Bob Baldwin (Paterson, Liberal Party, Shadow Minister for Tourism) Share this | Hansard source

The contribution by the member for Reid fits in perfectly with the mantra chant from all of those from the government benches. They like to use the word 'fact' regularly. Mr Deputy Speaker Leigh, I would say to you that there are facts, statistics and more mendacious statements coming from this government each and every day in relation to this carbon tax. This carbon tax is a $9 billion a year tax from which there is no escape. In the first four years some $36 billion will be collected. Contrary to what the member for Reid and others have said, despite this carbon tax, Australia's emissions will actually increase from 578 million tonnes in 2010 to 621 million tonnes by 2020. That is because electricity and gas are essential services. Instead of reducing Australia's emissions, firms will have to purchase 94 million tonnes of carbon permits overseas by 2020. A great deal of effect that is going to have for our local environment!

I quite often hear members opposite saying that there is no impact or only marginal impact on businesses. I am going to give some real life examples from businesses in and around my region and my portfolio. On 2 October Tony Abbott and I made a visit to the Weathertex plant at Tomago to inspect one of the oldest continuous employers in the region. It used to be called the Masonite factory but now produces Weathertex boards for both the domestic and international markets. Paul Michael, the Managing Director and CEO, has grasped an old business and reinvented it through putting in massive investment. Today it employs around 100 locals and generates $23 million in domestic sales and $2 million in exports. Paul Michael indicated that, even though the business has a negative carbon footprint, they are being slugged with a half a million dollar carbon tax bill across their coal, gas and electricity. He said:

We were a reasonably profitable business and now we are not quite so profitable, which is not going to help us expand and develop new products because of the carbon tax.

What Labor does not understand is that many businesses like Weathertex are competing in price sensitive markets. Any increases in production costs will make them less competitive which will mean fewer sales and therefore cost Australian jobs. What was it that Greg Combet, the Minister for Climate Change and Energy Efficiency, who is the real master of mendaciousness, replied? He said:

Businesses in the Hunter are generally doing quite well. They are able to pass on the modest cost increases from the carbon price in their prices.

I say this to the master of mendaciousness: if he thinks that half a million dollars for a business that employs 100 people is a modest cost increase for a small business, then I would ask what he considers to be a large increase. I would suggest that the minister starts talking to local businesses and families, because I can tell you that many of them are doing it tough. As for Weathertex's export business, this government has put a reverse tariff on with their carbon tax.

The story goes from bad to worse. In my electorate the largest dairy is owned by Dallas Clarke and is based at Wallalong. This week he announced to all his staff that he is closing his 700-head dairy at the end of November as he cannot afford to continue to operate. There were two factors: No. 1 was the low cost of milk in the supermarkets, and the straw that broke the camel's back was the increase in electricity costs. Dallas took advantage of dairy deregulation knowing that he had to increase his herd size to get critical mass and ability to amortise his costs. He invested millions of dollars to make sure that he survived. As I said, the carbon tax is the straw that broke the camel's back. Just the carbon tax increases alone in his electricity bill were $609 in July and $600 in August, and that is not to mention the increases in the off-peak rates that have risen out of all proportion. Those that know something about the dairy industry know that they milk during the off-peak rate period. His power bills have gone up from $4,850 a month to $6,000 a month making his business unsustainable. His milk prices have dropped to around 45c per litre yet his electricity prices have increased out of sight.

I am led to believe by the dairy industry that others in the industry are in the same position and are looking at closure. Yet, again, what has the master for mendaciousness said to these business operators? He said:

Businesses in the Hunter are generally doing quite well. They are able to pass on the modest cost increases from the carbon price in their prices.

I say this to the minister: how can Dallas pass on the price when he is a price taker and not a price setter? He is a price taker and that is what the dairy industry is. So, Minister, because of your actions we in the electorate of Paterson lose our biggest dairy, we lose jobs, we lose investment, and sadly and worst of all, Dallas loses out.

There is no escaping this insidious tax. My community is affected. Stroud Community Lodge has seen their electricity bills increase for the July-September quarter from $13,700 in 2011 to $16,840 this year, yet they are using five less billing days and 652 kilowatt-hours less for the same period. So I ask: how does a community-run nursing home pass on its costs to the people in its care? Well, they just have to absorb it. It means either cuts in services or cuts on jobs. Again, the master for mendaciousness would say that people just need to increase their prices. I have to say that in a low-economic community like Stroud, which is made up predominantly of farmers and ex timber workers, where do they get the money to pay increased prices? What we are going to see is, yet again, another business, a community-run business, massively affected.

It does not end there. Long-term food security is a massive issue for this nation. I have always supported aquaculture as a way of guaranteeing partial supply. I was contacted by Nick Arena of Tailor Made Fish Farms at Bobs Farm on 30 August after concerns were raised that the carbon tax is undermining their business. I visited the facility. Tailor Made Fish Farms is a successful local business involved in innovative aquaculture and hydroponic technology producing fish and vegetables for the domestic market and proven technologies for the international market.

Tailor Made Fish Farms is the largest producer of barramundi in New South Wales and is internationally considered an industry leader in its field, consulting with companies in Australia and abroad. Affordable electricity is crucial for the ongoing viability of businesses like Tailor Made Fish Farms, due to the very competitive and price-sensitive market.

Managing Director, Nick Arena, said he is suffering from bill shock after receiving his monthly electricity bill. It has risen dramatically from $7,149 in June to $9,535 in July. I have the bill here. Over $1,000 of this increase has been itemised in the bill as 'carbon charge'. The average electricity charge for the business has risen from 15 cents a kilowatt hour to 19.4 cents a kilowatt hour since the carbon tax was imposed. The fishing industry is an extremely price-point-sensitive market, largely being a price taker rather than a price setter. Nick's business will be forced to either absorb the additional carbon tax cost, reducing profit margins, or pass on the cost to consumers, whereby reducing competitiveness and jeopardising jobs.

When I asked Nick what the new carbon tax costs will mean for his business, he said: 'This is going to impact on our profitability, it is going to push up our cost of production and it is going to make us less competitive.' He went on to say, 'We will seriously think about not doing any more expansion.' Wonderful. This carbon tax is going to be great for our communities, jobs, business and investment. Here are people with their own skin in the game who understand the impact. Most politicians on the government's side have never worked a real job. They have gone from university to union movement to parliament. They have no real life experience. They have nothing out of the hip pocket invested in business.

We see business stymied in its growth. We will see job losses. I say, 'Well done' to the Prime Minister and to the master of mendaciousness, Greg Combet, because if businesses like Tailor Made Fish Farms—

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