Jane Prentice (Ryan, Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer the Prime Minister to the statement by President Obama in January 2008 that under a cap and trade system 'electricity rates would necessarily skyrocket.' Prime Minister, isn't that the reason why the United States has rejected a carbon price and will instead pursue a policy of direct action? Does the Prime Minister agree with President Obama?

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

I thank the member for Ryan for her question. My recollection is that I have been asked it before in this parliament, with that reference to President Obama's words. But let me say to the member for Ryan, who may be recycling a question from the past, that the answer to her question is as follows. In making sure that the biggest polluters, who currently put carbon pollution into our atmosphere for nothing, pay a price so that we reduce carbon pollution and do not see that carbon pollution increasing endlessly because there is no incentive to reduce it, which is the situation now—in putting a price on carbon pollution—what we have then done is, through Treasury modelling, to model the effects. I know that modelling has been frequently misrepresented by the opposition, but the modelling that the member for Ryan may want to direct her attention to shows what the flowthrough cost of living impact will be for Australian families, including the impact on electricity pricing. You model all of that impact, as the experts at Treasury have. These are the same experts who advised the coalition, when they were in office, about things like the goods and services tax and got the modelling right.

Those same experts have advised that the flow-through impact for families will be 0.7 per cent as an increase to CPI—that is, it will be less than a cent in a dollar. Understanding that, what the government has done is ensure that we direct money from big polluters to working families. They will see that through the tripling of the tax-free threshold. That means that working Australians, some of whom are in the tax system now, will no longer pay tax. It also means that those working Australians—

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

Mr Speaker, on a point of order: the Prime Minister was asked if she agreed with President Obama that under a cap-and-trade system electricity rates would necessarily skyrocket. She has to say either no or yes to that.

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

The member for Sturt will resume his seat. On the final bit that should not have been added, I cannot dictate the manner in which the question is responded to. The Prime Minister is aware of the obligation under standing orders to be directly relevant to the question. I invite her to continue with her answer and relate her material in a directly relevant way to the question.

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

I was asked about electricity prices and carbon pricing and I am ensuring that in providing that answer I am giving the facts for Australian working families. I understand that the question is asked as part of a fear campaign and a campaign of saying no. But I have got sufficient respect for Australian working families that when I answer a question like this I will go through the facts. I think they are entitled to the facts.

The facts are the biggest polluters will pay. The facts are the implication for families is a 0.7 per cent increase in the CPI—less than a cent in a dollar. The facts are that there will be tens of thousands of Australians, hundreds of thousands of Australians, who pay tax now who no longer will. The facts are that people who earn less than $80,000 a year will see tax cuts, many of them tax cuts of $300 a year. The facts are that people will see increases in their family payments. The facts are that people will see increases in their pensions. These are the facts. No amount of misrepresentation, no amount of shouting no, no amount of fear campaigning, no amount of any of this from the opposition changes those facts.

To the member for Ryan: if she wants to get correct information to people in her community it is available to them. She should not go around misleading them about the impact on electricity prices. The facts are available and she should be distributing those facts to her constituents.

Mr Pyne interjecting—

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

Order! The member for Sturt is warned. Today's homework is for people to read standing order 104(b):

A point of order regarding relevance may be taken only once in respect of each answer.