Ed Husic (Chifley, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Climate Change and Energy Efficiency and Minister for Industry and Innovation. What have recent price determinations across Australia shown about the projected impact of the carbon price on electricity prices? How does this reality compare with the commentary on electricity prices over the last year, and what is the government doing to assist households with it?

Greg Combet (Charlton, Australian Labor Party, Minister for Climate Change and Energy Efficiency) Share this | Link to this | Hansard source

I thank the member for Chifley for his question. When the government announced its Clean Energy Future package last July, we released comprehensive modelling by Treasury on the impacts of carbon pricing. That modelling showed very clearly that the carbon price would add about 10 per cent to electricity prices, which is around $3.30 a week per household on average—and, of course, the government is delivering assistance to the extent of an average of $10.10 per household per week.

Price regulators in different jurisdictions are now confirming Treasury's modelling and showing a lesser impact in some states and territories than the modelling suggested. For example: in New South Wales, IPART, the independent price regulator, has issued a draft determination with a carbon price impact on the average household in New South Wales of $3.27 per week; Western Australia's regulator has found an impact around $2.45 week; in the Northern Territory it is around $2.48 a week; in Tasmania is around $3 a week. All these figures are under the Treasury-modelled cost impact.

The government's household assistance package will provide, as I indicated, an average of $10.10 per week per household. It will do this through permanent tax cuts—by trebling the tax-free threshold, which also releases one million taxpayers from having to file a tax return. It will also deliver it through permanent increases in the pension and through payments to many self-funded retirees. It will also deliver it through permanent increases in family tax benefits and many other Commonwealth payments. This is contrary to much of the commentary that we have heard from the Leader of the Opposition.

These are the facts: electricity prices are bang-on or a bit less than the Treasury modelling as the regulators bring in their determinations and the government is providing comprehensive assistance to households—it will reach nine out of 10 households—yet for the last 12 months the Leader of the Opposition has run around making false claims designed to engender fear that the carbon price will increase electricity prices by 20 per cent, 25 per cent or 30 per cent. That is specifically what he has claimed—just last week, the Leader of the Opposition went on a hysterical rant claiming that the carbon price will certainly force up electricity prices by 20 per cent. But, now that the facts are coming in, what they will show is that the Leader of the Opposition is nothing but a shallow political con man.

Ed Husic (Chifley, Australian Labor Party) Share this | Link to this | Hansard source

Madam Deputy Speaker, I ask a supplementary question. The minister in his response made reference to household assistance. What would that mean for local communities in my area and others across Western Sydney?

Greg Combet (Charlton, Australian Labor Party, Minister for Climate Change and Energy Efficiency) Share this | Link to this | Hansard source

I thank the member for Chifley once again. He represents the area where I grew up—Rooty Hill—and I am very proud, having grown up in Western Sydney, that the government is providing very strong assistance to households in Western Sydney.

In the seat of Chifley 58,000 taxpayers will receive a tax cut, 19,000 families will receive an increase in payments—that is, family tax benefit payments—and 24,400 pensioners will receive an increase in the pension. In the seat of Parramatta, in Western Sydney, 55,000 taxpayers will receive a tax cut, 43,300 families will receive family tax benefit increases and 22,100 pensioners will receive an increase in the pension. In the seat of Greenway, in Western Sydney, 55,000 taxpayers will get a tax cut, 13,500 families will receive an increase in family tax benefits and 17,000 pensioners will receive a pension increase.

These are the facts: this is a Labor government, and we are introducing an extremely important environmental and economic reform in a socially equitable, socially fair manner that looks after the people of Western Sydney, and we are proud to do it.

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

My question is to the Minister for Climate Change and Energy Efficiency. How does the minister reconcile his statement in a press release that job losses at Kurri Kurri are 'unrelated to the carbon price' with the company's statement issued today which says 'long-term viability will be negatively affected by a number of factors including the carbon tax'? Will the minister please stop misleading this House and explain that contradiction?

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

The Leader of the Opposition will resume his seat. The last part of his question was out of order.

Greg Combet (Charlton, Australian Labor Party, Minister for Climate Change and Energy Efficiency) Share this | Link to this | Hansard source

Thank you very much, Madam Deputy Speaker, because that was very selective quoting indeed by the Leader of the Opposition—something we have become completely accustomed to. As has been made clear by Hydro Aluminium over a considerable period of time, there are a number of factors that are influencing this decision and the financial losses that they are incurring—essentially, the effects of growth in global supply in aluminium, the strong value of the Australian dollar over a period of time, the ongoing effects of the global financial crisis, and in fact nothing less than a 40 per cent depreciation—

Mr Baldwin interjecting—

in the price of aluminium on the London Metals Exchange. I have met the company—it is in my region—discussed these issues and discussed the pressures on the company. I spoke to a company representative again today in relation to this issue who emphasised to me that the announcement today is not driven by the implications of the carbon price; it is driven by the current pressures leading to the current financial losses that the company is incurring. You should not misrepresent this.

Mr Baldwin interjecting—

The member for Paterson, before question time, took glee in the pressure that these workers and their families are experiencing. You should be ashamed—you should be ashamed of the position that you articulated, and the Leader of the Opposition should represent the facts.

Bob Baldwin (Paterson, Liberal Party, Shadow Minister for Tourism) Share this | Link to this | Hansard source

You wouldn't know fact if it bit you on the backside!

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

The member for Paterson will leave the chamber under 94(a).

The member for Paterson then left the chamber

The minister has the call and will return to the question before the chair.

Greg Combet (Charlton, Australian Labor Party, Minister for Climate Change and Energy Efficiency) Share this | Link to this | Hansard source

I have concluded my answer; thank you.

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

Mr Speaker, I seek leave—

A government member: It's Madam Deputy Speaker.

to table the statement of the company stating that the viability of this business has been impacted by the carbon tax.

Ms Anna Burke (Chisholm, Deputy-Speaker) Share this | Link to this | Hansard source

Leave is not granted. I am not precious about what everybody calls me. It is a very difficult situation, so please do not correct someone if they get my title wrong, especially in the middle of question time. I think it is more appropriate we get on with question time.