Julie Owens (Parramatta, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer outline for the House the importance to Australia's economic future of putting a price on carbon pollution? How has this approach been received and what is the government's response?

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

I thank the member for Parramatta for her question because putting a price on carbon pollution is absolutely important for future prosperity and for future environmental sustainability. We on this side of the House accept the proposition that climate change is real. Just about every reputable scientist believes that climate change is real and, indeed, the Howard government even believed that climate change is real—which is why it believed in putting a price on carbon pollution.

All of the leading scientists, particularly those who came out in the last few weeks, make it very clear that climate change is real, that we are causing it and that we do need to act now. We need to act now because we are in the critical decade. To delay action will mean greater costs and a greater adjustment into the future. That is why economists and business groups accept that the cost of inaction is greater than the cost of action. That has been accepted since the Stern report came down three or four years ago. It is accepted amongst economists that the least-cost way of doing this is by putting a price on carbon pollution.

That is why we had, in the last couple of weeks, 13 respected Australian economists making that point from most of our reputable businesses in the country. We have Australian business—the Australian Industry Group, the BCA—all arguing for a price on carbon. Only last week we had the CEO of NAB who has said that a price on carbon will drive certainty, it will drive investment. This proposition is also accepted by our largest mining, gas and energy companies.

Mr Van Manen interjecting—

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

The member for Forde is warned.

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

Last week, we had the Chairman of Gloucester Coal, Mr James MacKenzie, who made this point about the coal industry:

We are talking about $1 a tonne in the coal industry. It is not something that is going to affect the economics of the coal industry...

That is why companies like Shell, BP, GE, AGL, Santos, Rio Tinto, BHP Billiton and Origin Energy have all come out in favour of a market price. They all accept that a price on carbon is the way to go to secure our future prosperity.

Ms O'Dwyer interjecting—

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

The member for Higgins is warned.

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

We are going about this in the Labor way. We are going about this by providing assistance for households. Nine in 10 households will receive a combination of tax cuts and increased payments to help with the cost of living. We will provide transitional assistance to industry.

So what does the Leader of the Opposition do in the face of everything that the scientists are saying, everything that the economists are saying, everything that senior corporate leaders are saying? He simply ignores the scientists and prefers to take the advice of Lord Monckton. Nothing more could demon­strate what a climate change sceptic he is than that fact. When he got on the wrong side of this, he decided last week when he was at the economics conference in Melbourne to start attacking all of the economists who agree with pricing carbon.

We know something about this Leader of the Opposition: he just likes to come out swinging all of the time and he does not care who he hits. Last week he started taking it out on leading Australian economists who had the temerity to argue for a price on carbon. So he ignores business, he ignores economists and we saw in the House last week and again today that he is going to ignore his own plebiscite. He will not take any notice of business, he will not take any notice of economists and he will not take any notice of scientists. All this just shows how dangerous and unfit for high office he is.

Alex Hawke (Mitchell, Liberal Party) Share this | Link to this | Hansard source

My question is to the Treasurer. I refer the Treasurer to Greens Senator Christine Milne's statement that the Productivity Commission's report on fuel excise will be handed down in 2015 and that, at that time, petrol could be included in the carbon tax. Treasurer, can you rule out including petrol in the carbon tax in 2015?

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

The Prime Minister has made it very clear that we will not be including fuel in the carbon price now or in the future.