House debates

Monday, 19 September 2011

Questions without Notice

Carbon Pricing

2:56 pm

Photo of Anthony AlbaneseAnthony Albanese (Grayndler, Australian Labor Party, Leader of the House) Share this | Hansard source

I thank the member for Parramatta for her question and indeed for her ongoing commitment and support for public transport, particularly for people in Western Sydney. This is a government that has committed more for urban public transport than was committed by all governments between Federation and 2007. Part of that commitment, of course, was to the Parramatta-Epping rail link, which the state government, in their budget a few weeks ago, walked away from. They walked away from that commitment in spite of the fact that it had some support from over there, sometimes, but consistent support from all those on this side of the House.

Of course, the member for Parramatta would know that the government of New South Wales also walked away from the $4 billion of state funding which had been committed for the Western Express line. That would have been of great benefit for all residents west of Parramatta on that line.

We are committed to public transport as part of our commitment to dealing with climate change. One of the benefits of increased use of public transport is that it lowers our carbon footprint by lowering our emissions. So this is a vital economic reform but is also vital for our environment.

I am asked about what modelling has been done. Of course, the government is ensuring that for any increased prices there is full and proper assistance given. Indeed, greater assistance will be given than the cost. Treasury modelling shows that there will be a modest impact of some 0.5 per cent on public transport.

In order to provide assistance nine out of every 10 households will receive assistance in the form of tax cuts or higher payments and there will also be direct assistance in terms of increased pensions and increased assistance for those on benefits. Compare that with the impact of the GST. The impact on public transport fares was some eight per cent—that is, eight per cent under the GST; 0.5 per cent under the carbon pricing. This carbon pricing relates to just a few cents on the ticket price for most public transport services. For example, a ticket from Parramatta to Central would have an increase of 2c or 3c.

I was asked about modelling that has been done. I was very surprised to see an exaggerated claim in the Daily Telegraph! The federal opposition—Tony Abbott's office—and the Office of the New South Wales Premier got together to cook up some outcomes. An email from Peter Grimshaw, copied to the Premier, said:

The 'Tele' is very keen to do a story for tomorrow's paper on the impact of the carbon tax ...

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