Gai Brodtmann (Canberra, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer outline for the House the importance of undertaking the big economic reforms, including putting a price on carbon for our nation's future. How has this approach been received and what is the government's response?

Mr Dutton interjecting—

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

The member for Dickson is warned!

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

I thank the member for Canberra for her very important question because, as I outlined to the House yesterday, the global economy does face some substantial challenges and, thankfully, our economy is one of the strongest in the developed world. You can see this in the pipeline of investment in resources—the $430 billion that has been outlined by ABARES. Of course, we have a debt position which is the envy of the developed world. We have low unemployment. When the global financial crisis hit, our unemploy­ment rate was the same level as the United States. Now theirs is twice ours, with unemployment here at 4.9 per cent. Today we have seen the Labor force figures, which show unemployment again at 4.9 per cent. Something like 23,000 jobs have been created in the past month of June, with strong growth in full employment—something which is celebrated and supported by everybody on this side of the House. Of course, this adds to the 750,000 jobs that have been created and the 222,000 jobs created in the past year. One of the reasons why employment is so strong in this country is that this government got the big economic decisions right. We acted at the height of the global financial crisis and the global recession to support our economy. But that is not the only reason why our economy is strong compared to other developed economies. We have also over a 25-year period put in place the really big economic reforms, and that adds to our economic strength compared to the economic strength, or lack thereof, of so many other developed economies.

You would have to ask the question: where would Australia be now if we had not put in place a great reform like compulsory superannuation, which was opposed by those on that side of the House? Where would we be if the government of the day then had caved in to the fear campaign that was being run against that great reform?

Opposition Members:

Opposition members interjecting—

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

The member for Higgins is warned!

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

Where would Australia be today if past governments did not have the guts to bring down the tariff wall and to float the dollar? Where would Australia be today? What these instances demonstrate is the importance of fundamental reform for the future because, if we face up to the chall­enges of reform, we will be doing the right thing by future generations. Those that are opposing fundamental reforms are in fact supporting lower living standards for future generations.

Government members: Shame!

Shame on them. We in this country have a strong economy because governments over 25 years have been prepared to take the tough decisions, to look to the long term, to look to those policies which will drive prosperity, but unfortunately those on that side of the House do not have that courage. In 25 years time there will be people looking back and saying, 'Why were they debating and contesting the science of climate change in the parliament 25 years back? Why were there sceptics then who did not believe in the importance of pricing carbon, did not believe in the science of climate change?' We on this side of the House understand the science and we understand the economics of climate change and we understand its importance for our future prosperity. The fear campaigns we are seeing now we have seen in the past, and those that run those fear campaigns will be reflected on very poorly in the pages of history.

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

My question is to the Treasurer. At 2:15 yesterday in this House, you said:

We are putting a price on carbon pollution, to be paid by up to 1,000 of our largest polluters.

Treasurer, when did you find out that it is just 500?

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

For once I have been quoted accurately by the shadow Treasurer because I said 'up to'.

Opposition Members:

Opposition members interjecting—

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

The Treasurer will resume his seat. I simply say to those who argue that they think this is an important part of the day that we can sit here in silence and not give the opportunity for questions to be asked. It would absolutely assist if people could contain themselves simply for a short period of time. The Treasurer has the call, and he should be heard in silence.

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

Thank you, Mr Speaker. The government makes no apology whatsoever for not putting a carbon price on fuel used by passenger vehicles or light commercial vehicles. But, listening to the questions from those opposite, you somehow get the impression that they now favour a carbon price on fuel used by passenger vehicles and light commercial vehicles. That is the only logical consequence you can gain from what is being said by those opposite. Those opposite are just completely embarrassed. The government's policy is very clear.

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

Mr Speaker, a point of order on relevance: the Treasurer was asked only when he found out it applied to only 500 companies.

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

Order! The Treasurer has the call.

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

I thank the shadow Treasurer again for his question. We have been very clear that the largest polluters will be paying a price for their carbon pollution and we will be using the revenue to assist households and to support jobs. The reason those opposite are now so embarrassed is that their policy is actually to tax families and households $720 a year and give the money to the large polluters.

Anthony Albanese (Grayndler, Australian Labor Party, Leader of the House) Share this | Link to this | Hansard source

He's got leave this afternoon. He's got to go early.

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

Order! The Leader of the House is warned.