Gai Brodtmann (Canberra, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Industry and Innovation and Minister for Climate Change and Energy Efficiency. Will the minister inform the House of recent investment decisions made by resource companies in the full knowledge of the carbon price coming in. Why is it important that policy to tackle climate change is driven by facts, not fear?

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 Canberra for her question. The government is introducing a price on carbon because it is the most cost effective way of cutting our greenhouse gas emissions. And it will provide the long-term incentives for businesses to shift to low emissions technology and to bring more renewable energy into our grid.

If we do not make these changes we are in danger of being left behind. This was a point being made by the chief executive officer of Shell, Mr Peter Voser, who has welcomed the government's carbon price package. The opposition leader's dark forecasts of doom and gloom have not stopped Shell from committing to invest $30 billion in Australia over the next five years.

It is reported in the Sydney Morning Herald today that Mr Voser has confirmed that countries not acting to reduce emissions will fall behind. Far from being terrified by the forecasts of doom and gloom of the opposition leader—the reports also indicate something that has been known widely—Shell already uses a carbon price in their investment decisions. Apparently it is in the order of $40 a tonne. That is the basis upon which they are making investment commitments of $30 billion in the Australian economy over the next five years, notwithstanding all the investment advice from the Leader of the Opposition. Of course, the fact is that major resource companies have been pricing carbon into their investment decisions for quite a period of time. Those same resource companies are investing in Australia in the full knowledge of the government's clean energy package and the carbon price, starting on 1 July.

The Treasurer mentioned a moment ago in question time that Rio Tinto has just announced it is investing another approximately $4 billion in its Pilbara iron ore projects. This commitment represents a huge investment and it stands in complete contrast to the Leader of the Opposition's statements about the outlook for industries like iron ore. When he was visiting the Pilbara last year he talked about doom and gloom and said:

This carbon tax poses an increasing threat to so many of Australia’s great industrial areas and very important sectors of our economy.

That is the sort of thing he is saying, but what is going on in the real world? Multibillion-dollar investments; we are seeing massive new investments. Twiggy Forrest and Gina Rinehart do not listen to his investment advice. Rio Tinto is not listening to his investment advice. Shell is not listening to his investment advice, and neither are the backbench. They are still snapping up resources stocks, because they are good investments. It is all doom from him, but the real world has moved on from there. (Time expired)

Alan Tudge (Aston, Liberal Party) Share this | Link to this | Hansard source

My question is to the Acting Prime Minister. I refer the Acting Prime Minister to a bulletin from the Victorian Automobile Chamber of Commerce titled 'Carbon tax to hit aircon gas'. It finds that because of the carbon tax the price of air-conditioning gas will increase by $30 per kilogram, from $22 to $52 per kilogram. Does the Acting Prime Minister expect this massive increase to be passed on to consumers or to be absorbed by businesses?

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

First of all, I make the point that those sorts of claims and pricing decisions will be subject to scrutiny from the ACCC. That is my first point, and secondly, if the claims that the member has made are anything like the claims that have been made by those opposite then the fact is that they will not have a lot of truth about them. The fact is that there will be an impact on the price level overall, 0.7 per cent on average, less than 1c in the dollar. It is true the increases in electricity prices will be bigger than that. We have said they will be around 10 per cent, and that is precisely what the modelling has found.

We said that what we would do would be to put in place assistance for households to deal with the price increases and also assistance for industry. We are providing something like $15 billion of household assistance over four years. That is $15 billion worth of assistance into the pockets of consumers. In addition to that, particularly for small business, we have starting on 1 July the $6,500 instant asset write-off which will support up to—

Alan Tudge (Aston, Liberal Party) Share this | Link to this | Hansard source

I rise on point of order on relevance, Madam Deputy Speaker. It was a very simple question: does he expect the increase to be passed on to consumers or for businesses to absorb it?

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

Order! The member for Aston will resume his seat. The Acting Prime Minister has the call.

Opposition members interjecting—

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

Probably because he thinks it will disappear on 1 July. There will be a fair bit of assistance for small business and a very big assistance package which will put cash into the pockets of consumers. As for the claims made by the member, they will be examined by the ACCC.

Alan Tudge (Aston, Liberal Party) Share this | Link to this | Hansard source

I seek leave to table this bulletin, 'Carbon tax to hit aircon gas'.

Leave not granted.