Senate debates

Wednesday, 12 October 2011

Questions without Notice: Take Note of Answers

Carbon Pricing

3:04 pm

Photo of Ron BoswellRon Boswell (Queensland, National Party) Share this | | Hansard source

I move:

That the Senate take note of the answers given by the Minister for Finance and Deregulation (Senator Wong) to questions without notice asked by Senators Cormann and Birmingham and the Leader of The Nationals in the Senate (Senator Joyce) today relating to a proposed carbon tax.

In one way it is a black day for Australia and in another way it is a joyous day because the Labor Party have activated a great army that will march against them at the next election. They have activated every small business. Every business will be out there contributing in many ways to get rid of this horrible Labor government led by Bob Brown. People have made their minds up. You would have seen the reaction in the other house, Mr Deputy President, where people were chanting in the gallery. That is only the start of what this Labor Party are going to find. They have been completely outmanoeuvred, completely sold out and completely destroyed by Bob Brown, who has led them around by the nose. I congratulate Bob Brown. He is a master tactician leading a bunch of dopes.

Photo of Stephen ParryStephen Parry (Tasmania, Liberal Party) Share this | | Hansard source

Order! Senator Boswell, can you refer to Senator Brown by his correct title.

Photo of Ron BoswellRon Boswell (Queensland, National Party) Share this | | Hansard source

I congratulate Senator Brown. He is a master tactician leading a bunch of dopes. Talk about rope-a-dope! He has roped them one after another and while he is picking up momentum the Labor Party are bleeding momentum. You are not going to have one blue collar worker left, Senator Cameron. I learnt something the other day which I never knew and never suspected: Senator Cameron's union actually funds the Greens. Did anyone know that? Senator Cameron's union funds the Greens; so does the CFMEU. I could never understand where Senator Cameron was coming from, but he who pays the piper calls the tune.

Photo of Doug CameronDoug Cameron (NSW, Australian Labor Party) Share this | | Hansard source

Mr Deputy President, a point of order: that is a complete misrepresentation and should be withdrawn. That is an aspersion against me and how I am acting and should be withdrawn.

Photo of Stephen ParryStephen Parry (Tasmania, Liberal Party) Share this | | Hansard source

There is no point of order, Senator Cameron. Senator Boswell, continue.

Photo of Ron BoswellRon Boswell (Queensland, National Party) Share this | | Hansard source

Perhaps it is time to reflect on what we have achieved today, because today Australia has put itself in a $105 billion hole—that is what it is going to cost—while reducing Australia's emissions by 53 million tonnes. Do you know what that means? It means that 53 million tonnes will be taken up in 24 hours by China. So we have had a great win for Australia! In 24 hours China's production will cancel out our 53 million tonnes of emission savings. What a great win for Australia! But that is what we have done overall. It has also affected our exports, destroyed our jobs, and all for the sake of nothing.

Senator Wong has been telling us ad infinitum about the modelling. I challenge her to put up the GEM modelling now—the one that has been upgraded by the Treasury. She will not do it. I have continually asked for it. There is no modelling. This is an act of treachery that has no basis, it has no modelling. MacGibbon cannot get the modelling and Ergas cannot get the modelling. The modelling is not available, and I challenge them and I challenge Senator Cameron—

Senator Cameron interjecting

I will give your union 1,000 bucks if you turn up with that modelling. It will hit the big end of town. They are going to hate the Labor Party with a vengeance. You have stuck a stick down an ants nest and stirred it up, and you are going to cop it left, right and centre. But that is not just the big end of town. I got a letter today from someone from the small end of town, the small business community. You may have got one. It was from the owner of Morgans Seafood restaurant. His bill is going up $8,000 for his restaurant and $18,000 for his cold room where his trawlers come in. That is just one small business. There are millions of them out there. (Time expired)

3:09 pm

Photo of Doug CameronDoug Cameron (NSW, Australian Labor Party) Share this | | Hansard source

Senator Boswell has just demonstrated as the lead speaker on this issue for the coalition that he does not understand what the government and what the world face with climate change. This is a historic day because it is a victory for science, it is a victory for common sense, it is a victory for the environment and, more important than anything else, it is a victory for future generations. That is what the victory is today. And it is a defeat for deniers like Senator Boswell. But at least Senator Boswell does not hide the fact that he does not think there is a problem with the climate. It is a defeat for the deniers, it is a defeat for the sceptics and it is a defeat for the political opportunists in the coalition.

