Stephen Jones (Throsby, 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. Minister, with the carbon price due to start in six days time, what are the future investment prospects for the coal industry, particularly in the Illawarra region, and how does this demonstrate that resource companies' investment decisions are being guided 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 Throsby for his question, because the coal industry is extremely important to regions that he represents in the Illawarra and also to the region that I represent in the Hunter. There has been a range of forecasts about the future of the coal industry in recent months, all of them overwhelmingly positive, but there is one that has been incredibly negative, and that is from the Leader of the Opposition. We know about his economic forecasting! He has predicted from 1 July, next Sunday, the death of the coal industry. The death of the coal industry—the end of it. In the Illawarra, coalmining has gone; in the Hunter, it has gone. That is what he has predicted. But the closer we get to the introduction of a carbon price from Sunday and the more facts that come out, the more utterly ridiculous, hypocritical and misleading the Leader of the Opposition's comments have been.

Just take the Illawarra: last Friday, BHP Billiton approved an $833 million investment in Illawarra coal. The carbon price starts in less than a week, the Leader of the Opposition has forecast the death of the industry, and here is BHP Billiton announcing an $833 billion investment commitment. In fact, it is the largest capital investment that BHP Billiton has ever made in its Illawarra coal subsidiary. The new mine will support the ongoing employment of 500 workers currently employed at the West Cliff mine and generate 300 new construction jobs. With my background I have some familiarity with the industry. The coal seams in the Illawarra are relatively methane intensive and will attract a carbon price liability. Nonetheless, notwithstanding the forecasts of doom, $833 million has been committed in Illawarra coal, just days before the introduction of the carbon price.

On the one hand, we have got the death of the industry being forecast by the Leader of the Opposition, who will be held to account for this by workers in the coal industry—they will hold him to account for what he has predicted and the insecurity that he has engendered—but on the other hand, we have got BHP Billiton and $833 million on the table. Just as the Leader of the Opposition was misrepresenting the position with Alcoa earlier in question time, so he has misrepresented systematically the circumstances in the coal industry. In fact, there has been an upward revision from $96 billion to $107 billion in the investment pipeline in coal and it has a strong future.

Stephen Jones (Throsby, Australian Labor Party) Share this | Link to this | Hansard source

I have a supplementary question, Minister, you have spoken about the impact of the carbon price on the $833 million investment by BHP in my region. Will you inform the House of what assistance families in my electorate, and other electorates around mine, will have as part of the carbon price?

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 Throsby for the question because the fact of the matter is that the carbon price will have only a modest impact on the cost of living—that is, 0.7 per cent increase in the CPI—less than one cent in the dollar.

The government is assisting pensioners, it is assisting families eligible for tax benefits, it is assisting many self-funded retirees and it is assisting many veterans and others in receipt of Commonwealth payments. In the Illawarra region, more than 20,000 families have already received extra cash in their bank accounts over the past month. More than 53,000 Illawarra pensioners have received $250, if they are single, or $380 for couples combined—that is 53,000 pensioners who have received an advance payment already. And 4,300 students have received up to $190. That is very important in the Illawarra with the University of Wollongong and the many students there. But over on that side, the Leader of the Opposition has opposed all of those things. He has opposed it all and he continues to go out into the community and claim that these are not permanent increases and that they are not indexed. It is completely misleading. It is a complete untruth. It is totally wrong. Regular payments are going to be increased, they will be indexed in the future, and a lot of the assistance is being delivered by tax cuts. (Time expired)

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

Further to that answer, I seek leave to table a report that identifies that the carbon and mining taxes reduce BHP's earnings by three to four per cent per annum and net present value by three per cent per annum—

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

The member for North Sydney will resume his seat. Is leave granted to table the report?

Anthony Albanese (Grayndler, Australian Labor Party, Leader of the House) Share this | Link to this | Hansard source

To again quote the Leader of the Opposition: no!

Bert Van Manen (Forde, Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. I remind the Prime Minister that Teys Australia in my electorate, which employs 800 workers, plans to shut down its Beenleigh abattoir for several weeks to avoid going over the 25,000 tonne carbon tax threshold. How will these workers and their families be supported by the government while the factory shuts down to avoid her carbon tax?

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

To the member who raises the question: if the member wants to directly discuss the issue, then of course I am open to discussing with him issues in his electorate. I am making the assumption he is genuinely raising the issue in the parliament and wants to discuss it with the government.

