Sussan Ley (Farrer, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer the Prime Minister to criticism of his great big new tax on mining from respected financial commentator, Mr Terry McCrann. Mr McCrann has stated that—

Government Members:

Government members interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! This is question 13 at 25 past three. I have plenty of time, but if the House does not come to order, we will wait.

Sussan Ley (Farrer, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer the Prime Minister to criticism of his great big new tax on mining from respected financial commentator, Mr Terry McCrann. Mr McCrann has stated that:

The so-called Resource Super Profits Tax is a case study of the Rudd Government in action. Of spin and outright deception, shameless and recklessly dangerous politicisation, and fiscal fiddling …

Does the Prime Minister agree with his Treasurer, who said yesterday—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The Manager of Opposition Business does not help anything, any bright idea that he has, by that behaviour. The member for Farrer has the call. She will be listened to in silence.

Sussan Ley (Farrer, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Does the Prime Minister agree with his Treasurer, who said yesterday that critics of the mining tax are:

… either lying to you or they are ignorant …

Is Mr McCrann lying or is he ignorant?

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

Where is the member for Goldstein’s press secretary when you need him? Up there behind the member for Farrer, doing this, doing this. Stop, for goodness sake! ‘Terry McCrann criticises Australian government economic policy’? Well, hold the phone! ‘Piers Akerman is a great fan of Kevin Rudd’. For God’s sake, let us just get real about this.

On the question of the debate about the resources super profits tax, there will be a range of views expressed out there in the community, in the commentariat, on the part of industry and on the part of mining companies. We have all sides of the argument participating in it. However, what we have on the part of those opposite is an entire policy briefing run out of the MCA. For the Deputy Leader of the Opposition to stand up yesterday and say that the mining industry should pay no more tax is an extraordinary statement. She is in effect saying exactly what the MCA want her to say. That is what is occurring here.

I think it is high time the Leader of the Opposition clarified what their policy is on this matter. Is the mining industry paying enough tax? Is it not paying enough tax? Until we have clarity about their alternative position, this debate is fundamentally hampered. Our plan is clear: funding better super for working families, funding tax cuts for Australian businesses, funding smaller tax for small business and funding the future infrastructure needs of the nation. That is where we stand. We do not know where you stand at all.

Sussan Ley (Farrer, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Mr Speaker, I seek leave to table the article ‘Rudd’s lost any claim to our trust’.

Leave granted.

Jim Turnour (Leichhardt, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Human Services and Minister for Financial Services, Superannuation and Corporate Law.

Honourable Members:

Honourable members interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

The Minister for Trade is reminded of his status. The member for Leichhardt has the right to ask his question in silence.

Jim Turnour (Leichhardt, Australian Labor Party) Share this | Link to this | Hansard source

What will be the impact of the Resource Super Profits Tax on Australia’s retirement incomes and are there any threats to Australia’s getting a fair share from our natural resources?

Chris Bowen (Prospect, Australian Labor Party, Minister for Financial Services, Superannuation and Corporate Law) Share this | Link to this | Hansard source

I thank the honourable member for Leichhardt for his question, because it does provide an opportunity to correct several statements from members opposite. The government’s superannuation reforms are crucial to boosting the retirement incomes of Australians, and these reforms are funded by the Resource Super Profits Tax. There are 8.4 million Australians relying on these reforms to boost their retirement incomes. A 30-year-old on average weekly earnings would have their retirement income boosted by $108,000 on their retirement.

There has been some commentary by members opposite about the effects of the Resource Super Profits Tax on people’s retirement incomes. The shadow minister against superannuation has made some comments. His commentary did not go to why the opposition is standing in the way of the boost to retirement incomes of Australians. The comments did not go to why the opposition is standing in the way of giving low-income earners their superannuation tax back. They went to a scare campaign. The shadow minister against superannuation—the member for Cowper—said this to the Coffs Coast Advocate:

We also must remember the collapse in mining share investment is having a domino effect right through the economy that will drive down super returns even further.

He is not the only one. The member for Goldstein said it, the member for North Sydney said it and the Leader of the Opposition said it. Now it is time for some facts which will show that the opposition’s scare campaign is simply sophistry. It is true that the value of Australian mining stocks has fallen since 2 May. It is also true that the value of stocks generally in Australia has fallen. It is also true that mining stocks around the world have fallen in value. The Australian materials index covering mining stocks has fallen by eight per cent since 30 April, the ASX 200 has fallen by 8.6 per cent and the financials index has fallen by 10.57 per cent. The Resource Super Profits tax has had a big impact on the financial services index.

