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

My question is to the Prime Minister. I remind her of the job losses of iconic Australian businesses, OneSteel, Qantas and now BlueScope. Why is she making a bad situation worse by introducing a carbon tax at the worst possible time? Isn't the best rescue package for the whole economy just to dump this toxic tax?

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

On the Leader of the Opposition's question, like so many questions before, first and foremost, I think we should be very, very clear that the announcement by BlueScope today, which would be received as very, very difficult news for the workforce of BlueScope, with 1,000 jobs to go, 800 in the Illawarra and 200 in Hastings, that that very tough news for those families is not related to the government's policy of putting a price on carbon. I refer the House to the statement that BlueScope Steel made to the Australian Stock Exchange where it said:

The economic conditions for export steel-making from Australia appear unlikely to become favourable in the foreseeable future, and our continued exposure to this marker is clearly unsustainable. Our decision is a direct response to the economic factors affecting our business and is not related to the Federal Government's proposed carbon tax.

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

Mr Speaker, on a point of order, I asked why she is making a bad situation worse, and she should be directly—

Honourable members interjecting—

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

Order! The Leader of the Opposition will resume his place. I am now forced to invite the Leader of the Opposition to rise on his point of order and put it again. I could not hear because of the pre-emptive interruptions.

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

Thank you, Mr Speaker. On direct relevance, I was simply pointing out that I asked the Prime Minister why she is making a bad situation worse.

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

Mr Speaker, on the point of order, respectfully and in accordance with the standing orders, I would suggest that the Leader of the Opposition has now had his supplementary question.

Honourable members interjecting—

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

Order! There is no point of order. Again, not wishing to mark people's homework, in the repeated fashion the Leader of the Opposition actually put to me a point of order in proper order, even though I cannot agree with him because he did not give his preamble which widens the scope for the answer. I think that if everybody just listened to one another, it would assist. The Prime Minister has the call.

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

Thank you very much, Mr Speaker. I go to some trouble to make that point about BlueScope Steel because, as I understand it, some of these things are already being misrepresented and I believe that it is quite wrong to misrepresent to around 1,000 working people and their families the reason that their jobs are under threat. I want to be absolutely clear before this parliament, and I think that every member of this parliament has got an obligation to be absolutely clear with individuals in the community, that this is not a decision related to the government's plans to put a price on carbon.

On the government's plan to put a price on carbon, I would remind the Leader of the Opposition that both the government and the opposition are committed to a minus-five per cent reduction in carbon pollution by 2020. The question therefore presents that if you are going to reduce carbon pollution by five per cent by 2020, do you start soon and do it in the easiest possible way or do you start late with dramatic dislocation to the economy? Well, I am for starting soon. The Leader of the Opposition is for starting late, with dramatic dislocation. I do not believe that the Leader of the Opposition's plan would be good for Australian industries and businesses because of that dramatic dislocation.

Number 2, the question that presents is: do you do it in the most efficient and cheapest possible way, or do you do it in the most costly and cumbersome way? I am for doing it in the cheapest possible way. The Leader of the Opposition is for doing it in the most costly and cumbersome way. And of course in assessing that putting a price on carbon is the cheapest possible way to do it, we have relied on the advice of economists. I know that that is discounted by members opposite, but I would refer them, for example, if they are looking for sources of economic advice, to the words of the IMF where they have said:

We support the proposed introduction of a carbon price as part of a transition to a permits trading system to mitigate greenhouse gas emissions.

They went on to say in a facts sheet:

Broad based taxes on greenhouse gas emissions are the most natural policy instrument as they exploit all possible behavioural responses for reducing emissions throughout the economy …

The shared minus five per cent target: we want to do it in the most efficient way. We want to do it in the way that is therefore best for Australian industries, businesses and employment. It is the Leader of the Opposition that is committed to a scheme of dislocation and job losses.

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

Mr Speaker, I have a supplementary question. Does the Prime Minister agree with the BlueScope chairman's February statement that carbon tax compensation is like 'putting a bandaid on a bullet wound'?

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

I think perhaps the Leader of the Opposition should use contemporaneous statements, particularly the ones made by BlueScope and its CEO at the time that the carbon pricing package was announced.

Mr Pyne interjecting—

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

Order! The Prime Minister has the call, the member for Sturt doesn't!

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

I am talking about his words at the time the carbon pricing package was announced. Perhaps the Leader of the Opposition should look at that those words and that might cause him to reflect on the course that he is committed to of tying Australian industry and businesses up in red tape, of dramatic industrial dislocation, of job losses and, of course, of a $1,300 extra tax on families.