Rick Wilson (O'Connor, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Industry. Will the minister update the House on how delivering the repeal of the carbon and mining taxes has benefited industry and the Australian economy?

Ian Macfarlane (Groom, Liberal Party, Minister for Industry and Science) Share this | Link to this | Hansard source

I thank the member for O'Connor not only for the question but for the great work he does in his community and in helping the businesses and the miners in the electorate of O'Connor.

He understands, like everyone on this side of the House, the confidence that has been restored to those sectors following the repeal of the mining and carbon taxes. It is just two months since the government abolished the mining tax, freeing up the resources sector, creating jobs and confidence, and helping to combat the downward pressure that is on commodity prices. Labor's original proposal was said to raise $49 billion over five years. Of course, we know that is not true. In fact, we know that was a wild exaggeration and that it only raised a fraction of that amount. We just had to get rid of it because of the effect that it was having on the mining industry with respect to confidence and, by getting rid of it, we have saved the budget almost $50 billion over the next 10 years.

On the back of that repeal, it is interesting to see what the Association of Mining and Exploration Companies said:

… the repeal of the mining tax will go a long way to restoring Australia’s international competitiveness and increasing investment to stimulate the sector …

Of course, we didn't just repeal the mining tax and restore confidence; we also repealed the carbon tax, which has gone a long way in helping businesses not only survive and compete but create new jobs. Again, can I quote from a business in the member for O'Connor's electorate, Fletcher International WA, the largest export abattoir based in Albany. It said: 'It was weight in our saddlebags'—that is, the carbon tax—'that we certainly didn't need. We are one of the last meat industry manufacturers in Australia and the extra cost from the tax was an impost borne against us.' Even the city of Kalgoorlie welcomed the ridding of the carbon tax.

What that shows is that at the end of almost a full year of our being in office and when we reach the end of 2014 not only will we have achieved two of our key pledges but that we are taking the pressure off industry and creating confidence, which will allow industry to do the one thing that is critically important if you have a strong economy and that is to create jobs. Because if you do not impose the taxes that the Labor Party always imposes on business, then you are going to create jobs in the electorate of O'Connor and right around Australia. And it is about creating jobs, which this coalition is determined to do by removing Labor's bad taxes.