Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Wong. Can the minister outline to the Senate the benefits to the Australian economy of ensuring a fairer return on profits from Australia’s resources?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I am very pleased to take that question from Senator Marshall. It is interesting, isn’t it, that the opposition, who have talked so long and loud about how much they hate the MRRT, have not asked a single question today, despite the announcement by the Treasurer and the Minister for Resources and Energy. Senator Cormann, who is supposed to be the warrior for the mining—

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

On both sides!

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern and Remote Australia) Share this | Link to this | Hansard source

Mr President—

John Hogg (President) Share this | Link to this | Hansard source

Wait a minute, Senator Macdonald. You will get the call when there is silence on both sides.

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern and Remote Australia) Share this | Link to this | Hansard source

Mr President, I raise a point of order on the grounds of relevance. The question has been being answered now for almost 30 seconds. The minister has gone nowhere near the question and has spent her first 30 seconds, as she always does, in attacking the opposition or the questioner or explaining how the question should have been asked. Could you please draw the minister’s attention to the question and get her to answer it?

Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Link to this | Hansard source

Mr President, on the point of order: again, whilst the minister was being directly relevant in answering the question, the difficulty we always have with this is that we get a point of order which simply seeks to re-agitate the issue. Those opposite use the point of order to make their political point in this chamber. It is completely inappropriate. The minister has been answering the question.

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern and Remote Australia) Share this | Link to this | Hansard source

Senator Ian Macdonald interjecting—

Joe Ludwig (Queensland, Australian Labor Party, Manager of Government Business in the Senate) Share this | Link to this | Hansard source

The minister is being directly relevant to it, and again we hear those opposite—in fact, the offender himself—seeking to interject again. It is completely inappropriate. If the point of order were taken properly we might proceed with a better outcome for them.

John Hogg (President) Share this | Link to this | Hansard source

There is no point of order.

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I am very happy to talk about the minerals resource rent tax and the announcement today. I am just making the point that the opposition has refused to ask any questions on this.

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern and Remote Australia) Share this | Link to this | Hansard source

Senator Ian Macdonald interjecting—

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

I am surprised that Senator Macdonald wants to interject complaining that I have too much of a go at the opposition. He called me a ‘precious little petal’ a couple of days ago. One wonders who the little petal is. Who is the precious one, Senator Macdonald? But turning now to—

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

On both sides, I need order!

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

Of course, today’s announcement on the MRRT is about ensuring that we are able to set aside money from the boom to invest in the future. We need to do this to make sure that our success as a nation outlasts the boom. Let us remember what this taxation reform will deliver: a boost to national savings, a cut to company taxation and of course investment in infrastructure, particularly in the mineral rich states of Western Australia and Queensland.

We have a Liberal Party that are opposed to a reduction in company taxation, a Liberal Party opposed to reductions in the company tax rate—who would have thought? On the one hand, we see the Liberal Party wanting a government grants program when it comes to climate change, and they also want to oppose a reduction in company tax despite the fact that they say they are a party of low tax. (Time expired)

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I thank the minister for that answer, which was both comprehensive and directly relevant. Can the minister outline to the Senate the importance to all Australians of introducing new taxation arrangements—

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

On both sides! I am sorry; I cannot hear the question.

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Would you like me to start again, Mr President?

John Hogg (President) Share this | Link to this | Hansard source

Ask the question.

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Can the minister outline—

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Marshall, continue. Ignore the interjections.

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

I will try. Can the—

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Marshall, ignore those interjections and continue.

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Can the minister outline to the Senate the importance to all Australians of introducing new taxation arrangements for Australia’s resources and discuss the capacity of the Australian economy to respond to these new arrangements?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

The chamber might like to be aware of the trend in mining industry investment, including since the announcement of the MRRT, despite the sort of scare campaign we saw from those opposite: $34 billion last year, $55 billion this year and industry expectations of $76 billion next year. What this really shows is that we have a once in a generation opportunity driven by the massive investment in the mining sector, yet what do we have from the other side? Just a bit more opposition; just for a change, a bit more opposition. ‘We don’t want a sensible taxation regime when it come to this mining investment boom, we don’t want to ensure that our success outlasts the boom’— (Time expired)

Gavin Marshall (Victoria, Australian Labor Party) Share this | Link to this | Hansard source

Again I thank the minister for that answer. Can the minister outline to the Senate the risks of any alternative views on resource taxation arrangements in this country?

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

The risks are that yet again the opposition turn their back on reform for the future, just as they did in government. They like to pretend they were such great economic managers. Let us remember: $334 billion in revenue windfall, and what did you do with it? Where were the investments in the future? Now what do we see?

Opposition Senators:

Opposition senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Order! On my left!

Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Link to this | Hansard source

It was $334 billion in revenue windfall, and where was the investment in the future? Now we see an investment expectation in the next financial year of some $76 billion in the mining sector, very substantial increases in investment, and what does the opposition say? ‘Look, we don’t want to do anything with that, we don’t want to recognise the benefits of a lower company tax rate.’ (Time expired)

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

Mr President, I ask that further questions be placed on the Notice Paper.