Greg Hunt (Flinders, Liberal Party, Shadow Minister for Climate Action, Environment and Heritage) Share this | Hansard source

I take my beginning from where the minister left off with his reference to the real world, lived experience of the carbon tax. I note in particular the decision of the New South Wales Independent Pricing and Regulatory Tribunal to authorise electricity price rises of 18 per cent from 1 July. I note that, as part of that, in the average case across the state at least 50 per cent of that increase will be as a consequence of the carbon tax and that, in the case of Integral Energy, up to 85 per cent of the price rise will result directly and solely from the carbon tax.

The rise in prices is going to occupy almost the entire amount of the 10 per cent allocated by the government in its modelling. I refer specifically to Strong growth, low pollution:modelling a carbon price: update,from late 2011, and, in particular, to page 12, where it says, 'Over the first five years of the carbon tax'—not just the first day—'the price rise as a consequence of the carbon tax on electricity will be 10 per cent.' Is the minister really saying that there will be no further price rises as a consequence of the carbon tax in the electricity space? I refer to the fact that the government's own modelling shows a more than 25 per cent increase in the carbon tax on electricity between now and 2017. In particular, the most recent budget showed that the rise would be from $23 to $29 on the carbon price by 2015-16.

Will the minister deny that that 25 per cent plus increase in the carbon price will have any impact on future electricity prices? Will the minister deny that the auctioning of forward permits in April 2014 and beyond for the electricity sector will have any impact on electricity prices? This is particularly so given that the Electricity Supply Association of Australia warned last year that this additional forward auctioning of permits would add another 10 per cent to the price of electricity immediately. So I refer to the fact that five years worth of electricity price rises will have occurred on day one. Does the minister believe that there will be no impact from the additional 25 per cent increase in the carbon tax and does the minister believe that there will be no impact from the auctioning of forward permits, which the Electricity Supply Association of Australia has predicted as of April 2014 will have a further 10 per cent impact on prices?

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