Mark Arbib (NSW, Australian Labor Party) Share this | Hansard source

The incorporated speech read as follows—

I rise today to support the Excise Tariff Amendment (Condensate) Bill 2008 and the Excise Legislation Amendment (Condensate) Bill 2008.

We are currently living in uncertain and deeply worrying times: the snowballing credit crisis in the United States has shook the world economy to the core and no one knows how far this financial crisis will eventually go.

The financial collapse of companies such as—Bear Sterns Lehman brothers, Fannie Mae and Freddie Mac, and AIG the world’s largest Insurance company have added to the growing concerns about the strength of the US economy.

Last weeks $700 billion, US, economic rescue plan by the US Treasury to buy bad debt is an attempt to insulate and stabilise the United States economy from international stock markets.

The total rescue package now comes to around $1.3 trillion dollars.

A staggering amount in anyone’s currency!

There is one thing I agree with the new Opposition Leader, the Member for Wentworth.

As the new opposition leader recently said we are presently facing, the gravest economic crisis globally in any of our life times ...

In light of this turmoil on World markets it is vital that our economy and businesses have some sort of financial certainty from this Parliament.

It’s why the Australian government has taken such strong measures to insulate the Australian economy from the economic tsunami engulfing the world.

But it is not the only challenge-

At the same time as this—we are being forced to fight a war on inflation ...

A legacy left to us by the former Howard Government. The facts which are here for everyone to see:

• The highest inflation rate in 16 years
• 10 straight interest rate rises
• the second highest rates in the OECD

The Prime Minister and the Treasurer both understand this and had this uppermost in their minds when they framed May Budget.

We on this side of the Chamber understand that Australians are doing it tough, doing it tough on petrol rises, doing it tough on cost of living increases, doing it tough on interest rates.

That’s why the budget delivered by Wayne Swan contained massive spending cuts and a record $22 billion surplus to keep downward pressure on inflation and therefore downward pressure on interest rates.

I don’t consider myself an economic genius, but I did listen to my year 10 commerce teacher when he told me to build savings you need to increase revenue and to reduce spending.

And just as average households are forced to make these tough decisions, so too do governments.

In the May Budget not only did we see big cuts to bloated Howard government spending, we also saw new measures that sought to bolster the surplus. This is where this excise on condensate comes into play.

And it amazes me after years of worshiping the surplus how the Liberal Party have all of sudden forgotten the economic basics.

I remember the former Prime Minister John Howard saying in 2001:

“The last thing I will do is abandon the commitment I have with the Australian people to maintain a stable economy.

“A stable, growing economy is the source of wealth for all Australians.”

He goes on:

“And if any government undermines that, that government should be thrown out”

I remember our friend in the other place, the Member for Higgins, between writing memoirs saying:

“If you spend surpluses, you don’t have surpluses.”

“If you spend a surplus, what you’ve got is a deficit.” Mr President,

The Australian people remember that the Liberals preached economic responsibility but delivered something quite different.

They talk the talk but rarely deliver.

They ignored 20 warning from the Reserve Bank on their reckless spending Mr President... they also ignored similar warnings from the IMF regarding their “stimulatory” budgets.

And they have learnt nothing from their election loss.

Their former Opposition Leader Dr Nelson’s promise to cut 5 cents per litre to the fuel excise coupled with an increase to the single income pension, that conveniently overlooks 2.2 million other welfare recipients such as care givers, widowers or even veterans pension, together with their blocking of key government revenue raising measures will blow a hole in the budget surplus of at least $6.1 billion dollars each year.

That is a staggering 23% of the current budget surplus. So much for being economically responsible.

Even more staggering is that the new Opposition leader the member for Wentworth has continued down this economically irresponsible path.

The Liberals party’s childish opposition to government legislation in this chamber has shown what the Liberal Party truly values.

They value the interests of Porsche and Lamborghini drivers over the interests of working families.

They value tax breaks for multinational companies over services for working families.

And they value concessions for health insurance providers over $1200 tax breaks for working families.

Is it any one wonder that the Australian public rejected them and their conservative policies in last year’s election.

I think not...

In order to maintain a strong surplus it’s vital that Senators in this chamber pass these revenue measures to ensure that the economy continues to prosper into the future.

I would like, if you allow, to provide the Chamber some background regarding condensate and the details of this excise.

Condensate, as we are aware, is a light crude oil extracted from natural gas. Since 1977 a Crude Oil Excise exemption has applied to the sale of condensate.

Originally, this regime was designed to encourage, among other things, exploration and development of petroleum resources under the North West Shelf project.

This was an important measure at the time and the stakeholders of the North West Shelf project have benefited substantially from this tax incentive.

Treasury estimates place the worth of this concession at almost 2.7 billion from 2001-02 to 2010-11 —A substantial boost and a good leg up to the industry.

The profit derived from the companies that operate on the North West Shelf run in the tens of billions of dollars, therefore withdrawing this tax exemption would have little or no effect on the operations of these companies.

Further, the argument the Liberal Party members put forward that the implementation of these measures will have adverse impacts on future investment decisions are plain wrong and not based on any objective evidence or analysis.

As for the opposition’s claim that lifting the tax break will increase gas prices in the WA, this is also furphy perpetuated by the members on the other side of the chamber to help their friends in a multi-national reap even higher profits.

Domestic gas consumers in WA make up less than one per cent of Woodside’s revenue. Even the former leader of the opposition himself said and I quote:

“I’m advised in part it’s not likely to have any impact on domestic gas prices.” (August 19)

How many other companies in this country get this sort of tax break or financial benefit?

The Liberal Party have once again shown their true colours, backing in a massive multi national over working families.

Even more galling the same company benefited back in 2001 from a Howard Government tax cut worth $460m that were not passed on as lower prices to consumers.

Yet those opposite continue to argue for this measure to be stripped from the budget, undermining the mandate this Government was given to manage the economy responsibly, to combat inflation and to lead Australia into the future.

And they won’t say how they will pay for it or make up the difference. The black hole will stand and the effects will be severe.

Don’t worry, they say, it’s only a small budget hole. Mr President, $6.1 Billion is not a little hole, it is a reckless undermining of the entire budget.

It is irresponsible and reckless to ignore this reality and for the opposition to block this bill.

But Economic irresponsibility seems to be par for the course with this opposition.

The liberals opposite have repeatedly demonstrated where their political allegiances lies; consistently we see the opposition siding with big business over working families - blind profits over good policy, recklessness over responsible management of the Australian economy.

How many times have we seen it since the election?

They stood on the side of the liquor industry protecting massive corporate profits from ready to drink alcopops.

They stood on the side of a system of the big oil companies, blocking the Fuel Watch scheme that would help families by providing transparency to fuel pricing.

The Australian people were being offered an opportunity to easily access information so vital for consumer choice. What did the liberals say?

They would rather that information continue to be provided to the retailers, for their benefit not for motorists at the pump.

Now we see the same stance on this bill. A bit more profit for a few over the economic security of the many. The opposition has made its priorities clear once again.

The Senators on the opposite side of the chamber should do the economically right thing and pass this legislation to help ensure working families in Australia are able to prosper in these difficult economic times. If this bill is defeated it will be a win for corporate greed and Liberal Party ineptitude.