Michael Keenan (Stirling, Liberal Party, Shadow Minister for Justice, Customs and Border Protection) Share this | Hansard source

Many members of this place would follow international affairs and they would have heard when they woke up this morning that overnight there has been an emergency teleconference between the Greek Prime Minister, the German Chancellor and the French President to talk about Greece defaulting on its debt obligations. At the same time there are banks in France exposed to Greek government debt that have had their credit ratings downgraded, and the President of the World Bank, Robert Zoellick, has expressed grave concerns for the health of the global economy. The reaction to this of most governments around the world is to look at what they can do domestically to try and limit the impact of what could be a very severe second phase of a global economic downturn. European countries in particular are looking to slash government spending and looking at ways they can put their rather bloated budgets back in balance. Other countries around the world are looking at how they might take defensive measures to protect their populations from what could be a very torrid global economic environment. At the same time as this massive global uncertainty, at a time in Australia when business confidence has hit all-time lows, it is astonishing that we in this parliament are discussing a series of bills that are going to impose a great big new tax on everything and also impose a very substantial regulatory burden on business. These bills will touch every aspect of everybody's lives in Australia, yet the absurdity of us discussing this at a time of great global uncertainty does not seem to have occurred to members of what is a rapidly disintegrating Labor government.

I can understand that there is some reluctance for Labor members at the moment to leave their electorate offices and go out to talk to people within their communities, because, if they are getting the same sort of feedback as I have been getting as I move around my electorate of Stirling, then clearly it would be a deeply unpleasant experience for them. But they really need to do that to understand the enormous disconnection between what people are actually feeling in their communities and what we are discussing as a parliament here today. If they were to talk to any businesses in their electorates, whether they be small, medium or large, they would tell them, in most cases—not in all cases—that this is the worst business and trading environment that people have ever faced. Even in my home state of Western Australia, which people would rightly assume is doing better than many other parts of Australia, there is an enormous lack of confidence within the business community and, if you are dealing with sectors outside the mining industry, people will tell you that it is just the worst environment that they have ever seen. Yet the response of their federal government is to impose an economy wide tax that is going to touch every single aspect of our lives. This will be the world's biggest carbon tax, apparently because Australians are the world's largest polluters, something that I think is factually incorrect.

Many of the macro arguments against this tax have already been placed very firmly on the record by many of the previous speakers on this side of the House, so I want to talk directly about what this tax will mean for my constituents in Stirling and what it will mean to my home state of Western Australia. Every time I meet with constituents I am told more often than not that everyone is tightening their belts, that they are suffering under the increased cost of living pressures. The cost of living is something that can be very hard for federal governments to do something about, but surely a good rule for this parliament would be to do no harm—whereas this package of bills will deliberately and directly increase the costs of family budgets.

I want to give the parliament some examples of the businesses that I have been talking to in my electorate and some of the feedback that I have from small businesses, in particular, who are greatly concerned about what the carbon tax is going to mean for them. I recently did a small business survey and I want to give the House some of the feedback that I have. We contacted all these small businesses directly to confirm with them that they are happy to have their comments recorded in Hansard and to be part of this speech.

One of my officers spoke yesterday to Mr Rex Sajich from West-Side Automatics, who lives in Stirling. He has been working in the automotive industry for over 30 years. Mr Sajich's business is experiencing a very tough year because his operating costs continue to rise. He faces losing an employee whom he might not be able to afford to replace. We rely on small businesses like Mr Sajich's to keep the economy afloat, yet he has asked why he should be on the receiving end of a bad tax that will kill small business. He has also asked why Australia's small businesses—some 750,000 of them—will receive no direct compensation for the massive jump in electricity prices that will be imposed by this carbon tax.

Mrs Francine Kapoulitsas from Amelia Heights fish and chip shop works and raises her family in Stirling. Mrs Kapoulitsas is already paying over $600 a month in electricity bills for a business that trades only 30 hours a week. After the introduction of the carbon tax, Mrs Kapoulitsas does not know whether she will be able to keep the doors open. She asks why a family-run business such as hers should be forced to close up shop because of a bad tax that offers no compensation to the backbone of the Australian economy. Mr Derek Downie from Steenes Automotive in Balcatta cannot understand why the federal government is willing to compensate individual households for the increase in electricity costs but refuses to help small business cope with the significant increases in these costs.

Mr Martin Steere from Karinga Electrical Systems in Osborne Park is concerned about how the carbon tax is diminishing confidence levels in the business community. He believes that nobody within the business community understands the real costs of the new tax. He asked why the Labor government is not addressing the real concerns facing the Australian economy at present but, instead, introducing another tax that small business cannot afford to pay. In the same vein, Mr Tony Allender from Specialised Mechanical Services in Osborne Park simply said that this carbon tax will be the final straw that puts him out of business. He asked when the government will acknowledge the fact that small businesses are the ones that are failing as a result of Labor's new tax. Mr Allender pointed out that there is no point giving him a rebate on his household electricity bill when he cannot afford to pay that bill if his business goes bust.

Another Stirling business owner who will be affected by the carbon tax is Mr Brett Rice from Green Energy systems in Balcatta, who has rightfully pointed out that it is the job of the government to provide neutral trading conditions for business so that consumers should not be fearful to spend their money, but this Labor government cannot even do that. Mr Rice's biggest concern is what the real costs will be for his business once the Gillard government introduces its toxic carbon tax. Mike Maumill is concerned at what the carbon tax might mean for his business, Capri Technologies, and Mr King from the Dianella Poultry Shop noted, 'It's the big guys that may be able to absorb some of the passed down costs,' but he cannot afford to pass on costs of his small business to his customers.

All in one day my office spoke to these eight businesses, but there are many businesses in a very similar situation in Stirling. They have every right to be concerned about this carbon tax and what it might mean for them and their employees. If you ask the Prime Minister, she will say that they have no reason to express concern. This is of course absolute nonsense, because these people know they are going to be worse off if this bill passes this parliament. Of course, no-one sitting on the Labor side of the House has any understanding of how these small businesses might feel, because to them small business is a completely foreign land. They have never lived it and they do not understand the unique pressures associated with it. They have never started, owned or run their own small businesses. I do not think there would be any demographic—

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