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

My question is to the Prime Minister. I refer the Prime Minister to a letter from New South Wales Premier Barry O'Farrell raising concerns that the imposition of a carbon tax will destroy $5 billion in the value of New South Wales power generation assets and cause the loss of 13,000 jobs and $1.2 billion in economic activity in the Hunter region. How will the government compensate the people of the Hunter when they lose their jobs and all of New South Wales when power supplies are placed at risk? To show that there can be no misrepresentation I seek leave to table the letter from Premier Barry O'Farrell.

Leave not granted.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I say to the member for Paterson's that once again if you deal with the facts and do not peddle falsehoods then things become clear. Let me just go through the facts.

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

Mr Speaker, I rise on a point of order concerning relevance. I offered to give the facts in the letter, which she already has, and she refused to have it tabled.

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

Leave has been refused and I will not be putting that question to the House again. The House will come to order. The Prime Minister has the call.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I say to the member for Paterson that I assume he probably does want to tell his constituents the truth. Let us go through each assertion he has put and actually get to the truth.

Opposition members interjecting—

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

The member for Sturt has been warned.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

Number one: on the question of energy generation and the impact of carbon pricing, let me refer him to a report released last month by the Minister for Resources and Energy. It is a report by Deloittes and I think he would find it interesting reading. The report's modelling shows that delaying the introduction of a carbon price will cost Australian electricity users between $1 billion and $2 billion annually, rising to as much as $5 billion a year by 2025. That report is telling you that uncertainty about carbon pricing is causing difficulties with investment in energy generation, and we need to end that uncertainty. As the member knows, being a member in New South Wales, his constituents have seen increases in electricity prices.

Opposition members interjecting—

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

The member for Herbert is warned.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

They have seen increases in electricity prices and that of course is not about a carbon price. There is no carbon price in operation now, so he cannot possibly be saying to his constituents that the current increases in their electricity bills relate to that. As he well knows, the current increases in their electricity bills relate to underinvestment in distribution networks. That underinvestment needs to be made up for. That is putting price pressure on electricity now and the last thing we should do is add to the uncertainty and add to underinvestment with all of the problems that that would spell for long-term power pricing, as outlined by Deloittes.

Let me go to the member for Paterson's claim about 13,000 job losses and let us try looking at the truth about that. He is referring to a study by Frontier Economics, which is from a few years ago and relates to the Carbon Pollution Reduction Scheme. What he should perhaps tell his constituents is that the Frontier modelling is showing that employment would still grow in the Hunter. That is the truth. More jobs in the Hunter. Then, he may want to tell his constituents the truth about the investments that this government is making in the Hunter to enable it to transition to a clean-energy future. For example, Newcastle is home to the Australian Solar Institute—a $150 million commitment as part of our clean energy initiatives. Is the member opposed to investment in solar energy and the Hunter?

Mr Baldwin interjecting—

No he is not, he says. Then, that is co-located with the CSIRO Energy Centre in Newcastle. Is he opposed to that clean energy future?

Mr Baldwin interjecting—

No, he is not. Then we committed $30 million to the Newcastle Institute for Energy and Resources. Is he opposed to that?

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

It is a lie anyway.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

He is not sure about that one. And it stands alongside our $100 million Smart Grid, Smart City investment. Is he opposed to that?

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

If only you managed it properly.

Julia Gillard (Lalor, Australian Labor Party, Prime Minister) Share this | Link to this | Hansard source

I thank the member for Paterson for his support for our clean energy investments in his area. They are showing how a clean energy future can be built.