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

My question is to the Treasurer, the member for Lilley. If as the Prime Minister claimed yesterday the loss of thousands of manufacturing jobs has nothing to do with the carbon tax, why is the Prime Minister funding the government's steel industry compensation from the carbon tax compensation fund?

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

First of all, we are funding it from the steel transformation scheme, so let us get the facts right. We have been in discussions with the steel industry for some time about the structural changes that are occurring in the Australian economy. For the member to suggest that somehow this is all directly linked to carbon pricing is just a continuation of the scare campaign that those opposite have been running on carbon pricing. The fact is we are potentially funding some assistance to BlueScope from the steel transformation scheme—a scheme, I might add, that the Leader of the Opposition says he is opposing. He does not believe in the steel transformation scheme. It is true that we announced it at the time that we announced carbon pricing and it is certainly part of the government's response to a range of structural issues in our economy.

Putting carbon pricing in place is a fundamental structural reform. It is one of the structural reforms that we as a country require to become much more energy efficient and to make sure that we can get the investment in renewable energy and more efficient energy practices. It is true that for industries like steel this is very important as well. The CEO of BlueScope has made that point—I heard him on the radio this morning making that point. In that sense, both are connected. The steel transformation scheme is connected to a future for the steel industry which is more energy efficient. But I want to repeat what the chairman and the chief executive of BlueScope have said today and yesterday.

Andrew Robb (Goldstein, Liberal Party, Chairman of the Coalition Policy Development Committee) Share this | Link to this | Hansard source

Mr Speaker, a point of order on relevance: the Treasurer has not answered the question. In fact, the steel plan is in the government's Clean Energy Future scheme. It is carbon tax, so why are you—

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

The member for Goldstein will resume his seat. He is permitted to make a point of order; he is not permitted to make a debating point. The Treasurer is replying.

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

It is a fact that the steel transformation scheme was announced at the same time. There is no doubt about that. I acknowledge that, so I do not know what sort of 'gotcha' moment we are trying to have here. I think they have just completely lost it and gone gaga.

The fact is that this is a very important scheme that we have put in place, and those opposite should be listening to what the chief executive and chairman of BlueScope are saying. Their decision to cease exporting into those export markets had absolutely nothing to do with carbon pricing and everything to do with the high value of the dollar, which is putting enormous structural pressure on the steel industry. It has a lot more to do with the excess capacity in the steel industry, a lot more to do with very high input prices and a lot more to do with weakened demand for their products. Those were the four factors that were highlighted by the chairman and the chief executive. The two are linked in the sense that having an efficient industry in the future is critical.

As we go forward, all industries in this economy are going to have to become much more energy efficient. They are going to have to be able to invest in renewable energy and more efficient energy practices, and that is why the two were announced at the same time. All that these questions prove is that those opposite simply have not got a clue about how we put in place the policy settings for a modern economy to drive both investment and jobs for the future.