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

My question is to the Treasurer. Does the Treasurer agree with the Minister for Resources and Energy that stopping Australian coal exports will lead to other countries using lower quality, dirtier coal that does more damage to the environment?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I can certainly tell the shadow Treasurer that all of us on this side of the House are in favour of exporting coal. It seems like a common-sense thing to do. One of the reasons we need to put a price on carbon is to ensure that all of our industries, including our coal industry, can get access to international markets and also be competitive in international markets. That is the objective of everybody on the side of the House, but those opposite want to stick their heads in the sand because they are not capable of facing up to the really big decisions that we must make as a nation to ensure we remain competitive.

The coal industry is one of our most important industries. We on this side of the House are strong supporters of the coal industry. We understand that the coal industry, like so many of our other industries, must be competitive. That is why we need a price on carbon. As the rest of the world prices carbon and we do not, our industries and exports could face trade barriers. Of course, the one that would be most under threat from that would be the coal industry. I am optimistic about the future of our coal industry because we have some of the cleanest coal in the world. As the world moves to renewable energy it will still require traditional energy and our coal will be highly valued in that environment. In an environment where carbon is priced and where investment is driven to renewable energy there will still be a role for coal and a very big role for the Australian coal industry.

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

I have a supplementary question, Mr Speaker. Given that the Treasurer is such an enthusiastic supporter of coal exports, why is the Labor government imposing a carbon tax that will shut 16 Australian coal mines and cost 10,000 Australians their jobs but deliver no net benefit for the environment?

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I really do thank the shadow Treasurer for that question because it just demonstrates how he has changed his spots when it comes to climate change. There was a time in this House when he said he was an avid supporter of climate change and that we needed a price on carbon, and he strongly supported the member for Wentworth in that endeavour. But I remember the day when he really lost the plot. It was when the leadership struggle was on in that party and he sent a message out on Twitter saying, 'Tell me what I believe in.'

Mr Hockey interjecting—

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

The member for North Sydney will withdraw.

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

I withdraw. I also rise on a point of order about relevance. I ask you to bring him back to answer the question.

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

The member for North Sydney has raised with me the point of order on direct relevance. The Treasurer should respond directly to the question.

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

The sad truth is that the shadow Treasurer stands for nothing and believes in very little. Someone who could change their stance so radically—

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

Order! The Treasurer will come to the question.

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

Mr Speaker, you made a ruling to the Treasurer to ask him to be relevant to the question and then he instantly ignored your ruling in the next breath. I ask you what action you are going to take.

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

As the member for Sturt rose to the dispatch box, he may or may not have heard that I asked the Treasurer to come back to the question. He will respond to the question directly.

Wayne Swan (Lilley, Australian Labor Party, Treasurer) Share this | Link to this | Hansard source

I was asked about the impact of a carbon price on our coal industry, which is so important to the generation of jobs and wealth for our country. The underlying factor is this: the industry understands there needs to be a price on carbon and that is why they are continuing to invest. And for the shadow Treasurer to ask me this question today, when the capital investment, the CAPEX figures, have come out and they are truly strong and very encouraging for the future of our economy, and when we have just today got the report from ABARE talking about how the pipeline of investment in coal and iron ore is growing—it just demonstrates that he has not got a clue what is going on in our economy. The fact is that the industry understands that carbon is going to be priced and they are continuing to invest. We have an unprecedented investment boom in our nation. But of course that is not understood by anybody on the other side of the House, because all they want to do is score cheap political points and run incredibly stupid scare campaigns.