Mrs Bronwyn Bishop (Speaker) Share this | Link to this | Hansard source

The original question was that these bills be now read a second time. To this the honourable member for Port Adelaide has moved as an amendment to the Clean Energy Legislation (Carbon Tax Repeal) Bill 2013 that all words after ‘That’ be omitted with a view to substituting other words. If it suits the House, I will state the question in the form: that the amendment be agreed to. The question is that the amendment be agreed to.

Natasha Griggs (Solomon, Country Liberal Party) Share this | Link to 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.

Warren Snowdon (Lingiari, Australian Labor Party, Shadow Parliamentary Secretary for External Territories) Share this | Link to this | Hansard source

The answer is no.

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

No. The member for Lingiari is going to be letting Territorians down. Domestic emissions under the carbon tax continue to rise. It has completely failed to do the job it set out to do. The previous government's own modelling, which it submitted to the United Nations Framework Convention on Climate Change, shows that under the carbon tax our emissions would increase from around 560 million tonnes in 2010 to 637 million tonnes in 2020. It is estimated that the carbon tax will accrue at least $10 billion over two years with domestic emissions not falling but rising. By any measure, this is yet another bungled policy from Labor that was orchestrated by the Greens over there on the crossbenches. It was swallowed up in desperation by former Prime Minister Julia Gillard and hung around the neck of all Australians, just to keep Labor in power.

Meanwhile, countries around the world are reducing their emissions through policies that provide direct incentives to adopt new technologies that reduce emissions or improve energy efficiency. The coalition government will focus on measures that will actually cut emissions like reafforestation, cleaning up power stations, cleaning up waste landfill and waste coalmine gas.

The Labor Party would rather burden families and businesses with an economy-wide tax that fails to reduce emissions and sends industry offshore. Around the world, other countries are taking direct-approach initiatives, including direct abatement purchasing; renewable energy targets; energy efficiency measures; appliance, building and vehicle fuel efficiency standards; and measurers in the agriculture, forestry and land sectors. It seems the Labor Party thought they knew best and went directly against the grain and against the advice of industry experts and world leaders. But this is what we are beginning to expect from those on the opposition benches—radical ideas with no community or industry consultation.

I am here to stand against that, to stand up and say no to a tax that is fleecing Territorians of their hard earned money. The member for Lingiari has said that he will not be supporting the removal of the tax. I hope that Senator Peris, who said that she will be standing up for Territorians, will vote with us to axe the tax. Territorians have said to me that they do not want this tax. Senator Peris, stand with me and vote for real change to tackle climate change, with proven measures and real results. Do not stand in the way of a fair go for Territory businesses. Do not stand in the way of jobs like the member for Lingiari is. Do not stand in the way of economic growth. Most of all, do not stand in the way of what Territorians want. They want us to axe the tax so get on board, member for Lingiari.

Graham Perrett (Moreton, Australian Labor Party) Share this | Link to this | Hansard source

This is a classic moment in the history of Australia. It illustrates the divide between the two parties who make up this great Westminster tradition. Australia is being asked to make a decision between advice being given by the devil on one shoulder and the advice of the angel on the other. The devil on one shoulder is saying loudly: 'Think of yourself. Every Australian should think of yourself. You don't have to worry about the collective. You don't have to worry about your children. You definitely don't have to worry about your grandchildren or the rest of the region'—even though we are surrounded by islands that are low-lying. The angel on other shoulder is saying to Australians: 'You should think of others. You must think of others. Not only should you think of others because it is the moral thing to do and the right thing to do; it makes economic sense to think of others. It makes sense because it will be cheaper to act now rather than to act later.' This is the classic moral divide.

Former Prime Minister Rudd did get it right: this is the greatest moral challenge of our time, where we are asking people either to be selfish, think of their wallets and themselves, or to think of the collective, their nation and the world. We will grapple with those two voices. The devil on one shoulder is saying, 'Think of yourself'—a voice taken up by those opposite and run with ever since 2 December 2009, when the then backbencher, the member for Warringah, by one vote became the Leader of the Opposition on an anti climate change action ticket. That was the classic moment when the future of Australia turned. Then, I think it was the very next day, we had the Senate vote on the ETS and we saw two brave Liberal senators cross the floor against the will of Tony Abbott. If the Greens had voted with Labor on that day we would have had an ETS on 3 December 2009.