Natasha Griggs (Solomon, Country Liberal Party) Share this | Hansard source

I rise today to take a stand on behalf of the people of Darwin and Palmerston and put on the record my support for the Abbott government's bill to reduce Territory bills. The Abbott government is committed to scrapping the carbon tax and we will do everything in our power to see this through. Those on the opposition benches know September's federal election was a mandate to scrap the carbon tax, to reduce costs for business and households, boost jobs and manufacturing, and restore Australia's international competitiveness.

Once the tax has been axed, Territorians can expect a reduction of average costs of living across all households of around $550 during the 2014-15 financial year according to Treasury modelling.

This government takes its election commitments seriously, and we will follow through with what we said—that is, that we will axe the tax. We have already delivered on our promise to make the first item of legislative business in the new parliament the carbon tax repeal bills, and the Australian people know they can trust us at our word and we do what we say.

Last month, the coalition government asked for public consultation on the carbon tax repeal bills to keep in line with our election commitment. Unlike Labor, the coalition engaged in proper consultation, as does any good government, to better understand whether the draft legislation should be further refined before being introduced into the parliament. We received hundreds of submissions.

One of those worth particular mention is a joint submission from the Minerals Council of Australia in the Northern Territory division. The first paragraph of this submission shows full support for the coalition's plan.

It states:

The repeal of the Clean Energy Act is an important first step in the development of a better, more sustainable climate change policy for Australia. The Australian minerals industry welcomes The Clean Energy Legislation (Carbon Tax Repeal) Bill.

It goes on:

The Clean Energy Act, referred to as the “carbon tax”, puts a deadweight on the Australian economy. It placed a burden of about $1.2 billion on the minerals sector alone last year, an impost on a scale faced by none of Australia’s minerals export competitors.

…   …   …

This burden comes for no material environmental dividend.

Repeal of the Clean Energy Act is necessary because it is a poorly designed response to the policy challenge. The minerals industry looks forward to engaging in the process of designing the Direct Action scheme to provide for a more efficient and effective approach.

If the Territory's minerals industry is suffering under Labor's carbon tax then that has a flow-on affect in terms of economic growth, jobs and prosperity.

Conoco Phillips, operators of Darwin's LNG plant, also lodged a submission. Jack Griffin, Conoco Phillips vice president of Legal and Corporate Affairs says:

ConocoPhillips recognises and preferences the Government's clear intention to repeal legislation ahead of the effective date June 30th, 2014. However, where this is not possible ... ConocoPhillips supports the Government's position on retrospective repeal'.

The two Territory Labor federal members, the member for Lingiari and Senator Nova Peris, need to listen to these organisations and consider the impact on the economy and on jobs of the carbon tax and support the government's repeal legislation. If they really do want to stand up for the Territory, then they should join us and axe the tax. Territorians are paying for Labor's tax failures and they need their parliamentary representatives to stand up and say enough is enough.

Even before implementation of the carbon tax in 2012, the Minerals Council warned:

… at least 1500 Northern Territory businesses face a new 6.2 cents per litre tax on fuel under the Gillard Government's carbon tax.

Additionally they said:

… analysis of national taxation statistics shows that the proposed carbon tax on fuel will impose an immediate direct cost on more than 60,000 individual businesses nationwide , not just 400-500 'big polluters' as claimed by the Government.

In the Territory, we have experienced price hikes of 10 per cent to our power bills since the tax was introduced. Small business has been hit even harder than domestic users, because they pay a higher tariff than households. Local government has also been hit hard. The City of Darwin pointed the finger fair and square at the carbon tax when announcing a hike in rates and rubbish collection costs. In the 2012-13 budget, the City of Darwin increased rates by 4.5 per cent, and garbage and recycling collection fees increased by a massive 17 per cent. Overall an average household paid 6.3 per cent more in council fees than the year before all because of the carbon tax.

A local air-conditioning company servicing Darwin and Palmerston has told my office the cost of replacing the refrigerant gas in a domestic air conditioner has increased from about $25 a kilo to about $100 a kilo since the carbon tax kicked in. That is an increase that business would have never seen coming and one the average consumer has to swallow.

NT Ice in Berrimah is a major supplier of frozen water in the Territory. Its operator, Michael Goonan, tried to absorb the price increases that resulted from the hike in electricity prices caused by the carbon tax. He even spent $50,000 installing a 24-kilowatt solar system at his plant. His applications for assisted government funding were knocked back by the same Labor government that introduced the carbon tax to encourage alternative energies.

Then there is the case of Territory auto air-conditioning company who have also taken a carbon tax hit. In one case Top North Auto Air-conditioning wrote to its clients about an impending price increase. The letter said:

As one of your suppliers in air-conditioning system repair and re-gassing I must write to you today to advise of imminent refrigeration gas price increases. As part of the Gillard Government Carbon tax Scheme refrigerants will attract a new tax.

This scheme is to be introduced on July 1st 2012 and will see un-paralleled price rises, with increases yearly as the carbon tax price ratchets up annually.

R134a refrigerant for air conditioning systems in vehicles is expected to increase approximately 300% initially. R404 refrigerant for fridges/freezers et cetera is expected to rise approximately 400-500%. These massive input price increases cannot be absorbed by Top North Auto Air and will have to be passed on to consumers.

Territorians were hit again.

When the carbon tax first began in July 2012, the then shadow environment minister, now Minister Greg Hunt, visited the electorate of Solomon where he saw firsthand how local business were being affected and how they were losing money right from the word go. During his visit, Minister Hunt met with local business owner Mick Burns. Mick is a well-known businessman who, among other interests, has a crocodile farming business. At the time, Mick had around 60,000 to 70,000 crocodiles to feed and care for. He was quoted as saying: 'Given the tyranny of distance, we have to freight the majority of our feed up. Our feed goes up to about 65 tonnes a week for crocodiles. My food bill out there is close to $3 million a year. When you get a six to seven per cent price increase, it's a pretty hefty cost. I've got long-term overseas contracts that I can't increase. I can't pass on that cost. I've got to wear that cost.'

Mick was unable to pass any of those immediate costs on as he had fixed contracts, which did not allow for a carbon tax price hike during the middle of the year. This was a huge hit to Mick's hip-pocket, a cost that he will never be able to recover. Crocodiles are big business in the Territory and the carbon tax has had an indirect but very real flow-on effect to producers like Mick Burns, who help support the livelihoods of hundreds of people in the Top End. All this pain for nothing.

The carbon tax has not actually done what it promised to do—that is, clean up our environment and reduce CO2emissions. Instead of cleaning out the environment, the carbon tax is instead cleaning out the wallets of Territorian families. That is not good enough. I will not stand by and let this happen. I know my colleague and friend Senator Scullion will be voting to get rid of the tax. We want to know whether the member for Lingiari and Senator Peris will vote to axe the tax.

See this speech in context