Greg Hunt (Flinders, Liberal Party, Shadow Minister for Climate Action, Environment and Heritage) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer to this letter from Global Switch—which runs a data centre for leading Australian companies—to its customers, dated 14 May 2012. The letter confirms that the electricity rate will rise from 14.8c per kilowatt hour to 19.4c from 1 July 2012, a rise of 31 per cent. Will the Prime Minister now admit that many small businesses using off-peak tariffs will face electricity increases after 1 July far in excess of the 10 per cent she promised?

Mr Laming interjecting—

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

Order! The member for Bowman is denying the ability for his colleague to get an answer. The Prime Minister has the call.

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

Thank you very much, Deputy Speaker. To the member's question, what the government have always said about carbon pricing is we worked with the Treasury to model the effects, particularly the effects for households. We modelled those effects and said that, on average, the additional cost for households would be $3.30 per week. As the member well knows, the jury is effectively in on that, because the regulators around the nation, including in New South Wales, have spoken and said either that the increase is exactly what the government said it would be or it would be less.

Dr Jensen interjecting—

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

The member for Tangney may be out very soon too.

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

So, in those circumstances, the assistance that is being provided is going to assist households in the way that the government predicted—that is, we will see an average increase in electricity for households of $3.30 a week and an average assistance of $10.10 a week.

Greg Hunt (Flinders, Liberal Party, Shadow Minister for Climate Action, Environment and Heritage) Share this | Link to this | Hansard source

Madam Deputy Speaker, I rise on a point of order on relevance. The question was about the impact on small businesses and the fact that many would receive increases far in excess of 10 per cent.

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

The member for Flinders will resume his seat. The Prime Minister has the call.

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

Thank you very much, Deputy Speaker. The member for Flinders raises with me the question of electricity prices more broadly.

Opposition members interjecting—

I am answering the member for Flinders's question more broadly than households, which I have just described. Of course in modelling the impact for households, which will be less than a cent in a dollar, the flowthrough impacts from businesses were modelled into that cost-of-living rise, and households will see tax cuts, family payment increases and pension increases. I would also say to the member for Flinders, as he well knows, putting a price on carbon is the most efficient and effective way of reducing carbon pollution.

Christopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | Link to this | Hansard source

On a point of order, Madam Deputy Speaker, the Prime Minister is defying your very clear ruling that she answer the question she was asked about small businesses, not about households. I ask you to draw her back to the question.

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

Order! The Prime Minister has the call.

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

I was simply pointing out that whether one is talking about carbon pricing and small businesses, large businesses, households or anyone in the Australian nation, if you are going to address carbon pollution you need to work out the cheapest and most effective way of doing it. I agree with the member for Flinders when he says that perhaps the most important domestic policy decision was the decision of the Howard government that Australia would implement a national carbon trading system. He then went on to urge the government to take up that proposal for putting a price on carbon. Given his words then endorsing carbon pricing, I am a little surprised to get his question today.