Tony Abbott (Warringah, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

My question is to the Prime Minister. I refer her to the fact that on the first stage of the Olympic Dam expansion the carbon tax will cost BHP Billiton tens of millions of dollars and to the statement from its chairman, Jac Nasser, who said:

… uncertainty about Australia's tax system is generating negative investor reaction.

I ask the Prime Minister: if BHP Billiton delays its massive expansion of Olympic Dam, will she accept responsibility for the uncertainty and extra cost her carbon tax has created?

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

We believe that the Olympic Dam project is a very important project for the future of South Australia, which is why every step of the way we have worked strongly with BHP, the proponents of Olympic Dam, in order to see this project realised for South Australia. Of course, BHP has to go through all of its internal processes and decision making, as is proper, but the government has worked consistently with BHP and will continue to do so.

The Leader of the Opposition refers to a statement from Mr Jac Nasser about uncertainty in tax policy. The source of that uncertainty is the Leader of the Opposition. The tax policies and plans of this government are clear and are there for all to see. We have legislated the minerals resource rent tax. There is no uncertainty: every mining company in Australia is well aware of the rules. We have legislated carbon pricing. There is no uncertainty: every mining company, indeed every business that has to pay a carbon price—a very limited number of them, well under 1,000—is well aware of the rules. We have set up a business tax working group. You could not take a more consultative approach to the future of business taxation.

We on this side of the House wanted to deliver a 1 per cent reduction in the company tax but ran into the destructive negativity of the Leader of the Opposition, who has prevented businesses around Australia, whether BHP or any other, from realising that 1 per cent tax cut. The Leader of the Opposition actually plans a company tax increase for businesses like BHP. So, on this side of the parliament there is responsible economic policy, a budget coming to surplus, certainty for the business community and a consultative approach about the future; on that side of the parliament, yes, there is risk—you betcha!

Tony Abbott (Warringah, Liberal Party, Leader of the Opposition) Share this | Link to this | Hansard source

My supplementary question is to the Prime Minister. Has the carbon tax made the Olympic Dam expansion more or less likely?

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

BHP will make its investment decisions, as is proper. We have legislated carbon pricing so BHP, when it is making those decisions, can do it against a backdrop of certainty. Yes, amongst some sections of the business community, carbon pricing has been controversial, but overwhelmingly the thing that the business community has said to the government about carbon pricing is that it knew that, inevitably, a carbon price was coming. It had diagnosed that from the fact that both major political parties went to the 2007 election promising a carbon price. It had diagnosed that from the fact that—

Mr Simpkins interjecting—

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

The member for Cowan is warned!

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

it was the policy of the government and that it was a policy supported by every living Liberal leader. The business community diagnosed that it was inevitable that there would be a carbon price. So, knowing that there would be a carbon price, its call was for certainty. We have given certainty. The Leader of the Opposition might want to turn his back on the facts and he might want to turn his back on reason, but in fact the uncertainty for BHP and Olympic Dam, the uncertainty for every business in this country, comes from the destructive negativity of the Leader of the Opposition and his reckless attempt to roll back every economic reform that makes sense for this country and that will build our prosperity—including the carbon tax. (Time expired)