David Bushby Tasmania, Liberal Party
2:11 pm
My question is to the Minister representing the Minister for Climate Change and Water, Senator Wong. Minister, what impact has the announcement of the carbon tax to take effect from 1 July next year had on investor confidence in Australian companies?
Penny Wong SA, Australian Labor Party, Minister for Finance and Deregulation
As the senator should know—
Unidentified interjection - Hansard doesn't record who said this
Government Senators:
Government senators interjecting—
John Hogg President
Senator Wong, your own side is drowning out your answer. We are entitled to hear it.
Penny Wong SA, Australian Labor Party, Minister for Finance and Deregulation
As the good senator perhaps should know, the thing that investors do need is certainty. If he engaged in this debate with a modicum of a sense of the public policy requirements, he would know that what business is seeking is certainty.
Unidentified interjection - Hansard doesn't record who said this
Honourable Senators:
Honourable senators interjecting—
John Hogg President
Senator Wong, resume your seat. I know people want to talk amongst themselves sometimes, but I need reasonable silence so I can hear the answer. Senator Wong.
Penny Wong SA, Australian Labor Party, Minister for Finance and Deregulation
As I was saying, what the senator should be aware of is that the business community, the investment community, do seek certainty across the board in policy areas but certainly, critically, in the context of carbon pricing. If he had taken the time along with the government of engaging with business, he would know that there are a range of different views about how this should be constructed, what the architecture should be, but there is a deep concern about the ongoing uncertainty associated with carbon pricing. The government is very aware of that and does believe that providing certainty in this area is important to making sure investment decisions that have long-term outcomes can be made. We are very concerned to ensure that investors, particularly, for example, in the electricity generation sector, have the capacity to make those investment decisions with policy certainty. So that is why we are working through with the multiparty committee a mechanism to price carbon. There are a range of issues about the design of that mechanism. The Minister for Climate Change and Water has been clear about the processes associated with discussing those. The government is engaging with business to do that. We will continue to do that. Unlike the opposition, we will not try and foster uncertainty by saying before they see anything that they are going to overturn it in future and by fostering the sort of fear-mongering and scare-mongering that they do. (Time expired)
David Bushby Tasmania, Liberal Party
Mr President, I ask a supplementary question. Is the minister aware that investment analysts in Asia, such as JP Morgan, Credit Suisse and so on, are advising a four to five per cent fall in net profit, after tax, as a direct impact of your carbon tax on Australian diversified miners and that, without assistance, two aluminium smelters in Victoria will close, even at a carbon tax price of $10 a tonne?
Penny Wong SA, Australian Labor Party, Minister for Finance and Deregulation
There are a great many things said by different analysts, and I invite the senator to consider some of the comments made by a range of business leaders encouraging the opposition to take a more sensible approach to this.
Ian Macdonald Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern and Remote Australia
Penny Wong SA, Australian Labor Party, Minister for Finance and Deregulation
For example, Brad Page, CEO of the Energy Supply Association, stated that investors need ‘an equitable and enduring greenhouse gas emissions price signal’—
Ian Macdonald Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern and Remote Australia
Senator Ian Macdonald interjecting—
Penny Wong SA, Australian Labor Party, Minister for Finance and Deregulation
Perhaps I need to say that again, because Senator Macdonald clearly is not interested in what the electricity sector has to say: investors need ‘an equitable and enduring greenhouse gas emissions price signal’ and ‘this can only be achieved through bipartisan policy agreement.’ We would welcome the opposition actually approaching this issue with a focus on what is right for the nation, a focus on sensible public policy, but regrettably they have been lacking. Regrettably all they wish to do is to run a no campaign, a fear campaign and a scare campaign on this important policy issue.
David Bushby Tasmania, Liberal Party
Mr President, I ask a further supplementary question. Given that investment analysts are already advising that the carbon tax represents a significant disincentive to invest in Australian companies, is your claim that a carbon tax will be good for the economy simply bluff and spin?
Doug Cameron NSW, Australian Labor Party
What about your $30 billion black hole, you economic incompetents?
Eric Abetz Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations
Better than being a zombie.
Unidentified interjection - Hansard doesn't record who said this
Honourable Senators:
Honourable senators interjecting—
John Hogg President
When there is silence on both sides, we will proceed.
Ian Macdonald Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern and Remote Australia
Dougie, zombies are meant to be seen and not heard.
John Hogg President
When there is silence on both sides, we will proceed.
Penny Wong SA, Australian Labor Party, Minister for Finance and Deregulation
This is an economic reform that is about transforming Australia’s economy in the most efficient way. If you look back through our history at a range of economic reforms which were about transforming our economy, you will see there were times when people said that this would be the end of industry—when we went through the arguments about trade liberalisation, about floating the dollar, those important economic reforms.
Nick Sherry Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism
Superannuation.
Penny Wong SA, Australian Labor Party, Minister for Finance and Deregulation
Thank you, Senator Sherry—of course, superannuation. We heard those voices—some on the other side—saying this was the end of the world. Perhaps in five or 10 years time, when we have had a carbon price, when investors are pricing that into their long-term decisions, as this country moves to a cleaner energy, low-pollution economy, people might look back on Senator Bushby’s question and think really how backward looking it was.