Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

asked the Minister representing the Minister for Climate Change and Energy Efficiency, upon notice, on 22 August 2011:

In regard to the Clean Energy Future document, 'What a carbon price means for you', which was sent to all households:

(1) In relation to the paper used for the document:

(a) where was the paper sourced;

(b) was the paper made in Australia, if not, where was it made;

(c) where did the pulp that made the paper originate;

(d) what was the type of paper used;

(e) what was the total cost of the purchase of the paper; and

(f) which company was successful in providing the paper.

(2) With reference to the statement 'China is now the world's largest manufacturer of both solar panels and wind turbines' (p. 5), what quantity of these solar panels and wind turbines are manufactured for export to other countries in the world, including Australia.

(3) With reference to the statement that 'by 2020 the carbon price package will take 160 million tonnes of pollution out of the atmosphere every year'(p. 6), does that statement take into account the possibility of any carbon leakage whatsoever from manufacturing moving from Australia to other countries.

(4) With reference to the statements 'average incomes grow strongly' and 'national employment is projected to increase by 1.6 million jobs by 2020' (p. 7), does this modelling indicate that the growth in average incomes and employment will be slower than if there had not been a carbon price imposed; if so, why was this not stated in the document.

(5) With reference to the statement 'some businesses will pass on the carbon price' (p. 8), can a detailed list be provided of businesses which are anticipated will not pass on the carbon price.

(6) Does the document refer to the increased marginal tax rates increasing:

  (a) if not, why not; or

  (b) if so, by how much will the marginal tax rates increase.

(7) With reference to the statement that '9 in 10 households will receive tax cuts, increased payments, or both' (p. 14):

  (a) is it acknowledged that not all of those 9 in 10 households will in fact be better off; and

  (b) is it a fact that less than 50 per cent of the population will be better off if Treasury's modelling and assumptions are accepted.

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

The Minister for Climate Change and Energy Efficiency has provided the following answer to the honourable senator's question:

(1) In relation to the paper used for the Clean Energy Future: What a carbon price means for you document:

  (a) The paper was sourced from Australia.

  (b) The paper was made at the Australian Paper Mill in Maryvale, Victoria.

  (c) The pulp originated in Australia and was manufactured at Australian Paper Maryvale from wood sourced from VicForests and Hancock Victorian Plantations. Both suppliers hold Programme for the Endorsement of Forest Certification chain of custody and both suppliers are accredited to the Australian Forestry Standard.

  (d) The type of paper used was 100 grams per square metre Envi offset Carbon Neutral.

  (e) The total cost of the purchase of the paper was $1,080,000.00 (GST exclusive).

  (f) Australian Paper was successful in providing the paper.

(2) According to the International Energy Agency document Technology Roadmap: Solar photovoltaic energy, 95 per cent of China's photovoltaic systems are manufactured for export. According to the Renewable Energy Policy Network for the 21st Century document Renewables 2011: Global status report, China was the top installer of wind turbines and by the end of 2010 had the largest renewable energy capacity (including hydro) in the world.

(3) The statement, 'by 2020 the carbon price package will take 160 million tonnes of pollution out of the atmosphere every year', refers to the reductions in Australia's net national emissions.

(4) As stated in the Treasury modelling report Strong Growth, Low Pollution: Modelling a carbon price, the modelling shows that with a carbon price real wages grow slightly more slowly than without a carbon price and the level of employment is largely unaffected. However, this exercise modelled the impact of a carbon price on the economy but did not model the impact of climate change on the economy. For a net assessment of the impacts of climate change policy on both the economy and people's welfare, both would need to be taken into account. Previous studies which have done this, such as the Garnaut Review (2008) and the Stern Review (2006), both conclude the costs of action are smaller than the costs of inaction. The Clean Energy Future: What a carbon price means for you document only provides a summary of the modelling results. The reader is directed to the Treasury modelling report, Strong Growth, Low Pollution (2011), for more information.

(5) The Treasury modelling was undertaken at an industry level. As a result, it is not possible to provide details of individual businesses. However, businesses which are not anticipated to pass on carbon price impacts are in heavily trade exposed industries and for this reason will recieve assistance through the Jobs and Competitiveness Program.

(6) Page 12 of the Clean Energy Future: What a carbon price means for you document, says, 'While some statutory tax rates will be higher, the combined changes mean this will better match the effective rate that a lot of taxpayers are actually paying at the moment. All taxpayers under $80,000 will pay less tax, and those on higher incomes will pay no more tax than they do now.' The document further directs readers to the Clean Energy Future website at: www.cleanenergyfuture.gov.au/wp-content/uploads/2011/08/What_a_carbon_price_means_to_you.pdf, where more information about the changes to the statutory personal tax rates and thresholds is available.

(7) (a) Page 14 of the Clean Energy Future: What a carbon price means for you document states that 'around 90 per cent of households will receive assistance to help meet the impact of the carbon price on their costs of living'. The inside cover states that, 'almost 6 million households will be assisted to meet their average price impact', of which, 'over 4 million households will get assistance that is at least 20 per cent more than their average price impact'.

  (b) Two in three households will get some combination of tax cuts or increased payments that cover their expected average price impact.