Ewen Jones (Herbert, Liberal Party) Share this | Hansard source

Under this government, we have seen prices skyrocket across the board. We have seen food, electricity, fuel, rent and mortgages all going up. Now we are about to see the introduction of the latest of the taxes by the government that delights in a succession of new taxes and levies designed to feed their tax and spend philosophy, the carbon tax. I accept the science; we accept the science. I avail myself of all the information. I listen to both sides, not just one side. I went to the talk given by the commission yesterday. I sat there and listened to it. I read the books. I get it—there is a carbon problem in the atmosphere. But this is not about carbon—this is about jobs; this is about industry. And this is not theory; this is what is actually happening.

The minister said that it was all about Tony Abbott running around the country saying that this, that and the other thing is going to happen. I will tell you what actually happened last week. Xstrata announced that it would close its Townsville copper refinery because it is cheaper to process it overseas. They have said that this was not due to the carbon tax, but no-one can say that the carbon tax is going to make it cheaper; no-one can say that the carbon tax is going to make it easier for business to comply. This is what the CEO of the Queensland Resources Council, Michael Roche, said:

What the Xstrata decision does demonstrate is that even very energy-efficient operations such as those operated by them—

Xstrata's copper refinery—

in Queensland cannot compete against cheaper alternatives. My fear is that these closures are a foretaste of what will follow if the federal parliament agrees to impose an uncompetitive carbon price regime on our trade-exposed resource sector industries. It is not too late for the federal government to embrace a better way–one that safeguards our global competitiveness.

This tax is attacking Townsville's copper refinery, where there are 170 direct jobs. There are 70 contractors. They sell $140 million worth of copper internationally and locally throughout the year. The ore will still be mined. It will still be made into concentrate. It will still be refined—just not in Australia. Who is going to go over to China or to Vietnam or wherever it is going to be processed and ask what the carbon processes are? Is it going to be the EPA? Are they going to go over there and say, 'I'd just like to check your carbon emissions?' Australia will not care once it is offshore. Once the jobs are gone, we will not care. Our emissions will be down and worldwide emissions will be up, with a net result of more pollution for the world. There are two other refineries in the city of Townsville—one in my electorate and one in the neighbouring electorate. One is Sun Metals: 300 direct jobs, 1,500 indirect jobs and $300 million in annual sales, of which 80 per cent is exported. They are a world's best practice zinc refinery: 80 per cent exported, jobs in Townsville, industry in Townsville, real estate—everything that relies on it it in Townsville.

Queensland Nickel is responsible for over 900 direct jobs and 2,300 indirect jobs—4.5 per cent of gross regional product in Townsville; $600 million per year into Townsville's economy. It was estimated, when it looked like BHP were going to shut it down before Clive Palmer came to the rescue and kept that place open, that the impact on our local economy, had that place closed and nothing happened there again, would have been $4.5 billion.

Queensland Nickel is the perfect example of why this carbon tax is so bad. Queensland Nickel is a 100 per cent import-export business. They buy the ore internationally, on the market from New Caledonia. It comes into Australia and they refine it, using world's best practice, including sun drying and gas drying of the ore before it is refined. It is then sold on the international market. So if the carbon price comes in, and it makes our costs here such that we cannot buy the ore, we cannot process it. If the carbon tax comes in and we do get the ore, but our costs are so high that we need to get $15 a pound for it, whereas currently the international market is paying $11 a pound, we will not be competitive and jobs will be lost.

What is the alternative? There are two other refineries that do it exactly the same way as Queensland Nickel: one in Cuba and one in Brazil. The one in Cuba you can look up on Google Maps, and you can see that no-one goes through that bay. The pollution has killed absolutely everything. It is a dirty, dirty process. The other one is in Brazil. People in the nickel industry will tell you that it is such a dirty plant, so badly polluted that you can almost walk across the smoke. The other alternative is to sell it to China. China will take that ore. They will not use the same process; they will put it in a big coking furnace and burn the living daylights out of it to refine the ore. All three processes result in a net increase in pollution. All three processes do not stop the ore being refined. All three processes do not stop nickel being needed on the international market. What this carbon tax will do is stop it being processed in Townsville, lose 900 direct jobs in Townsville and 2,300 indirect jobs—and take $600 million per annum from the Townsville economy. And the ore will still be processed. It will still be mined in Mount Isa, it will still be turned into concentrate and it will still go overseas.

I want to tell you about a local businessman in Townsville, Brad Webb, of BM Webb Group. He has 120 staff. He pays over $150,000 a week in wages. He has over $100 million in fixed assets, ranging from commercial buildings to quarries and fabrication. He reinvests every cent in Townsville. His words to me were, 'Mate, it just gets too hard.' With the flick of a switch, he could just turn it off, take all his business overseas and live off the passive income here and reinvest overseas. This tax will close local industry and export jobs overseas for no benefit at all.

The member for Melbourne said on Lateline:

Let's look at the Great Barrier Reef, where there's 63,000 people's livelihood dependent on that - more than the number of people employed in the coal mining industry …

So what does it look like? Well it looks like an economy with a healthy tourist sector, a healthy services sector and a renewable energy sector that's the envy of the world.

Can I tell you, mate: three industries provide employment for 4,000 people in Townsville at the moment. Our tourism industry is struggling and Cairns's unemployment is 12 per cent. Townsville's is 8½ per cent and the Gold Coast is at eight per cent. And you want, Mr Bandt, member for Melbourne, my little green mate—I would call him a leprechaun, but he doesn't have a pot of gold, because that would require mining!—these 4,000 people to jump into a boat and dive off boats off the Great Barrier Reef. He is a joke. He will not be happy until everyone is dressed in a black skivvy, riding a Vespa and drinking soy lattes in Lygon Street.

The Assistant Treasurer said he is focused on jobs. Of course he is focused on jobs: 20,000 extra public servants. The Prime Minister standing there telling everyone they have to take a haircut, that everyone needs to take a cut—150 extra staff in her office! By jingo, talk about skills training. We have a Treasurer who is fixated and will not take his eyes off a surplus from riding on the back of the mining industry. But he will support this tax. He should hang his head in shame. He stands there and says, 'I will not take my eyes of the surplus; nothing can make me lose my concentration on the surplus—wow, a blue car!' That was not as funny as I thought it was going to be!

We have a government whose only policy is to stay in power. They would have done Graham Richardson proud! Not only does this mob say, 'Whatever it takes'; they will add: 'to whomever they like, for whatever reason they feel, to stay in power. This government says that it is a tax on the 1,000 big polluters. Plainly, this tax is a tax on the way of life of everyone in Australia and their livelihoods.

I would like to finish as the Minister for Immigration, and say, 'This government has no mandate, Mr Speaker! This government has not been straight with the Australian people, Mr Speaker, on this issue. You should stop this now and call for an election!' That is what you should do: stop this now and call for an election. You should stand up and be straight with the Australian people. You have never been straight with the Australian people. You should start now, do the right thing: face up and say, 'Look, we got it wrong; we want to do the right thing and call an election now.'

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