Dan Tehan (Wannon, Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. Is the Prime Minister aware that Murray-Goulburn, which produces this locally made butter, will be hit by her carbon tax while the company that makes this European butter is virtually exempt from the European emissions trading scheme? Prime Minister, how is this fair?

Government Members:

Government members interjecting—

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I thank the member for his question. First and foremost I would say to the member that I know the opposition have been out there fundamentally distorting the impact of carbon pricing, and one of the areas they have been fundamentally distorting is the dairy industry, where they have been trying to pretend to people that there are big costs coming and have been trying to scare people. They believe it is all part of their political strategy and they do not want people to have the facts. In our carbon pricing package, as the member may have seen, there are streams of assistance that will be available to assist people. He may want to get some of that information. I doubt, for example, that he has been out in his electorate talking to pensioners about how they are going to benefit and get more money than they need to assist with the average impact of having priced carbon.

Opposition Members:

Opposition members interjecting—

Dan Tehan (Wannon, Liberal Party) Share this | Link to this | Hansard source

Mr Speaker, a point of order on relevance: there are 40,000 people directly employed in the dairy sector who want—

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

The member for Wannon knows that he cannot add to his question. On direct relevance, the Prime Minister is aware of her obligation. The Prime Minister is responding to the question.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

To the member who asked the question, I went to the question of assistance that we are providing to pensioners. Tax cuts and family payments are No. 1, because I doubt that he has bothered to inform his constituents of that. And No. 2: of course we are doing that because we expect that there will be some costs passed through on items where carbon pricing has had an effect. The amount of those flow-through costs is less than a cent in a dollar—it is 0.7 per cent of CPI. The Leader of the Opposition has been out misrepresenting that to the Australian people and saying that it is astronomical. It is 0.7 per cent of CPI, and people will have assistance as they meet those costs. Indeed, around four million Australian households will come out better off.

I am familiar with the electorate that the member represents. In that electorate particularly I think he should look at the compensation statistics and the way in which people will be assisted. We will continue to work with the dairy industry and get them the facts. They will never get them from the opposition. When we get them the facts, that will help them understand the modest impacts of carbon pricing as opposed to the fear campaign to which they have been subjected.

Finally, I would say to the member who asked the question: has he ever inquired of the Leader of the Opposition how the so-called direct action policy—the subsidy of polluters policy—is going to affect his electorate? Has he ever inquired about how it is going to be funded? The cost is $1,300 per family. Who is going to pay that? Has he ever asked whether the penalty clause in that policy will be leveraged against dairy farmers? Has he ever asked the Leader of the Opposition that? I suggest that he ask some of those questions because—

Opposition members interjecting—

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

Order! The House will come to order. The Prime Minister is wrapping up her answer.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

the Leader of the Opposition's policy is the most costly way of getting carbon abatement. The member has a choice to make. No. 1: does he support the minus five per cent target at 2020? Yes or no. The Leader of the Opposition says all things to all people—the member can make his own decision. If the decision is yes, he supports the target. No. 2: does he support doing it in the least costly way or hitting those dairy farmers and his constituents with the new and onerous burdens that the Leader of the Opposition is planning for them?

Government members interjecting—

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

The member for McEwen is warned.