Russell Broadbent (McMillan, Liberal Party) Share this | Link to this | Hansard source

My question is to the Prime Minister. I remind the Prime Minister that the owners of Hazelwood Power Station have been forced to pump $652 million into the plant to keep it solvent because of the risks posed by the carbon tax. Given that the government modelling predicts the carbon tax will lead to a 71 per cent reduction in coal fired power generation, is the Prime Minister prepared for more bailouts like the one planned for Alcoa because of the carbon tax?

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

In answer to the member's question, No. 1: the assistance provided to Alcoa as described in the parliament yesterday arises because of the particular circumstances of the aluminium industry in Australia at this time. Those circumstances were described by Alan Kranzberg, the managing director of this company, and I am sure the member is not meaning to imply that Alan Kranzberg, as manager, was saying anything other than the truth. I am sure he is not meaning to imply that. Mr Kranzberg made it perfectly clear that the circumstances of Alcoa were being determined by the falls we have seen in aluminium prices globally and by things like the high Australian dollar. He has specifically said—and I alerted the House to these statements yesterday—that the matter which he faced was not a matter about carbon pricing but a set of circumstances generally in the aluminium industry. I believe his words should be accepted by this parliament. They are absolutely the facts.

Second, on the question of Hazelwood, I alert the member to the fact that Hazelwood did announce a refinancing arrangement. This refinancing arrangement has been done through normal commercial arrangements. The suggestions have been in the media that somehow this is an emergency or there is some sense of bailout around it—and I believe the member may have repeated those words. This is a normal commercial arrangement and normal commercial refinancing which should actually speak to this parliament and speak more broadly about the way in which our electricity generation sector will have security as we move into carbon pricing. So the fear campaigning around this, like all of the other fear campaigning—the fear campaigning around jobs, the fear campaigning around cost of living, the fear campaigning around the circumstances of cats and dogs—by the Leader of the Opposition is absolutely untrue.

On 1 July, when the coal industry is still in operation, when electricity generation is still happening around the country, when people get their tax cuts and are spending their increased family payments and pensions, when people go to the shops and do not see the Leader of the Opposition's promised astronomical increase in the cost of living and when Whyalla is still on the map, the Leader of the Opposition's campaign will be exposed for the hollow sham it has been.

Mike Symon (Deakin, 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, how well have forecasts of the outlook for Australian businesses under carbon pricing performed? Why is it important that we look at the facts on this issue?

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 Deakin for his question. There is very strong investment in the Australian economy in full knowledge of the carbon price starting on 1 July, despite all of the efforts by the Leader of the Opposition to talk down the economy. The prophet of doom has been turning up at businesses around the country for months, predicting their demise under carbon pricing. We all know, of course, that when the Leader of the Opposition visited a Peabody coalmine and forecast the death of the coal industry—its death!—the very next day the company announced a $5 billion takeover. Some death!

I have had a look at a few other places that the Leader of the Opposition has visited, and there is quite an intriguing pattern emerging: it appears that, if the Leader of the Opposition visits your business and predicts doom, in fact you might boom. Have a look at some of the results. Last year, for example, he visited BHP Billiton's Mount Whaleback iron ore mine and said, of course, 'The carbon price—the end of the iron ore industry; terrible outlook'. But what actually happened after he left? BHP Billiton then announced it would invest $822 million in further expanding the ore body nearby—$822 million after the prophet of doom had been there.

Then the Leader of the Opposition went to Austal's Henderson shipyard and said it would be terrible: 'This is going to be significantly, terribly impacted by the carbon price.' What happened after he left? Since he left Austal has announced $400 million of new contracts for its facility at Henderson—$400 million in new business. He went on to Visy's Gibson Island recycling mill and said that it was going to be a victim of carbon price and the end of the mill. Yet since he left Visy has announced a $300 million waste-to-energy proposal, including a new plant at Gibson Island. This is what Anthony Pratt, Visy's Executive Chairman, had to say:

I see clean energy as a source of future growth, energy and emissions savings and a whole new business division for Visy.

That was said by Anthony Pratt, the head of Visy, after the Leader of the Opposition had been there forecasting doom. We all know he has forecast the death of the coal industry, but $100 billion of extra investment is coming in. All we can hope is that, after his silly visit to the RSPCA today, it will forecast a better outcome for the little puppies and the little kittens in good care at the RSPCA.

Mike Symon (Deakin, Australian Labor Party) Share this | Link to this | Hansard source

Thank you, Madam Deputy Speaker, I ask a supplementary question. Minister, you have spoken about the investments being made with the full knowledge of the carbon price, are there any other examples?

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 Deakin, again. The member for McMillan, I am sure in very good faith, raised an issue earlier about the Latrobe Valley, and the Leader of the Opposition has visited the Latrobe Valley as well and forecast doom and gloom, death and destruction and the end of the Latrobe Valley. He has forecast the end of the entire region. But, today, just days before the carbon price is to commence, when you look through all the rubbish in the headlines at what has actually taken place, there has been $1.6 billion of refinancing in brown coal electricity generation in the Latrobe Valley. He forecast the death of the Latrobe Valley and there is $1.6 billion in refinancing.

Mr Chester interjecting—

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

Order! The member for Gippsland is warned.

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

International Power and GDF Suez, the operators of Hazelwood and Loy Yang B, say, 'We are pleased to announce the refinancing of our debt facilities.' The new debt facility was well supported, particularly by the Australian and Asia-Pacific markets. So that is it: the death of the Latrobe Valley, but $1.6 billion in financing just days before the carbon price starts. AGL has invested in Loy Yang A power station and every one of these announcements is a statement of confidence in the economic future of that region.

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

My question is to the Treasurer. I refer the Treasurer to his answer to my question last week when he said that there was 'not a lot of truth' to the Victorian Automobile Chamber of Commerce's bulletin that found that air-conditioning gas would increase by $30 per kilogram due to the carbon tax. Given that the government's own carbon tax calculator on www.environment.gov.au calculates that the carbon tax on air-conditioning gas will increase the price of the gas by $30 per kilogram, does the Treasurer stand by his answer? (Time expired)

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

I thank the member for his question because it is yet another example of all the exaggeration that we have seen from those opposite and all of the tall stories. I do not really take much at all of what those opposite say because it is generally misleading and it is inaccurate.

Mr Robb interjecting—

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

The member for Goldstein is warned.

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

All of these matters will be tested by the ACCC and we will see where the truth lies. But I do take the words that have been uttered by the member, and this is what he had to say on 13 February 2007:

… the Government's role should be to create the market environment that will lead to the outcomes sought either through putting a price on CO2 or placing a cap on how much CO2 will be emitted …

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

For the benefit of the Treasurer, Madam Deputy Speaker, I seek leave to table this printout of the carbon tax calculator.

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

The member for Aston will resume his seat. Is leave granted to table the document?

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

As I have indicated to the opposition consistently, Madam Deputy Speaker, if they wish for something to be tabled, they should consult with the government beforehand, then we will give it full consideration.

Mr Tudge interjecting—

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

The member for Aston will resume his seat. The Leader of the House has the call.

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

They cannot be trusted to table what they say they have got.

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

I am assuming that was 'no', leave is not granted.

Ms Julie Bishop (Curtin, Liberal Party, Deputy Leader of the Opposition) Share this | Link to this | Hansard source

Madam Deputy Speaker, is the Leader of Government Business seriously suggesting that we should tell him, in advance of question time, what documents we want to table?

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

The Deputy Leader of the Opposition will resume her seat.

Ms Julie Bishop interjecting—

The Deputy Leader of the Opposition will resume her seat.