This is the right thing to do for this country and the right thing to do for the world. It is socially, environmentally and economically responsible. The science is clear and the impacts of climate change are clearly visible. As stated by the CSIRO:

Southern and eastern Australia’s water supply reliability is expected to decline as a result of reduced rainfall and increased evaporation …

Development and population growth in Australia’s coastal regions will exacerbate the risks from sea-level rise and increase the likely severity and frequency of coastal flooding.

Significant losses of unique Australian animal and plant species are expected to occur in sites such as the Great Barrier Reef

The risks to infrastructure include the failure of urban drainage and sewerage systems, more blackouts, transport disruption, and greater building damage—

These are all going to be the result of climate change.

Heatwaves, storms and floods are likely to have a direct impact on the health of Australians …

Moderate warming in the absence of rainfall declines can be beneficial to some agricultural crops … However, these positive effects can be offset by changes in temperature, rainfall, pests, and the availability of nutrients.

This is not the Labor Party saying these things, this is the pre-eminent scientific body in Australia—the CSIRO.

Scientists around the world agree. The only people who do not agree in this place are the coalition. Some of them know better, but are taking the short-term political approach on this issue. I would rather listen to the CSIRO than to Senator Boswell who tells us he goes out on his yacht off Brisbane in Queensland and he cannot see any rise in sea levels. That is the level of the scientific analysis of the coalition.

You see, this is the right thing to do. It is the right thing to do for the country. As the CSIRO says, there are problems with nutrient deficiency. One of the hearings that I was involved in recently was an inquiry into koalas. What do the scientists say about koalas in relation to global warming? They say that the chemical nature of the food that koalas eat—that is, eucalyptus leaves—is changing because of global warming. The nutrients are being diminished, the chemical composition is changing and koalas are suffering because they cannot get nutrition from these eucalypt leaves. That is just one of the many examples of problems with global warming.

The hypocrisy of the coalition knows absolutely no bounds. Let me remind those opposite of what their former leader John Howard said:

A re-elected Coalition government will establish the world's most comprehensive emissions trading scheme in Australia, commencing no later than 2012. The scheme will be the primary mechanism for reducing Australia's emissions …

That is what John Howard said. You know it is the right thing to do. You should stop your hypocrisy and you should act in the national interest. Hypocrisy is ruling the national interest— (Time expired)

3:14 pm

Photo of Alan EgglestonAlan Eggleston (WA, Liberal Party) Share this | | Hansard source

I do not know whether hypocrisy is ruling the national interest at all. I think delusion is somehow ruling the policies of the Labor Party. Today in the House of Representatives 74 members betrayed the Australian people. Today legislation for a carbon tax was passed on the basis of a lie, for a carbon tax the Australian people were promised would not be introduced. The Labor-Green carbon tax will, I am sure—I am convinced absolutely, Senator Cameron—drive up prices, threaten jobs and do nothing for the environment. It is in fact a great big tax on everything and every year that tax will cost the Australian people more—not only in tax but in jobs and in diminished competitiveness on the world market.

Australian industry depends very much on competitiveness and yet this carbon tax will very much threaten it. For example, at the Boao conference held earlier this year in Perth, Kerry Stokes pointed out that, while the Australian economy is very dependent on China, China has many trading partner options and Australia has one—namely, China—for our mineral resources. So if our prices are too high and we become uncompetitive then the Chinese will be going elsewhere—most likely to West Africa—and our great minerals boom will certainly diminish.

