House debates

Thursday, 26 May 2011

Questions without Notice

Carbon Pricing

3:14 pm

Photo of Andrew SouthcottAndrew Southcott (Boothby, Liberal Party, Shadow Parliamentary Secretary for Primary Healthcare) Share this | | Hansard source

My question is to the Treasurer, and I refer the Treasurer to the announcement that SA power provider ETSA Utilities will raise household power bills in South Australia by 10 per cent this year and over the next two years utility bills will rise by $623 for the forgotten families of South Australia.

Mr Champion interjecting

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

Order! The member for Boothby will resume his seat. The member for Wakefield will leave the chamber for one hour under standing order 94(a).

The member for Wakefield then left the chamber.

Photo of Andrew SouthcottAndrew Southcott (Boothby, Liberal Party, Shadow Parliamentary Secretary for Primary Healthcare) Share this | | Hansard source

Over the next two years, utility bills will rise by $623 for the forgotten families of South Australia. Given that the Prime Minister said before the election, 'There will be no carbon tax under a government I lead,' why is the government making life even harder for families, already struggling with cost-of-living pressures, by introducing a carbon tax which will add a further $300 to household power bills?

3:15 pm

Photo of Wayne SwanWayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | | Hansard source

I thank the member for that question. The government absolutely understands the concern felt by electricity consumers about price rises that are occurring under the regulatory framework that has been in place not just under this government but under the past government. The member for Boothby is trying to draw a link between these price rises and the impact of a carbon price we do not yet have. That demonstrates what a baseless scare campaign they are engaged in. The fact is that there are pressures in the system and prices are going up and that is putting pressures on families. The opposition seek to say that is somehow a consequence of decisions that have been taken by this government. They know that to be completely false.

Photo of Andrew SouthcottAndrew Southcott (Boothby, Liberal Party, Shadow Parliamentary Secretary for Primary Healthcare) Share this | | Hansard source

Mr Speaker, on a point of order on relevance: I highlighted the utility bills and asked why the government is adding to it by $300 through a carbon tax.

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

Order! The Treasurer is responding to the question. He knows that he has to be directly relevant, but he is responding.

Photo of Wayne SwanWayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | | Hansard source

On the eve of the last election, the member for Groom was openly honest about this, which is rare for the opposition. He said that prices are going up, and he said why: because there has not been sufficient investment in the network. They are very embarrassed about this statement from the member for Groom.

Opposition members interjecting

Photo of Harry JenkinsHarry Jenkins (Speaker) Share this | | Hansard source

The Treasurer will resume his seat until the House comes to order.

Photo of Wayne SwanWayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | | Hansard source

Everybody in this House knows that prices are going up and it has been caused by inadequate investment in the system over a long period of time. Those opposite might seek to deny it now, but they were open about it prior to the last election. For them to go out there now and run a baseless scare campaign somehow linking it to a future carbon price demonstrates just how dishonest they are. They know that the country has to face up to this tough decision. The government will face up to this decision. We will take a responsible decision in the interests of all consumers.