It is also interesting to look around the world. As I said, the ASX 200 has fallen by 8.6 per cent, the FTSE has fallen by 8.7 per cent, Standard and Poor’s has fallen by 9.5 per cent and the Nikkei has fallen by 11.7 per cent. So the superprofits tax has really hit Japan hard. I have heard a lot of outlandish claims from the opposition over the past fortnight. I do not think I have heard the opposition claim yet that the Resource Super Profits Tax has caused the Greek debt crisis. I might have missed it. It would be about as outlandish as most of their claims. That crisis, which has caused stock market falls around the world, has not been caused by the RSPT.

The opposition say that the Resource Super Profits Tax is affecting superannuation returns. Let us see what the superannuation industry has to say to their claims. David Whiteley, the Chief Executive of the Industry Super Network, said—

Ms Julie Bishop interjecting—

I quote:

Asserting mining stocks have plunged as a direct result of the tax when all stocks have fallen to a similar if not greater degree is plainly deceitful.

The Deputy Leader of the Opposition says Mr Whiteley is a Labor hack.

Ms Julie Bishop interjecting—

She said he is a union hack. Let us see what that other union hack, John Brogden, had to say. John Brogden says of the argument that the mining tax is having an impact on superannuation returns:

It doesn’t hold up in the short term, and it won’t hold up in the long term. I am very strongly of the view that it is quite erroneous to link a negative outcome on mining to a negative outcome on superannuation.

That is what John Brogden said of the arguments that are being put by those opposite. I wonder if he is a Labor hack as well. The Deputy Leader of the Opposition appears to have gone quiet.

Wilson Tuckey (O'Connor, Liberal Party) Share this | Link to this | Hansard source

Mr Speaker, on a point of order: I refer you to page 48 of Practice and, more particularly, to the 1976 report of the Royal Commission on Australian Government Administration and the statement therein that the responsibility of ministers individually to parliament is not a mere fiction. Would the minister consequently tell the House the different dates when the mining industry crashed and the rest did?

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! That is not a point of order.

Chris Bowen (Prospect, Australian Labor Party, Minister for Financial Services, Superannuation and Corporate Law) Share this | Link to this | Hansard source

I referred to the various indexes, but this analysis is also borne out if you look at individual share prices. Let us take, for example, for the sake of argument, BHP. Since 30 April, BHP has fallen by 7.24 per cent. In other words, BHP has outperformed the market in the past three weeks. Perhaps that is why so many analysts are recommending a buy on BHP—advice that at least one opposition frontbencher has taken to heart.

Opposition Members:

Opposition members interjecting—

Chris Bowen (Prospect, Australian Labor Party, Minister for Financial Services, Superannuation and Corporate Law) Share this | Link to this | Hansard source

Our old friend the member for Dickson. He has been out there giving hypocrites a bad name again.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The minister will withdraw.

Chris Bowen (Prospect, Australian Labor Party, Minister for Financial Services, Superannuation and Corporate Law) Share this | Link to this | Hansard source

I withdraw. The Leader of the Opposition says that you can only believe something he says if it is in writing. Perhaps you can only believe something the opposition say if it is written in the pecuniary interest return to the House of Representatives, because what they say is worth less than what they do. If I tried to desert my seat I would probably try to make investments to improve my retirement income as well. But we actually care more about the retirement incomes of all Australians. If the opposition want to be taken seriously, they should stop crying crocodile tears about the price of mining shares and should support our efforts to improve the retirement incomes of all Australians, to give all Australians a secure and dignified retirement.

Judi Moylan (Pearce, Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer the Prime Minister to 778,000 self-funded retirees who depend on the returns from their superannuation. Did the government do any analysis on how the new tax on mining would affect investments of self-funded retirees and its impact on their standard of living and, if so, will the Prime Minister release that analysis?

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I thank the member for Pearce for her question. It goes to the impact of the proposed RSPT on the superannuation earnings of Australians. The first thing I would say in response to the honourable member’s question is that the way in which you boost the superannuation earnings of Australians is to increase the SGL from nine per cent to 12 per cent. That is the first thing you do because superannuation adequacy for working families is, frankly, not sufficient.

Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

Mr Speaker, I rise on a point of order on relevancy. The question was about modelling and analysis, not the Prime Minister’s reinterpretation of the question.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The member for North Sydney will resume his seat. I will listen carefully to the response from the Prime Minister. He knows the requirement for his response to be relevant. The Prime Minister has the call.

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

Thank you very much, Mr Speaker. My recollection of the question from the member for Pearce is that it went to the impact of the government’s proposed tax on superannuation and, furthermore, it went to a range of other matters as well, including those analyses taken into account by the Treasury.

