Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

My question is also to the Treasurer. Does the Treasurer agree with Dr David Gruen, Executive Director of the Macroeconomic Group of the Treasury Department—his own department—that a carbon price of $50 a tonne by 2016 is conceivable? What would be the impact on electricity prices of a carbon tax of $50 a tonne?

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

I thank the member for his very important question. We see carbon pricing as one of those essential investments in capacity which is going to grow this country in the Asian century. It is going to drive massive investment in renewable energy in this country, which is precisely what is required. For any country to be a first-rate First World economy in the 21st century, you have got to put in place carbon pricing, particularly to drive investment in renewable energy. And that is exactly what is going on: right across the region massive investments have been made in renewable energy. That is so important for the future of our country. This carbon pricing scheme that we have put in place is absolutely essential—as essential as investments in education and training and skills. It will drive innovation—

Warren Truss (Wide Bay, National Party, Leader of the Nationals) Share this | Link to this | Hansard source

Madam Speaker, on a point of order: the question I asked was about the impact of a $50 a tonne carbon price as predicted by the Treasurer's own department.

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

I would refer the member to all of the details that are contained in all of our published documents. The carbon price will be $23 in 2012-13, $24.00 in 2013-14 and $25 in 2014-15, and the current projection is that it will be $29 when it floats.