Senate debates

Tuesday, 21 August 2012

Questions without Notice

Carbon Pricing

2:13 pm

Photo of Simon BirminghamSimon Birmingham (SA, Liberal Party, Shadow Parliamentary Secretary for the Murray Darling Basin) Share this | | Hansard source

My question is to the Minister representing the Minister for Climate Change and Energy Efficiency, Senator Wong. I refer the minister to reports in our hometown paper, the Adelaide Advertiser, that indicate local footy clubs are facing a $30,000 to $50,000 a year increase in their electricity bills, partly as a result of the carbon tax.

Government Senators:

Government senators interjecting

Photo of Simon BirminghamSimon Birmingham (SA, Liberal Party, Shadow Parliamentary Secretary for the Murray Darling Basin) Share this | | Hansard source

That's not my care, that one—

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order! Can we leave the football season alone? Senator Birmingham.

Photo of Simon BirminghamSimon Birmingham (SA, Liberal Party, Shadow Parliamentary Secretary for the Murray Darling Basin) Share this | | Hansard source

Thank you, Mr President. It says they are facing a $30,000 to $50,000 increase in their electricity bills, partly as a result of the carbon tax, and that as result they may need to axe or reduce their involvement in programs that promote community and school involvement in sports. I ask the minister: is the government providing any direct assistance under its carbon tax package to the West Adelaide Football Club, Central Districts Football Club or South Adelaide Football Club to assist with their increased costs and ensure they are not reducing local community programs?

2:14 pm

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

Can I take this opportunity to congratulate Senator Birmingham on his appearance on Q&A for the first time last night. I have to say, judging from—

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Senator Wong, come to question.

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

I will come to the question. I just thought that the chamber should be aware that I think he did very well. I suspect, however, from the tweets, that Senator Cameron might have bested him. I am very happy to take a not entirely unexpected question from Senator Birmingham. As he would know—and he was careful to word his question perhaps a little more subtly than Senator Joyce would have been capable of—it is misleading to attribute the entire electricity price rise experienced by clubs or in fact any other entity to the carbon price. I am advised that the Minister for Climate Change and Energy Efficiency's office spoke to West Adelaide Football Club this morning, who confirmed that around half of the price rise quoted today was due to network costs.

It is the case, and this government has been—

Senator Abetz interjecting

I will take the interjection, because—

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order! Ignore, the interjection, Senator Wong.

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

But, Mr President, it is so tempting!

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

It might be tempting, but address the chair and address the question.

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

Through you, Mr President, as I said, it is misleading—

Opposition senators interjecting

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order! Senator Wong is entitled to be heard in silence.

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

It is misleading to attribute the entire price rise to the carbon price. I would point out two things. One is that the Treasury modelling did estimate the impact of the carbon price on sport and recreation at about 0.3 per cent. That is about 20c a week. That did include the impact on football clubs. The government did assume cost pass-through in its assessment of the Household Assistance Package, which provides, as the chamber would know, about $10.10 in assistance through tax cuts and increased transfer payments. In addition, football clubs may be eligible to apply for the Community Energy Efficiency Program, a $200 million funding stream for community organisations to retrofit facilities.

2:16 pm

Photo of Simon BirminghamSimon Birmingham (SA, Liberal Party, Shadow Parliamentary Secretary for the Murray Darling Basin) Share this | | Hansard source

Mr President, I ask a supplementary question. I refer the minister to reports from last week, also in the Advertiser, that indicate the Belair Hotel has faced a 45 per cent jump in the off-peak component of its monthly power bill due to the carbon tax, resulting in a rise in costs of more than $4,000 for July alone, partly attributable to the carbon tax, which is impacting on its ability to sponsor or support community events. Is the government providing any direct assistance to any South Australian hotel or club to meet their additional carbon tax costs and to support the maintenance of community programs?

2:17 pm

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

This question was asked last week by the member for Boothby, and a number of us know the Belair Hotel reasonably well. I think Senator McEwen might know it pretty well, to be honest with you; she still lives up in the hills. I understand from the information that was provided as a result of the member for Boothby's question that, of the increase in that off-peak rate to which the senator referred, the overall carbon price effect was less than 10 per cent of the overall electricity bill. There were significant increases in network charges, which, I am advised, added over $1,300 a month to the hotel's electricity costs. So, again, this is another one of those situations where the carbon impact is a particular amount. The government has assessed that in terms of its assistance to consumers, but of course there are obviously substantial increases driven by network costs.

2:18 pm

Photo of Simon BirminghamSimon Birmingham (SA, Liberal Party, Shadow Parliamentary Secretary for the Murray Darling Basin) Share this | | Hansard source

Mr President, I ask a further supplementary question. Given the minister has failed, despite all of Labor's rhetoric about carbon tax compensation, to identify one piece of assistance given to local footy clubs, other clubs generally or pubs in her home state, will the minister confirm that these organisations simply have to wear the costs associated with Labor's carbon tax? Isn't it an inevitable consequence of the increased carbon tax costs that support for worthwhile local community programs by these clubs will be reduced?

2:19 pm

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

I do not agree with the premise of the question, and that was not the answer I gave. The difficulty is that Senator Birmingham is writing the questions before he hears the answers and is writing the questions with complete disregard for the facts. He might want to know that over 300,000 pensioners in South Australia will receive an additional $338 extra per year if they are single and up to $510 per year for couples combined in their pension payments, more than 127,000 families in South Australia will receive assistance through their family assistance payments, more than 19,000 self-funded retirees will receive additional assistance, more than 56,000 job seekers will get additional assistance per year, more than 25,000 single parents in SA will get an extra $289 and more than 27,600 students in SA will get additional assistance under our package but will not get a single cent—just more tax—under yours, Senator.