Senate debates Questions without Notice

Carbon Pricing


Ian Macdonald

Ian Macdonald Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern and Remote Australia

2:39 pm

My question is to Senator Wong in her own ministerial capacity and also representing the minister for climate change and the minister for industry, as far as it is relevant. Is the minister aware of recent reports that the showroom price of a Holden Commodore or a Ford Falcon would increase by $1,000 with the introduction of a $25 a tonne carbon tax? Does the minister agree with this estimate by the Australian car companies? If not, what is the estimate of retail cost increases with a carbon tax? I emphasise those two simple questions. Does the minister agree with the estimate? If not, what is her estimate of the increase?

John Hogg

John Hogg President

Senator Wong, answer only those parts that relate to your portfolio.

Penny Wong

Penny Wong SA, Australian Labor Party, Minister for Finance and Deregulation

2:40 pm

In answer to the first part of the question: no, I am not aware of that particu­lar modelling. It is unsurprising, however, that there are a range of assertions out there from some parts of industry around the impact of a carbon price. We are aware, for example, of various mining companies, some of whom are coalmining companies and some of whom are—

Unidentified interjection - Hansard doesn't record who said this

Opposition Senators:

Opposition senators interjecting

John Hogg

John Hogg President

Senator Wong, ignore the interjections. Those on my left will cease interjecting.

Opposition senators interjecting

Government senators interjecting

The time for debating this issue is at the end of question time. Senator Wong, please continue.

Penny Wong

Penny Wong SA, Australian Labor Party, Minister for Finance and Deregulation

As I was saying, there are obviously a great many assertions being made by those opposite about the effect of pricing carbon—which used to be their policy—on industry and on different parts of the economy. I recall, for example, in relation to the mining tax Mr Abbott saying that it would kill the mining boom stone dead. It is interesting to note that, since the government announced the resource tax reforms, we have actually seen an increase in mining employment—

Opposition senators interjecting

Yes, an increase. On the one hand we have Mr Abbott saying the sky will fall in and mining will stop, but in fact we have seen an increase.

George Brandis

George Brandis Queensland, Liberal Party, Shadow Attorney-General

Mr President, I rise on a point of order relating to direct relevance. There were two questions. The minister answered the first question in the first 10 seconds when she said she did not know. There was a second question: what is the government's own estimate of the cost increases for retail motor vehicles? Nothing she has said since has come anywhere near to that question.

John Hogg

John Hogg President

I believe the minister is answering the question. The minister has 41 seconds remaining to answer the question.

Penny Wong

Penny Wong SA, Australian Labor Party, Minister for Finance and Deregulation

I would also make the point—and the senator knows this because he has asked me similar questions on carbon pricing over many years—that obviously the effect of a price depends, amongst other things, on the level of that price, and the government has not yet announced what that will be. In relation to the automotive sector, this government has ensured that the new Car Plan will deliver about $5.4 billion to the automotive sector in recognition of the importance of that industry and the need to invest for the future.

Ian Macdonald

Ian Macdonald Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern and Remote Australia

2:43 pm

Mr President, I ask a further supplementary question. I point out to the minister that these are not allegations by me or the coalition, they are allegations by industry leaders. Holden's chief executive officer, Mike Devereux, has said that a carbon price of between $20 and $30 a tonne would raise the costs of production in Australia by $40 million to $50 million. Minister, what would such increases do the ability of Holden's Australian produced cars to compete with South-East Asian produced vehicles coming from countries which do not have a carbon tax?

Penny Wong

Penny Wong SA, Australian Labor Party, Minister for Finance and Deregulation

2:44 pm

One wonders, of course, where the good senator was when former Prime Minister Howard committed to a carbon price through an emissions trading scheme. One wonders whether this senator went to the 2007 election saying, 'I know we've agreed to an emissions trading scheme but I actually don't want one because it's a very bad thing for industry and a very bad thing for jobs.'

One wonders whether this was discussed in the Howard ministry, whether this good senator—who was, I think, a minister at that time—stood up and said, 'I don't think we should do this because this is bad for the economy.' That was the policy of the coalition at the 2007 election and under Prime Minister Howard when they used to actually care about economic policy, when they actually used to care about ensuring there was an economically responsible approach to climate change. We will continue to proceed with this policy because it is the right thing to do. (Time expired)

Ian Macdonald

Ian Macdonald Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern and Remote Australia

2:45 pm

Mr President, I ask a further supplementary question.

Unidentified interjection - Hansard doesn't record who said this

Opposition Senators:

Opposition senators interjecting

John Hogg

John Hogg President

Just wait a minute, Senator Macdonald. You are being interjected on by your own side.

Ian Macdonald

Ian Macdonald Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern and Remote Australia

That is fine; they are very good interjections, I might say, Mr President.

John Hogg

John Hogg President

You are entitled to be heard in silence, Senator Macdonald, regardless of what side.

Ian Macdonald

Ian Macdonald Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern and Remote Australia

I ask the minister: will the government do anything to support the local manufacturing industry in view of the stated concerns by both Ford and Holden as they 'reassess their commitment' to manufacturing in Australia because of the carbon tax? Is this just another example of Australian jobs going offshore with no impact whatsoever on the reduction of carbon emissions?

Penny Wong

Penny Wong SA, Australian Labor Party, Minister for Finance and Deregulation

2:46 pm

What is interesting is the senator's interest in the automotive sector when those opposite, on various occasions in various types of costings plans and savings plans, have sought to reduce some of the assistance to the car sector. We have made clear that we will retain the other components of the $5.4 billion new-car plan. That is a very substantial investment in the automotive sector by the government which, in tight fiscal circumstances, has committed to continue because we understand the importance of providing assistance.

George Brandis

George Brandis Queensland, Liberal Party, Shadow Attorney-General

The livestock industry, the coal industry and now the automotive industry.

Penny Wong

Penny Wong SA, Australian Labor Party, Minister for Finance and Deregulation

It is interesting to note Senator Brandis interjecting. He used to believe in a carbon price—but nothing now! Where are you, George? (Time expired)

George Brandis

George Brandis Queensland, Liberal Party, Shadow Attorney-General

I never supported a carbon tax.

Honourable senators interjecting

John Hogg

John Hogg President

You can debate the issue at the end of question time, on both sides.