Honourable Members:

Honourable members interjecting—

Mrs Bronwyn Bishop (Mackellar, Liberal Party, Shadow Minister for Seniors) Share this | Link to this | Hansard source

I rise on a point of order on relevancy, Mr Speaker. I refer you to page 553 of House of Representatives Practice, which says that for an answer to be relevant it has to be—

Honourable Members:

Honourable members interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The member for Mackellar will be heard in silence.

Mrs Bronwyn Bishop (Mackellar, Liberal Party, Shadow Minister for Seniors) Share this | Link to this | Hansard source

Thank you, Mr Speaker. On page 553 the second paragraph says that a basic requirement for an answer to be relevant is that the answer maintains a link to the substance of the question. The substance of the question was the plight of self-funded retirees who have already retired, making no further contribution, and therefore to be relevant it must address that point.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The member for Mackellar will resume her seat. The member for Mackellar has made a point of order. As I said in response to the previous point of order, I will listen carefully to the Prime Minister’s response. The Prime Minister has the call.

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

Thank you very much, Mr Speaker. The member for Pearce’s question went to superannuation and to self-funded retirees. The first point that I was making—and I repeat it even though it seems to irritate those opposite—is that we are increasing the SGL, superannuation guarantee level, for all working Australians, from nine per cent to 12 per cent.

Judi Moylan (Pearce, Liberal Party) Share this | Link to this | Hansard source

I rise on a point of order, Mr Speaker, on relevance. My question was quite specific about whether the government had conducted an analysis to determine the impact of its new tax on mining on self-funded retirees, and whether the Prime Minister would release such an analysis. I know that there are many people in the electorate of Pearce who have been affected directly—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The member for Pearce will resume her seat. The fuller explanation, which is necessary for my critics outside, is: I have asked her to resume her seat because a point of order is not an opportunity for her to debate a case. The question has now been repeated on several occasions. The Prime Minister is only a fraction of time into the answer. The Prime Minister has the call.

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

Furthermore, in the Treasury’s analysis of the impact on the economy, that is what underpins what is returned to the superannuation industry through investments over time for both the mining industry and the general economy. If you look at the Econtech modelling contained in the Treasury report, it projects ahead a 0.7 per cent increase in economic growth over time.

Joe Hockey (North Sydney, Liberal Party, Shadow Treasurer) Share this | Link to this | Hansard source

Give us the inputs.

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order, the member for North Sydney!

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

Secondly—and I say this for the honourable member—it also projects ahead a 5.5 per cent increase in overall mining activity. It follows as a consequence that the overall impact of these reforms on the broad economy will lead to greater growth in general, and for the mining sector in particular and therefore for superannuation funds invested in those sectors into the future.

Furthermore, I draw the honourable member’s attention to the response just given by the Minister for Finance and Deregulation. The minister for finance in particular emphasised the recent performance of resource stocks as against non-resource stocks within this country and abroad. The member for Pearce, as she said, reflecting on the concerns of her constituents should have listened carefully to what the minister for finance said. He said that the changes over the last month in resource stocks have been less, by and large, than those in the financial services sector.

Christopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | Link to this | Hansard source

Mr Pyne interjecting

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

If you want examples, BHP Billiton is down nine per cent, CBA down 12 per cent, NAB down 15 per cent, WBC down 18 per cent, ANZ down 13 per cent—

Opposition Members:

Opposition members interjecting—

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order, those on my left!

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I know that these are uncomfortable facts for the political argument being advanced by those opposite.

Christopher Pyne (Sturt, Liberal Party, Shadow Minister for Education, Apprenticeships and Training) Share this | Link to this | Hansard source

Mr Pyne interjecting

Harry Jenkins (Speaker) Share this | Link to this | Hansard source

Order! The member for Sturt is warned!

Kevin Rudd (Griffith, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

When those opposite—and, as we know, they are such a crack economic team made up of the Leader of the Opposition, the member for North Sydney and the member for Goldstein, aided and abetted from time to time by Senator Barnaby Joyce—actually look at what is happening in the global economy and the performance of all stock markets at present, they will see that it is directly impacted by events in Greece and in Europe. That is why we have seen such massive changes in stock market indices across most Western economies in recent times, including those within our own region.

Therefore, in response to the honourable member’s question, we are proud of the fact that we are using the proceeds from the RSPT to increase the retirement income of working families. The impact on the overall economy and on mining in particular is assessed by the Treasury analysis as being positive and therefore the earnings of the industry will be so underpinned into the future.