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

My question is to the Treasurer. I refer him to his statement yesterday that he had not reduced his mining tax revenue estimates by $3 billion because the New South Wales government 'haven't told us what they're going to do'. I refer the Treasurer to this year's New South Wales budget papers which show the increase in state royalties. I refer the Treasurer to this press release from the Premier of New South Wales confirming the royalty increase. I further refer the Treasurer to the front page of the Daily Telegraph today saying New South Wales will be penalised for increasing royalties—seen by a million people. Treasurer, when will you come clean with the Australian people and explain where the missing $3 billion on the mining tax is coming from?

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

They never fail to surprise. They have been around Australia saying that mining companies pay too much tax and that the federal government should not put in place a resource rent tax. They said that, because of our resource rent tax, mining would stop, investment would stop and jobs would be lost. That was the story they were telling the whole time until, suddenly, out of the blue, the Western Australian government increased mining royalties. Did they oppose that? No. They thought: 'That's a good idea. It's not going to stop investment. It's not going to stop jobs.' And of course they continued, after the Western Australian government did that, to go around the country—

Mr Hockey interjecting—

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

Order! The member for North Sydney will resume his seat. The Treasurer, having had his introduction, will now relate his material in a directly relevant manner to the question.

A government member: He is building a case.

I appreciate he may, in his mind, be building a case. I want him to get to the case.

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

I was asked about royalties. The fact is that the review into taxation found that royalties were a very inefficient tax and that what Australia should do is put in place a resource rent tax to encourage the industry to expand and to encourage investment. They found that the application of royalties was particularly bad for those miners—

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

Mr Speaker, I rise on a point of order going to relevance. I would ask you to ask the Treasurer to answer the question: where is the $3 billion coming from—another tax, another levy?

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

The member for North Sydney will resume his seat. He does well with his point of order and then spoils it by debating. I remind him and I remind the Treasurer that the standing order now says that an answer must be directly relevant. On some occasions I have observed that, under relevance, we might get away with certain responses. There is a higher bar set to direct relevance. I again urge the Treasurer to make sure that his material relates in a directly relevant manner to the question. The Treasurer has the call and he will be heard in silence.

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

The New South Wales government has not specified fully the nature of their royalty regime. They have not done that as yet. For example, they said that it would not be paid by those who are paying the MRRT. That was one of the qualifications they put on it. We have not seen the detail from New South Wales about their inefficient royalty regime. It is a bit rich coming from the shadow Treasurer who has a $70 billion crater in his budget bottom line. He is asking me where $3 billion from New South Wales is coming from, when they have not said so themselves.

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

I seek leave to table the New South Wales budget papers which prove the Treasurer just got the answer factually wrong—

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

Leave is not granted. Order! The member for North Sydney will resume his seat. The member for Bass will resume his seat. And now the member for North Sydney will come to the dispatch box and withdraw.

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

I withdraw.

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

I thank the member for North Sydney. The member for Bass now has the call.