A carbon tax will cost jobs. According to the Minerals Council of Australia it will cost some 23,000 jobs in the mining sector alone and then of course there will be secondary job losses in local business. Talk of alternative green jobs is nonsense. The pay in such jobs will be much lower, and that is something that the Labor Party never tells people. They will be a long way away, for the most part, from present centres of employment. The talk of alternative green jobs really is not realistic at all.

The carbon tax will progress to an ETS in 2015—or that is what we are told—and it will be the highest costing ETS in the world, with only New Zealand and the EU having ETSs presently, both of which are small by comparison to what is proposed for Australia. The big flaw in this proposal to have an emissions trading scheme is that none of our major trading partners will have either an ETS or a carbon tax—that is, the United States, China, South Korea, India and Japan will not be going down this pathway. The question will be: who will Australia trade carbon credits with? The answer will be: no-one. And the Australian people will have to pick up the cost of this enormous tax.

Last month the Minerals Council published an article outlining the extensive damage to jobs that would be caused by a Gillard government carbon tax. It stated that in Australia just 93,000 employees out of a total manufacturing workforce of over a million would receive assistance under the Jobs and Competitiveness Program, the government's primary initiative to safeguard trade exposed industries. Further research undertaken by the Minerals Council compares the Gillard government carbon tax with the European Union's emissions trading scheme, illustrating the widespread negative outcomes for our economy. Under the EU scheme, 48 per cent of manufacturing value added is covered by industry assistance programs. In Australia only 22 per cent of manufacturing value added will be eligible for assistance. Under the EU scheme 78 per cent of manufactured exports will be eligible for safeguards to ensure they remain competitive under carbon pricing. In Australia only 41 per cent will be covered. Under the government's own figures three million Australian households will be worse off under the carbon tax. Analysis by the WA Treasury shows that over half of WA households will be worse off under a carbon tax as the government's supposed assistance will not fully compensate households for increases in the cost of living.

Today really is a black day for Australia. Here in this house we are debating a piece of legislation based on a lie. (Time expired)

3:20 pm

Photo of Trish CrossinTrish Crossin (NT, Australian Labor Party) Share this | | Hansard source

It is quite exciting to be standing here in this chamber debating the carbon pricing initiatives that the Gillard Labor government was able to get through the House of Representatives today. It is a very historical day in this nation because this will go down in history as one of the major reforms, along with Medicare, superannuation and a range of other initiatives that a Labor government federally, through history, has been very proud to initiate.

Let me start with a quote. Once upon a time there was a senator in this chamber, back in November 2009, that said:

One way of avoiding the volatility of an emissions trading scheme would be to have a carbon tax. A carbon tax provides a very steady and known price for carbon, if you like, which is only varied by varying the tax. That tax can be set at a level that allows renewable energy systems to be competitive.

As Senator Abetz might say, 'Who would have said that?' That is a quote from Senator Alan Eggleston in November 2009. In 2009 Senator Eggleston was spruiking the benefits of a carbon tax. I could go to a quote from Senator Michael Ronaldson, from Senator David Johnston, from Senator Brandis and even from you, Senator Fifield, if you would like. In fact, this is what you said, Senator Fifield, back on 7 May 2009: 'So why do you think we are against an emissions trading scheme? It was our policy. The coalition has committed to an emissions trading scheme since Malcolm Turnbull was environment minister. The difference between ourselves and the government is that we don't see an emissions trading scheme as an end in itself. We see it as part of a range of measures to reduce global emissions. The important thing is to get the ETS right.' He went on to say: 'It's not new that the coalition support an ETS. We have done for some time.' You see, that is the problem we have with the opposition and that we are unfortunately confronting in this chamber. Senator Cameron is right: on the day our carbon pricing legislation goes through the House of Representatives and we are taking note in the Senate—and they roll out Senator Boswell, who clearly does not understand what we are talking about, has no argument on the basis of facts and seeks to impugn senators personally to get his message across—we have a consistent message from the coalition. Their leader, Mr Abbott, in the last 2½ years has had no fewer than eight different positions on a carbon price. And that is leadership; that is consistency! I would not have thought so. First of all, in an article in the Australian on 24 July 2009, Mr Abbott supported Mr Howard's decision to not take an ETS to the 2007 election. He supported Mr Rudd's proposal for an ETS the very same month in 2009. Of course, that is when all these senators opposite me were wheeled out, backing the then position of Mr Howard and Mr Abbott. Then, on 27 July, just three days later, Mr Abbott opposed an ETS. Two days later he supported a carbon tax.