Can I say to the member and to the parliament more broadly: with carbon pricing, we have seen in this parliament many, many claims made which, on investigation, do not turn out to be true. Indeed, in the course of this question time, from the Leader of the Opposition and from the shadow Treasurer, we have seen a continuation of the kinds of misrepresentations which have characterised this debate. The opposition has been so negative that it has predicted a permanent depression. It has been so negative that it has predicted the death of the coal industry. It has been so negative that it has said that this will be a wrecking ball through the economy, that the increases in the price—

Bert Van Manen (Forde, Liberal Party) Share this | Link to this | Hansard source

Madam Deputy Speaker, I rise on a point of order on relevance. I have asked about the abattoir in Beenleigh, not about the coal industry. It is about the effect of the carbon tax.

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

I ask the Prime Minister to return the question before the chair.

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

My simple point is that we have, particularly from the opposition's frontbench, time after time, misleading claims made about carbon pricing. For the member who raises this question I will make the assumption he is raising it genuinely and I am more than happy to speak to him directly about it.

John Murphy (Reid, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Minister for Families, Community Services and Indigenous Affairs and Minister for Disability Reform. Minister, will you update the House on how the government is helping families and pensioners with everyday expenses? Are there any challenges to delivering this support?

Jenny Macklin (Jagajaga, Australian Labor Party, Minister for Disability Reform) Share this | Link to this | Hansard source

I thank the member for Reid very much for his question. I can inform the House that this government is continuing to act to help families and pensioners with their everyday expenses. As of today, more than 6½ million initial payments have been made before the price on pollution starts on 1 July, so 6½ million families and pensioners have already received their assistance. This is going to help with their expenses like their groceries or their electricity bills that are coming both now and in coming months.

I can also let the House know that from today more than 280,000 self-funded retirees who are on a Commonwealth seniors health card will be receiving $250 if they are single self-funded retirees or $380 for couples combined. The one thing that they certainly are not looking forward to is this opposition clawing that money back off them if this lot ever gets the chance. I can also inform the House that the government's household assistance package is designed to support around 98 per cent of families with incomes up to $150,000. Those families will be receiving some assistance. More than half of those families will in fact get a 20 per cent buffer to make sure that they do get the assistance they need with the introduction of the carbon price.

One thing that Australians are very good at is judging whether or not what they hear is true. What they are going to know after 1 July is that the doom and gloom that this Leader of the Opposition has been spreading is patently untrue. They will be able to judge the truth for themselves. Already we are receiving correspondence from pensioners who are saying to us how pleased they are that the money is certainly going to assist them with their winter power bills. As the Minister for Climate Change and Energy Efficiency mentioned a minute ago, pensioners do understand that the assistance they are receiving is permanent, that it is ongoing. But, of course, it is only permanent and ongoing if the government stays in power, not if people over there get the chance because we know that this Leader of the Opposition is only plotting to figure out how he is going to claw this money back. (Time expired)

John Murphy (Reid, Australian Labor Party) Share this | Link to this | Hansard source

I have a supplementary question to the minister on the help the government is giving to pensioners and families for everyday expenses: what does this mean for my electorate of Reid and others in Western Sydney?

Jenny Macklin (Jagajaga, Australian Labor Party, Minister for Disability Reform) Share this | Link to this | Hansard source

I thank the member for Reid for his question and particularly for all the work that he does for the pensioners in his electorate. I can let him know that 18,700 pensioners in the electorate of Reid have already received their initial payment. In the neighbouring electorate of Parramatta, more than 22,000 pensioners have received a payment. Even in Bennelong another 18,000 pensioners have received this money. I hope the member for Bennelong is telling each and every one of those 18,000 pensioners that he will be clawing that money back off them if he ever gets the chance.

Starting today in Reid more than 2,000 self-funded retirees on a Commonwealth seniors health card will receive a helping hand. I reiterate to the member for Reid and to everybody on this side of the House that pensioners and self-funded retirees on a Commonwealth seniors health card can be assured that this money is ongoing. Of course, the falsehoods peddled by those opposite are exactly that. We know that the Liberals are all about helping themselves. Barry O'Farrell is there in Reid, in Parramatta, in Bennelong making sure that those pensioners that are in public housing pay increased public housing rents. His whole idea is to line his own pockets just like all of those opposite. (Time expired)