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. Will the minister update the House on the government's efforts to address dangerous climate change? How has the Australian economy reacted to the introduction of the carbon price, on 1 July? And how does the reality compare with the forecasts?

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. On 1 July the carbon price came into effect. The carbon price is responsive to the climate science. It will cut our carbon pollution and it will drive investment in clean energy. It is already evident that the Leader of the Opposition has run the most mendacious, deceitful campaign in living memory against an important environmental and economic reform. Time will throw further light on the extent of the deceit of the Leader of the Opposition and those opposite in relation to this issue.

As the Treasury modelling demonstrated, the facts are that the economy will grow with a carbon price in place. Jobs will grow, income will grow and the price impact will be less than one cent in a dollar. And, of course, the government instituted a household assistance package that will provide and is providing an average of $10.10 per week in cash assistance. What that will mean is that millions of households will be better off under the carbon price arrangements.

The Leader of the Opposition has made a vast array of deceitful claims. Most notable amongst them is that there would be unimaginable price increases. Wrong. Last week the data started coming in. The TD Securities-Melbourne Institute price index showed that prices had risen by just 0.2 per cent, or one-fifth of one cent, in the month of July.

And it is important to note that that 0.2 per cent increase in consumer prices takes into account all electricity price movements coming into effect from 1 July, including the network costs and other costs. In fact, as the Treasurer pointed out yesterday, underlying inflation is at its lowest point in 13 years. The opposition leader has made other claims—the death of the coal industry: wrong! I have a lot of them in my electorate. Two are currently expanding! And there is $100 billion of investment coming into the coal industry. The Leader of the Opposition claimed there would be no fewer than 45,000 job losses in energy-intensive industries and 126,000 job losses in regional Australia—wrong! During July employment grew by 14,000. He is patently going it alone with carbon pricing.

While the Leader of the Opposition was in China recently, Shanghai province announced their carbon pricing plan, through an emissions trading scheme that will come into effect next year. At every step of this campaign, the Leader of the Opposition has made deceitful claims, and he will be judged very harshly by people for that.

Sussan Ley (Farrer, Liberal Party, Shadow Minister for Childcare and Early Childhood Learning) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer the Prime Minister to the fact that the Silver City Cinema in Broken Hill, in my electorate of Farrer, has reduced the number of screenings from 30 to 15 a week because of a $4,200 increase in its power bill. Does the Prime Minister still believe that the lived experience of the carbon tax will save her from her broken promise that 'there will be no carbon tax under a government I lead'?

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

The Prime Minister has the call. The last part of the question was out of order.

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

I thank the member very much for her question. I am concerned about the 70 per cent price rise in electricity the people of New South Wales have suffered because of, largely, decisions made by the New South Wales government. I am concerned about that. The Leader of the Opposition says that that simply doesn't exist, that the 70 per cent price rises, before 1 July, somehow did not happen. I know that is the position of the Leader of the Opposition but I am surprised that an otherwise intelligent woman would fall for this nonsense. The member knows that she has just quoted a figure that is about electricity price rises from all sources. She knows that the people of New South Wales, and the businesses of New South Wales, have put up with a 70 per cent price increase over the last four years because of actions of the state government largely, because we have problems like dividend gouging, with dividends going to the state government of New South Wales going up by 60 per cent; a continual incentive to invest, and to keep investing, and over-investing, in the poles and wires, so those dividends just keep going up. The member who asked the question knows that. So if she is concerned—

Mrs Bronwyn Bishop (Mackellar, Liberal Party, Shadow Minister for Seniors) Share this | Link to this | Hansard source

Madam Deputy Speaker, I raise a point of order. The Practicedescribes an answer to be relevant as one that maintains 'a link to the substance of the question'. The substance of this question was about the carbon tax—nothing else. Therefore, to be directly relevant to—

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

Order! The member for Mackellar will resume her seat. Up until the last point of her point of order she was actually in accordance with the standing orders. The Prime Minister has the call.

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

The member who has just raised that point of order completely misunderstood the question and is going down the same deceit campaign we have seen in the past. I was just presented with an electricity figure with an increase from all sources, and I am pointing out that one of the big sources of electricity price rises that the business the member identifies is suffering has been caused by the government of New South Wales and has a lot to do with the dividends that are going into Premier O'Farrell's budget. So, if the member is in any way serious with her concern about this business, I suggest she rings her Liberal mate in New South Wales.