Let us fast forward to 2 October 2009, when Mr Abbott admitted that this was all about politics. Remember? 'Climate change is crap,' I think he said. Two days after that he said that an ETS is a sensible policy. Let us now fast forward to November 2009, a month later, when he challenged Mr Turnbull on the ETS. We all know what happened. The climate change sceptics on that side got their way. If you were a supporter of climate change, you very quickly had to become a sceptic or else you had no career in the opposition.

Now, since the election in 2010, Mr Abbott is totally against a carbon price. So in 2½ years there have been eight different positions on a carbon price. The Australian people cannot believe the coalition's position, because it is never consistent. Not one month goes by when the coalition has a consistent position on this policy issue—this major, incredibly important environmental issue of tackling climate change, along with the rest of the world. (Time expired)

3:25 pm

Photo of Sue BoyceSue Boyce (Queensland, Liberal Party) Share this | | Hansard source

This is a very sad day, despite what Senator Crossin might like to tell us—not because the coalition lost the vote on the carbon tax in the House of Representatives but because the Australian people have lost a great opportunity to develop our economy; they have lost the ability to control our resources and our growth for the next 40 years. It is a shockingly bad day for Australia.

It would appear that Senator Crossin and Senator Cameron join Senator Wong and the Prime Minister in being completely delusional about what they are going to achieve here. Why would we expect the Prime Minister to be anything else? We cannot believe what she says because this tax, despite her frantic efforts to say otherwise, continues to be based on an out-and-out lie. So why would we be surprised that this government is delusional about what will be achieved? Senator Wong would have us believe that the economy and the number of jobs will grow under this carbon tax proposal of the government's. Perhaps she should check with a few other people before she says this—and not just the opposition.

In my own state of Queensland we now have a large number of state owned corporations telling us about the losses they are going to have under the carbon tax. Of course, this information has not been supplied openly, in the great tradition of the Gillard Labor government, hiding its Treasury modelling, kicking and screaming and shrieking at any attempts to get real information. This information has only become available through right-to-information actions undertaken by the Courier-Mail, which reported that Queensland Rail expects that its costs will go up by more than $5 million per year for the next three years.

In Queensland we have already seen the values of the state owned power generator, CS Energy, and of Stanwell Power and Tarong Energy written down by more than $1.1 billion because of the carbon tax. The Gladstone Ports Corporation has told us that its costs will rise by $2.4 billion next year. All of this adds to the costs of transport and to the costs to householders. No-one, including Minister Wong, could possibly believe that the economy and the number of jobs will grow.

Perhaps one of the most classic examples of this—and one of the most ironic—is BlueScope, which had intended to build a co-generation plant that would cost $1 billion and reduce the company's emissions in Port Kembla by nine per cent. They have now decided that it no longer makes economic sense to build that plant and that they will build the plant in stages, not in one go. BlueScope has said that instead it will close down one of its blast furnaces, and that will halve emissions. That is great for the government: it has halved emissions. What a great way to achieve it! A thousand jobs are out the door but, gee, we have halved emissions. I am sorry, Minister Wong, but you cannot have growth in the economy and in jobs with this tax. There is a much better way to do this. The coalition has always supported the putting of a price on carbon. It is not this price; it is not this way; it is not at this time. The direct action plan of the coalition, with encouragement for the development of renewable energies, will actually help the environment of Australia without costing thousands and thousands and thousands of jobs. It is a travesty to hear this government talk about jobs and manufacturing and suggest that in any way they have taken into account the real costs that will be forced on the Australian people on this extraordinarily sad day. Manufacturing is in the doldrums now, manufacturing will get worse and this government has no idea what to do about it.

Question agreed to.