Russell Matheson (Macarthur, Liberal Party) Share this | Link to this | Hansard source

There is less than a week to go until the people of Macarthur are hit with the world's biggest carbon tax. I take this opportunity tonight to stand up for the residents, families, seniors and small business owners in my community who will suffer as a result of this tax.

The big question is, why must they suffer when the government's own figures show us that the carbon tax is not going to work. The carbon tax is a $9 billion a year tax which every Australian will pay through their electricity and gas bills. In the first four years, it will total $36 billion. But, despite the carbon tax, Australia's emissions will increase from 578 million tonnes to 621 million tonnes by 2020. Why? Because electricity and gas are essential services and so everyone will pay the carbon tax, not just the major polluters as the government would have us believe.

The major impact of a carbon tax is to raise electricity prices. The government estimates a rise of up to 10 per cent in five years, although the electricity industry is predicting a 20 per cent rise over the next 18 months. In New South Wales, prices are going up 18 per cent, with nine per cent directly attributed to the carbon tax—that is nearly the entire price rise in the first year, instead of the government's five-year projection.

I have pensioners in my electorate who are already struggling with the cost of living. I am visiting homes in the middle of winter where it is freezing cold inside because the elderly are too scared to turn on their heaters. A significant electricity price rise from 1 July is going to hurt families in Macarthur. Most of them are already using electricity responsibly. It does not matter how much it costs them, they are still going to have to turn on the lights, cook the dinner, do the washing, use a computer and of course heat their homes. And let us not forget small business owners—they will have no choice but to take on the burden of these price rises or pass the cost on to their customers and risk losing business.

Earlier this month, the shadow minister for climate action and the environment, Greg Hunt, came to Macarthur for a community forum. We met with many local business owners, including Simon Bradbury, who owns Stockade Pies in Queen Street. 'Simon the Pieman' said he will have to make and sell an extra 8,000 pies per year to cover the cost of a carbon tax on his business. This is a man who represents so many like him in my electorate who are trying to support their families and my community with no help or compensation from this government.

I have recently visited many manufacturers in Macarthur to see how the carbon tax will affect their business. Most of them have said that they will be worse off, and that the carbon tax could not come at a worse time. They are already struggling against the high Australian dollar, and soon they will be paying the carbon tax while their overseas competitors will not have to.

In recent months, I have met with businesses such as Nepean Engineering, the TRN Group, Narellan Town Grocer & Deli, Narellan Planet Health cafe, George's on Queen cafe, Sports Spirit, Funnell's Electrical, and many other local businesses concerned about this tax and the impact it will have on their businesses. Some have even written clauses into their contracts which warn customers of the possible price rises that will be passed on once the carbon tax begins on 1 July. And do not get me started on the $10 billion Clean Energy Finance Corporation that will see the government use taxpayers' money to buy shares in green projects which the private sector will not back—that is an absolute and total joke.

What puzzles me most is that under this Labor-Greens policy, instead of reducing Australia's emissions, firms will have to purchase 94 million tonnes of carbon permits overseas each year by 2020. By 2050, it will equate to 1.5 per cent of GDP. How will this help Australia reduce its own emissions and improve our environment? Not one country currently imposes an economy-wide tax on greenhouse emissions or has in place an economy-wide ETS. The US, Canada, India, China and Japan have all made it clear that they are not moving to a broad based carbon tax model like Australia's. The European Emissions Trading Scheme does not cover the whole economy and provides many industries with free emissions permits.

Europe's scheme raised only about $500 million a year, while Labor's carbon tax will raise more in three months than Europe's has in five years. With a population of just over 500 million, the European scheme raised just over one dollar per person per year. With a population of less than 23 million, Labor's carbon tax will raise almost $400 per person per year.

The government claims that China is acting to reduce its carbon emissions, but China's emissions are forecast to rise by 500 per cent from 1990 levels by 2020. In fact, Garnaut's own climate change papers tell us that between 2005 and 2020, Chinese emissions will increase from around 5 billion tonnes of CO2 per annum to over 12 billion tonnes of CO2 per annum. Then we have Australia with the most expensive carbon tax in the world—it starts at $23 per tonne, but it will keep on going up and up and up. Treasury estimates it will be $29 per tonne in 2016; $37 per tonne in 2020; and more than $350 per tonne in 2050.

Like the people of Macarthur, the coalition believes we need to protect our environment today and for future generations. Our Direct Action Plan delivers on Australia's commitment to a five per cent reduction in emissions by 2020. (Time expired)