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

My question is to the Prime Minister. Why has the Prime Minister set the carbon tax at $23 a tonne when the European carbon price is less than $10 a tonne?

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

To the Leader of the Opposition's question, I say that we made a judgment about the price that was necessary to bring around a transformation in our economy to a clean energy future. It is true to say that the European price has been suppressed of late. I do not think there is any mystery about that, given the economic circumstances in Europe. If you looked at almost any indicator in the European economy you would see that it is depressed, because it is reflecting the economic turbulence that we have seen coming out of the sovereign debt crisis in Greece and more broadly. We determined that $23 a tonne was the appropriate price to get a transformation in our economy to a clean energy future. We obviously took the best possible advice too on the likely future of carbon pricing in Europe.

I would say to the Leader of the Opposition that because we have chosen the most effective mechanism to get change in our economy the price is $23 per tonne. What we know from the work of Treasury is that, under the scheme that the Leader of the Opposition peddles, the effective price is $62 a tonne. We also know that with our $23-a-tonne price there is assistance for trade-exposed businesses, families and pensioners in the form of pension increases, tax cuts and family payment increases. In contrast, the Leader of the Opposition's plan comes with a bill for working families of $1,300 each. If you want to look at the most cost-effective way of transforming our economy so that we seize a clean energy future, it is the carbon pricing package this government brought to this parliament and which will be implemented on 1 July. If you want a wasteful scheme, endorse the Leader of the Opposition's.

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

Mr Speaker, I have a supplementary question to the Prime Minister. Is she aware that the consequences of getting the carbon price wrong, according to a Centre for International Economics report released today, could be an extra hit of $470 a year on Australian families? What is her response to this report?

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

My response is that there is no getting away from the fact that the cheapest and most effective way of transforming our economy for a clean energy future is through a market based mechanism. Every member of the Liberal Party, including the Leader of the Opposition, went to the 2007 election on that pledge. They believed it then and, indeed, many of them believe it now, even though they have followed the Leader of the Opposition down his cheap and populist path.

Peter Slipper (Speaker) Share this | Link to this | Hansard source

The Prime Minister will return to the substance of the supplementary question.

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

On costs and climate change and making sure that we cut carbon pollution, it is amazing me that today, of all days, the Leader of the Opposition would ask questions about this matter, given the CSIRO, through its researcher, has today debunked his climate change policy as absolute nonsense.

Peter Slipper (Speaker) Share this | Link to this | Hansard source

The Prime Minister will return to the substance or will resume her seat.

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

We are determined as a government to pursue the least-cost mechanism for change. The Leader of the Opposition is determined to ask working families to pay $1,300 for his costly, wasteful scheme.

Peter Slipper (Speaker) Share this | Link to this | Hansard source

The Prime Minister will resume her seat.

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

Sat down again!

Peter Slipper (Speaker) Share this | Link to this | Hansard source

Last sitting Thursday, the member for Sturt said it was too long since his last ejection from the chamber. I may well remedy that.