Daryl Melham (Banks, Australian Labor Party) Share this | Link to this | Hansard source

My question is to the Treasurer. Will the Treasurer outline how the government's reforms are building a stronger economy and securing growth and jobs into the future?

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

I thank the member for Banks for that question. Before I directly answer that question, I would like to report to the House that the Reserve Bank has now decided to keep the cash rate steady at three per cent. This means that a home owner, say, with an average mortgage of around $300,000, remains around $5,000 better off per year compared to when this government came to office. The RBA has cut rates repeatedly over the last 15 months partly in response to global volatility but also because the government has been running a very strong fiscal policy that has kept inflation contained and given the Reserve Bank of Australia flexibility and room to cut rates. I was asked by the member for Banks about why we must put in place reforms to strengthen our economy—to strengthen our economy for our children and our grandchildren, because reform can be pretty tough; it can be hard yards.

Bob Katter (Kennedy, Independent) Share this | Link to this | Hansard source

Madam Speaker, I rise on a point of order. Could the Reserve Bank be told that their interest rates are 1,000 per cent higher than the rest of the world?

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

The member for Kennedy will resume his seat. It is not a point of order. It is an abuse of the standing orders, and I will warn the member for Kennedy if he interjects again. The Treasurer has the call.

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

This government is very clearly focused on reforms which will strengthen our economy and our country for the future. We are proud of the fact that we have faced up to the big reforms over the past five years—big reforms like the NBN to lift productivity and to support business; big reforms like carbon pricing to make sure that a First World economy is driven by clean energy. It is this same determination to look to the future that this government is putting in place in 2013 for the next five years, in particular our determination to support jobs and growth. It is the top priority of this government, and it has been since day 1. It is why we moved to support our economy during the global financial crisis. It is one of the reasons that our economy is now 13 per cent bigger than it was back in 2007. Our priority has been jobs and growth and the peace of mind of the Australian community.

At the end of last year we took a very big whack to revenues—$4 billion, a revenue write-down over four months that we had previously written down for the whole year. That is why we said then that our first priority does remain with supporting jobs and growth, and that is what we will continue to do. When we support growth and when we have a strong economy, we have a strong budget and we have the capacity to put in place the very big reforms for the future which will lift productivity—particularly the school improvement program, the Gonski program and, of course, making a fairer Australia through the National Disability Insurance Scheme. There can be no doubt about our determination to strengthen our economy and our country for the future.

Sophie Mirabella (Indi, Liberal Party, Shadow Minister for Innovation, Industry and Science) Share this | Link to this | Hansard source

My question is to the Prime Minister. I remind the Prime Minister that 60 jobs were axed last month at Penrice Soda, with the company telling the ASX that the losses were due to increasing energy and labour costs, increasing taxes—notably the carbon tax—and increasing regulatory compliance costs. Will the Prime Minister apologise to the families of the 60 workers sacked at Penrice Soda for breaking her promise not to introduce a carbon tax?

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

Of course when any worker loses their job around the country that is a very disturbing matter for them and their family. It puts a lot of pressure on. From the point of view of this government, all you will ever see us do is support working people who find themselves in that position. Indeed, we know how shattering it can be for someone to confront the circumstance of unemployment, and that is why we took the actions we did in the global financial crisis to keep Australians working and to keep them in jobs.

On the question of Penrice and the production of soda ash that the member asked about, I think it is important that we are accurate about what was putting pressure on this company, accurate about the impacts and also accurate about carbon pricing. So let us go through the facts, which I believe the members opposite ought to be interested in. The facts are these. Soda ash sells for around $340 per tonne. That is a fact. After assistance, the impact of the carbon price on a tonne of soda ash is around $1.20 a tonne. That is the fact. The impact of carbon pricing on soda ash production is similar to a 0.3c appreciation in the Australian dollar. As we all know, we have seen a 60 per cent appreciation in our currency over the last few years. So the pressures on this business are strongly impacted by the strength of the Australian dollar. It is also impacted by factors like lower international shipping costs, which are making imports more competitive.

Sophie Mirabella (Indi, Liberal Party, Shadow Minister for Innovation, Industry and Science) Share this | Link to this | Hansard source

Madam Speaker, I am just a bit confused—

Government members: What's your point of order?

My point of order is—

Government members interjecting—

It is a very serious—

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

The member for Indi has the call. I am struggling, though, to see how the Prime Minister's answer is not relevant.

Sophie Mirabella (Indi, Liberal Party, Shadow Minister for Innovation, Industry and Science) Share this | Link to this | Hansard source

The Prime Minister seems to be impugning the honesty of the company in their press release.

Ms Anna Burke (Speaker) Share this | Link to this | Hansard source

The member for Indi will resume her seat. She is again abusing a point of order, and it will not be tolerated. I will actually direct people to the Manager of Opposition Business's recent speech about abiding by the standing orders. The Prime Minister has the call.

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

Thank you very much, Speaker. That was a clear example of the continued negativity of the opposition. I was bringing to the parliament the facts, and I think the facts matter, and no amount of headshaking by the member for Indi changes that. So, when we are talking about this business, there were clear pressures. I have given you the figures about the impact of carbon pricing compared with the impact of the Australian dollar. Obviously the impact of carbon pricing is very, very, very, very modest indeed. So this is an example of the kind of change we are seeing across our manufacturing sector, driven overwhelmingly by the high Australian dollar. That is why we will respond to those real pressures with a statement on jobs and innovation and why we will always resist the opposition's plans to cut back assistance to manufacturing. (Time expired)

Sophie Mirabella (Indi, Liberal Party, Shadow Minister for Innovation, Industry and Science) Share this | Link to this | Hansard source

I seek leave to table a document, the ASX release by Penrice Soda.

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

Yes. I like the member for Indi.

Leave granted.