House debates

Tuesday, 29 May 2012

Questions without Notice

Carbon Pricing

2:34 pm

Photo of Janelle SaffinJanelle Saffin (Page, Australian Labor Party) Share this | | Hansard source

My question is to the Minister for Climate Change and Energy Efficiency and Minister for Industry and Innovation. Will the minister please update the House on how the government is helping families, pensioners and communities with the effect of the carbon price? What are the facts supporting the government's response and why is it important to rely on them?

Photo of Greg CombetGreg Combet (Charlton, Australian Labor Party, Minister for Climate Change and Energy Efficiency) Share this | | Hansard source

I thank my friend the member for Page for her question because, as we have indicated repeatedly, the carbon price will only have a modest impact on the cost of living, in fact an increase of 0.7 per cent, less than 1c in the dollar. As I have also observed previously, state based regulators are now confirming key aspects of the forecasts of the Treasury modelling.

For example, the New South Wales Independent Pricing and Regulatory Tribunal did recently indicate that electricity prices would rise by an average of $3.30 per week per household, bang on the Treasury modelling. Of course, the government's household assistance package provides an average per household of $10.10 a week. IPART in New South Wales has also approved a carbon price impact on council rates of just 0.4 per cent, less than the Treasury modelling. IPART's figures today have been confirmed by none other than the New South Wales government.

Today the New South Wales local government minister issued a press release showing council rates will rise just 0.4 per cent as a result of the carbon price. For the average household in New South Wales, this is just 6c a week. This was the press release that the shadow Treasurer was waving around earlier. However, he did not get his calculator out because what we have got is the New South Wales government confirming that rate rises will be less than that modelled under the Treasury modelling, just 0.4 per cent. But, of course, it does not stop the opposition. It does not stop the Leader of the Opposition, who has written to councils warning that the world will end as a result of the carbon price! His letter is chock-full of misleading information, including the assertion that it will be more expensive to run council trucks. The trouble with that, just taking that one example, is that on-road fuel costs are not increasing under the carbon price and, in fact, off-road fuel costs will decrease. Excise is being cut. It will fall from 1 July for local governments. All of these are hysterical predictions and deceitful claims.

Now the facts are coming in. The facts are: the cost impacts are modest and millions of Australian households will be better off, and they will be better off because this Labor government is delivering tax cuts, pension increases and increases in other benefits and family allowance payments. Be assured that every single lie, every single deceit, will be held to account. (Time expired)

2:38 pm

Photo of Janelle SaffinJanelle Saffin (Page, Australian Labor Party) Share this | | Hansard source

Madam Deputy Speaker, I have a supplementary question about the household assistance the minister just discussed. What does this mean for my local community and how will it help?

Photo of Greg CombetGreg Combet (Charlton, Australian Labor Party, Minister for Climate Change and Energy Efficiency) Share this | | Hansard source

This government is helping households make ends meet. In the electorate of Page, which my colleague, of course, represents extremely well, no fewer than 43,000 taxpayers will receive a tax cut from 1 July—tax cuts that the coalition opposes. There will also be in the electorate of Page no fewer than 12,700 people who receive increases in family assistance payments—payments that the coalition opposes. No fewer than 33,000 pensioners in the electorate of Page will receive an extra $338 a year if they are a single pensioner and an extra $510 a year if they are a pensioner couple. They will receive those increases next year, with $250 in advance flowing now for a single pensioner and $380 flowing now in an advance payment for a pensioner couple—and all of these increases are opposed by the opposition.

What does this mean in relation to some of the costs that people confront with the introduction of the carbon price? I spoke earlier about local government issues. In the Lismore City Council, for example, city council rates will go up by just 4c per person per week; and against that there will be an average of $10.10 per week in assistance. Their case is fiction. (Time expired)