Tony Abbott (Warringah, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer the Prime Minister to Mr Paul Kelly, who runs drilling rigs in north-west Queensland. As a result of the great big new tax on mining, two of his three drilling rigs are now idle, current contracts have been halved, two new projects worth up to $250,000 have disappeared and four workers are about to be laid off. My question to the Prime Minister is: why won’t he visit Cloncurry to explain to Mr Kelly that there is no problem really, that he does not have anything to worry about and that, in fact, the great big new tax on mining will be good for jobs and investment—or does he think that Mr Kelly is just part of a scare campaign conspiracy too?

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

I thank the Leader of the Opposition for his question. I am unaware of the circumstances surrounding Mr Kelly’s business, but we will now investigate the circumstances surrounding his business. I would also say in response to the Leader of the Opposition that, if he consulted the documents attached with the Treasury’s tax reform package released on 2 May, he would see that they go to the future modelling impact on the mining industry as a whole: first of all, the increase in overall investment in the mining industry by between 4.5 and 5.5 per cent; and, secondly, the overall increase in employment in the mining industry by seven per cent. I therefore am always reluctant to simply take anything which is said across the dispatch box by those opposite, particularly given the question asked just before by the member for Sydney—which went so well!—without actually further testing the facts.

I also note that, if the question asked was about developments in the state of Queensland, I should raise our good friend Mr Clive Palmer again as well. Remember, on the question of impact on projects, Clive, the patron saint of the Liberal-National Party—at least the funder-in-chief of the Liberal-National Party—

Martin Ferguson (Batman, Australian Labor Party, Minister for Resources and Energy) Share this | Link to this | Hansard source

And campaign director.

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

and campaign director of the Liberal-National Party—told South Australians he was cancelling projects in their state. We have been at work on this now for about two or three weeks. We cannot find those projects. Nobody can find those projects. Frankly, we are of the view that those projects may never have existed. So, when it comes to scare campaigns about individual projects, we are more than interested in separating fact from fear from fiction, which is important in this debate.

What we do know is that actions always speak louder than words on this matter of the negative impact of the government’s tax reform proposal for the mining industry on the interests of the economy at large and investors et cetera. Best proof positive still lies in that critical investment decision by the member for Dickson, because I am told his BHP shares are still out there doing—

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

Mr Speaker, I raise a point of order on relevance. The Prime Minister has talked about Mr Palmer, he has talked about—

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

Order! The Manager of Opposition Business will resume his seat.

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

He has talked about every other—

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

The Manager of Opposition Business will resume his seat.

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

The Manager of Opposition Business will resume his seat.

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

Before dealing with the Manager of Opposition Business for his outburst when he was on a warning, he raised the point of order and it was on relevance. There is no need for him to then debate the point of order, because I would indicate to the Prime Minister that he should relate his material to the question. But, because of his outburst, first of all, the member for Sturt will withdraw the remark.

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

I withdraw.

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

No, he will go to the dispatch box and withdraw.

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

I withdraw, Mr Speaker.

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

Now he will withdraw himself from the chamber. The member will withdraw under standing order 94(a).

The member for Sturt then left the chamber.

The Prime Minister will relate his material to the question.

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

Therefore, on the impact of the government’s proposed tax reform, what we are on about is, firstly, how you grow the economy over time and, hence, the impact of the government’s tax reform proposals, by bringing down the company tax rate, by bringing down taxes also in small business and by boosting the economy, including in the regions on which the honourable member’s question was focused.

Ian Macfarlane (Groom, Liberal Party, Shadow Minister for Infrastructure and Water) Share this | Link to this | Hansard source

Mr Speaker, I raise a point of order on relevance. This was a question about Paul Kelly, a real person, who the Leader of the Opposition—

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

Order! The member for Groom will resume his seat. On the question of relevance, I have advised the Prime Minister that he should relate his material to the question.

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

The question goes to impacts arising from the government’s tax proposal on employment in regions of Australia where companies are located. What I am seeking to do is respond by saying: the impact of the government’s tax reform plan, first of all, goes to the company tax rate, which we are bringing down by two percentage points—and the Leader of the Opposition is actually increasing by two percentage points. Secondly, for the small businesses in Cloncurry, they would all obtain a tax break in terms of $5,000 worth of assets purchased in a given year. On top of that again—

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

The Prime Minister will resume his seat. The—

Graham Perrett (Moreton, Australian Labor Party) Share this | Link to this | Hansard source

Mr Perrett interjecting

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

The member for Moreton, even though he displays self-restraint, should be very careful. The Leader of the Opposition on a point of order.

Tony Abbott (Warringah, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

Mr Speaker, my question was about Mr Kelly, and I am prepared to provide Mr Kelly’s phone number to the Prime Minister. If he doubts what I say, he can ring him up himself and ask him.

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

The Leader of the Opposition will resume his seat. The Prime Minister is responding to the question.

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

The employment impact in regions of north-west Queensland would be the aggregate effect of what we are doing in terms of (1) the tax systems applied to the mining industry, both for the exploration and for the extraction side of the industry, (2) the tax reform for other businesses operating in the industry or outside the industry, which is a two percentage point reduction in the company tax rate and (3) all the small businesses in Cloncurry to which he refers, who will benefit if they are incorporated by the two percentage point reduction in the company tax and also, significantly, in terms of the $5,000 asset tax break as well.

Taking these things together, the overall impact nationwide is a positive impact on employment in the economy and a positive impact on employment within the mining industry by 7.7 per cent. But the critical thing which I think the House would like to know is the impact of this tax overall. I am advised just now by others, by the way, that Australian mining stocks are now performing better relative to those in Canada. I would just ask people to consider that as a mere matter of fact which the member for North Sydney is not engaged in. Critically, in terms of the member for Dickson, the BHP share price is up 1.5 per cent over the last week. Onya, Pete! You have done the right thing. You have voted your confidence in the government’s overall tax reform in an investment you made two days after the government announced its tax plans. Well done, Member for Dickson.

Peter Dutton (Dickson, Liberal Party, Shadow Minister for Health and Ageing) Share this | Link to this | Hansard source

Mr Dutton interjecting

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

The member for Dickson will withdraw.

Peter Dutton (Dickson, Liberal Party, Shadow Minister for Health and Ageing) Share this | Link to this | Hansard source

Withdraw that he is a fraud? I withdraw, Mr Speaker.

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

The member for Dickson will withdraw without reservation.

Peter Dutton (Dickson, Liberal Party, Shadow Minister for Health and Ageing) Share this | Link to this | Hansard source

I withdraw.