbon tax impost on his operation:

The carbon tax alone cost us around about $30,000 per year here. Plus the other major impact was the $72 per kilo that it added to the refrigerant gases that we use for our refrigeration plants, both on the boats and in the factory.

He went on:

Effectively we went from a situation where a failure on a boat or piece of equipment would cost $2000 worth of refrigerant, to … $10,000 every time.

Photo of Kim CarrKim Carr (Victoria, Australian Labor Party, Shadow Minister Assisting the Leader for Science) Share this | | Hansard source

So his prices are going to come down now?

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | | Hansard source

In relation to prices coming down, he also said this:

Qantas has been the first cab off the rank. They have written to us and advised us that, effective the first of July, they are taking the carbon tax surcharge off our freight …

Showing that there will be a flow-through for all businesses. (Time expired)

2:10 pm

Photo of David FawcettDavid Fawcett (SA, Liberal Party) Share this | | Hansard source

Mr President, I ask a supplementary question. Will the minister outline the benefits of repealing the carbon tax for families, businesses and the economy?

2:11 pm

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | | Hansard source

I thank Senator Fawcett and understand his longstanding interest in the cost of living, especially for families in Australia. Repealing the carbon tax is the single most important act the Senate can perform to take pressure off families, save Australian jobs and strengthen the economy. If the Senate repeals this toxic tax, it will save the Australian economy from a $9,000 million jobs-destroying sledgehammer. Removing this tax will take the pressure off business and secure jobs. It will also deliver average savings of $550 per year to each and every household across the nation, according to Labor's own Treasury costings whilst they were in government. This carbon tax hurts jobs, hurts families and does nothing for the environment, and that is why the government is committed to its abolition.

2:12 pm

Photo of David FawcettDavid Fawcett (SA, Liberal Party) Share this | | Hansard source

Mr President, I ask a further supplementary question. Will the minister advise the Senate whether there are other measures that senators will be asked to agree to in order to build a strong and prosperous economy and a safe, secure Australia?

Photo of Eric AbetzEric Abetz (Tasmania, Liberal Party, Minister for Employment) Share this | | Hansard source

The government is seeking to implement its legislative agenda that will strengthen our economy, attract investment and create more jobs for more Australians. Part of that agenda is the re-establishment of the Australian Building and Construction Commission, to improve productivity in our building industry. We also have reforming the Qantas Sale Act, to level the playing field in our aviation industry; abolishing the mining tax, to restore the international competitiveness of our resource industry; and repealing over 1,000 spent and redundant pieces of legislation across 10 portfolios, to cut red tape for businesses across Australia. The reason we are pursuing all these economic reforms is so that we can win not some academic prize in economics but the prize that is the social dividend of jobs and security that will flow to our fellow Australians. (Time expired)