Senate debates

Monday, 25 June 2012

Questions without Notice

Carbon Pricing

2:49 pm

Photo of Richard ColbeckRichard Colbeck (Tasmania, Liberal Party, Shadow Parliamentary Secretary for Fisheries and Forestry) Share this | | Hansard source

My question is to the Minister for Finance and Deregulation and Minister representing the Minister for Climate Change and Energy Efficiency, Senator Wong. What does the government say to businesspeople around Australia like the operators of a garden nursery and rural supply business in Sorell, in my home state of Tasmania, who are putting up signs telling their customers that they are being forced to increase their prices as a result of the introduction of Labor's carbon tax on 1 July?

2:50 pm

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

I will see whether there is anything further I can get in relation to nurseries per se, but in terms of increases in prices I think the government has been very upfront about the fact that the introduction of a carbon price will have an effect on prices—but it is a small effect; it is an average impact on the CPI of 0.7 per cent, and we are reflecting that fact in the tax cuts and additional assistance we are providing to families.

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | | Hansard source

You're not providing any assistance to businesses!

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

I will take the interjections from the other side, because they really demonstrate a lack of understanding of two things. One is the concept of relative prices—and I suggest they read a very good speech by Mr Turnbull, on the CPRS from memory, where he actually went through this, for those who might have forgotten why price signals are efficient. The second is that the government has always been upfront about there being an impact on prices. It is not a significant impact—as I said, it is substantially less than the GST impact—and that is reflected in the assistance package the government has put into place, which includes, amongst other things, as the senator would be aware, a tripling of the tax-free threshold. I don't have the figures with me about the number of Tasmanians we estimate who would benefit from that, but I would suggest to the senator they would be substantial. We also are increasing the pension and the Disability Support Pension, and there are additional payments to people who receive family tax benefits and other allowances, to reflect the additional price impact.

There is no cost-free way to reduce emissions. The coalition's policy would cost Australians more. The government's policy is economically efficient and lowest cost and ensures, particularly, that low- and middle-income Australia are assisted.

2:52 pm

Photo of Richard ColbeckRichard Colbeck (Tasmania, Liberal Party, Shadow Parliamentary Secretary for Fisheries and Forestry) Share this | | Hansard source

Mr President, I ask a supplementary question. Does the minister agree with her colleague Mr Combet that a business, such as this one, displaying such a sign is quite frankly ridiculous? Does she believe Mr Combet acted appropriately when he said, 'If you give me their name and address I will have the Australian Competition and Consumer Commission talk to them today, because that is utterly ridiculous. It is like misleading conduct'?

2:53 pm

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

Mr Combet is absolutely right in suggesting that—

Opposition Senators:

Opposition senators interjecting

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

Do you want the answer or not?

Opposition senators interjecting

Obviously they do not want me to speak.

Photo of John HoggJohn Hogg (President) Share this | | Hansard source

Order! Ignore the interjections. Interjections are disorderly. I remind senators of that. The minister has 45 seconds remaining on the clock.

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

Mr Combet is absolutely right in suggesting that any misleading claims, whether it be in relation to carbon or other—

Photo of George BrandisGeorge Brandis (Queensland, Liberal Party, Shadow Attorney-General) Share this | | Hansard source

That is not the point. He is assuming it is misleading.

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

If Senator Brandis would take a chill pill we could finish the answer.

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

I think we will have to start calling you 'Penny petal'.

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

I am being called precious and my mother always told me that I am! What I was trying to say is that Minister Combet is absolutely right in suggesting that the ACCC will obviously consider any misleading statements made by businesses, whether it is in the context of carbon pricing or otherwise, and the government has provided additional resources to ensure that those claims are able to be considered.

2:54 pm

Photo of Richard ColbeckRichard Colbeck (Tasmania, Liberal Party, Shadow Parliamentary Secretary for Fisheries and Forestry) Share this | | Hansard source

Mr President, I ask a further supplementary question. Given that the company concerned has spoken to the ACCC and explained that Labor's carbon tax will significantly increase freight costs, because sea freight is subject to the carbon tax—a fact that Mr Combet seems blissfully ignorant of—and Tasmania is surrounded by water, surprisingly, and they have been told there is nothing wrong with their sign, does the minister still agree that Mr Combet acted appropriately, or is this just another example of the jackboot bullying that small business can expect from this government if the carbon tax forces them to increase prices?

2:56 pm

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

I can confirm that I am aware, and I am sure Mr Combet is, that Tasmania is surrounded by water. I reject absolutely the 'jackboot' reference, and I think that is absolutely tasteless.

Opposition Senators:

Opposition senators interjecting

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | | Hansard source

I again remind those opposite that they are guilty in this debate of massively overestimating and massively overstating the impact of a carbon price. I think Australians will see next week and beyond that the scare campaign those opposite have been engaged in has been massively dishonest. That is what people will see. To suggest that whole towns would be wiped off the map and whole industries would be shut down will be demonstrated to have been utterly dishonest. (Time expired)