Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Climate Change and Energy Efficiency, Senator Wong. What explanation does the government have for the 419,000 households in Western Aust­ralia, representing 52 per cent of all WA households, who, according to Western Australian Treasury modelling, will be worse off under Labor's carbon tax, a carbon tax which will do nothing to help reduce global greenhouse gas emissions?

Honourable Senators:

Honourable senators interjecting—

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

Order! I remind senators on both sides that Senator Cormann has asked the question and I cannot call the minister until the debating has ceased. The proper time for debate is after three o'clock.

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

I welcome the question from the senator, a senator from a state in which under a Liberal government I understand we have seen quite substantial hikes in electricity prices. I do not recall seeing the good senator call for compensation from the state Liberal government when Western Australians continued to see their electricity prices increase. If he was really serious about his concern, one might have thought that he might have said something when Premier Barnett ensured that he delivered higher electricity prices without compensation for Western Australian families.

It is the case that we have seen another Liberal state government release another set of modelling to jump aboard Mr Abbott's scare campaign in relation to a carbon price. Similar to modelling exercises recently released, the Western Australian government has presented the information in a way that does show the carbon price in a negative light. For example, there are modelled electricity price impacts which are presented as being revelation of the hidden cost of a carbon price when in fact I am advised that the Western Australian Treasury concludes that electricity price impacts for consumers will be seven per cent. This is in fact lower than the 10 per cent that the federal government has modelled and that our household assistance is based on. I am advised that the Western Australian modelling actually shows a lower increase in electricity impacts than the federal modelling that we based our household assistance on. If I had time, I would be very happy to share with Senator Cormann the very many households in Western Australia who will get a tax cut under this government. (Time expired)

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Given that the WA Treasury modelling also found that the cost of production for Western Australian electricity generators and suppliers will increase by $230 million to $280 million a year and that it will be harder for Western Australia to export cleaner energy like LNG or to contribute to cleaner steel production through the export of magnetite, can the minister explain how the government's carbon tax will be good for the west or for the environment?

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

If you have a look at the pipeline of investment into Western Australia, I think the market itself has made clear the likely prospects for that state. Even factoring in a carbon price, we are seeing a massive investment in the resources sector, particularly in Western Australia. In fact, the senator himself has been spruiking that here in this chamber. So it is really quite disingenuous of him to come in here and suggest in any way that the carbon price is somehow going to destroy the Western Australian economy. He knows that proposition is not true. I would remind him that the Australian Treasury has released modelling which shows that the Western Australian economy will enjoy strong growth under a carbon price: a 51 per cent growth by 2020 and in excess of 200 per cent by 2050.

Senator Brandis interjecting—

These are the same people who advised Mr Costello, Senator Brandis. (Time expired)

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Can the minister explain why the government is pressing ahead with a tax which hurts households, which hurts the economy, which makes us less competitive internationally, which costs jobs and which does nothing to help reduce global greenhouse gas emissions?

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

The government is pressing ahead with pricing carbon for the same reason Prime Minister Howard did: it is the cheapest way to reduce emissions to get to the target that you also signed up to. We both want to reduce emissions. The difference is that we have a sensible policy; you have a taxpayer funded bureaucratic process that is about picking winners. It will not work and it will be more expensive. That is the difference. If Senator Cormann really cared about Western Australian families he might like to tell the 280,000 pensioners in Western Australia who will receive an extra $338 per year—and up to $510 if they are couples—why he wants to claw back that increase. Let us remember we have an assistance package, you don't. You will have to go to the next election saying that you stand for cuts to pensions in Western Australia, Senator Cormann. That is your policy. (Time expired)