Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer confirm that imposing a carbon tax on petrol will increase the price of fuel by 2.5c a litre for every $10 of tax?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I thank the shadow minister for his question. On this side of the House we believe that putting in place a carbon price is the most efficient way to reduce carbon pollution and make our economy much more competitive in the long term. If we do not get the investment, particularly in the energy sector, then prices will be far higher. If we do not get the investment in the energy sector, particularly when it comes to electricity generation, then we will face a future with an economy which is less competitive and prices that are higher than they otherwise would have been. Of that there is no doubt. But those on that side of the House will go to any lengths to run a scare campaign about the introduction of a carbon price and any lengths not to face up to this very big challenge for Australia.

Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

Mr Speaker, a point of order on relevance—the question was very specific: do you confirm that for every $10 of carbon tax the price of petrol goes up 2.5c a litre?

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The Treasurer will relate his response to the question directly. I allowed him a lengthy preamble. He then entered a bit too much into debate. The Treasurer has the call.

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

Of course I could not confirm that.