Anne Urquhart (Tasmania, Australian Labor Party) Share this | Hansard source

There is one side of this place that has a plan to damage business and consumer confidence and it is not my side of this place. There is one side that come in here day after day after day, ranting about how our way of life is being ruined. They forget that Austra­lia's economy is outperforming the world. We are in our 20th year of economic growth, which is a record unmatched by any other advanced economy. They forget that through Labor's quick action during the global financial crisis and the resilience of our economy we are now in a strong position. They forget that Australia's GDP is signifi­cantly higher than its pre-GFC level while many advanced economies are still strugg­ling to make up for lost ground. They forget that our unemployment rate is lower than all but one major advanced economy.

They always forget that Australia has lower government debt and lower budget deficits than any of the major advanced economies and that we will return to a budget surplus sooner. They forget that, in the May budget, real growth in spending averaged one per cent a year over the five-year forward estimates. That is the lowest average growth rate in any five-year period since the 1980s. They forget that, in contrast, real spending growth averaged 3.7 per cent a year in the last five years of the former coalition government. The Gillard Labor government understands that it is important to keep government spending growth low so as not to crowd out private sector invest­ment, something the former government seemed to forget in its final years. They forget that there are currently severe economic problems across the world, from the Mediterranean to the United States. Their focus is so insular that they forget that these global issues weigh on the minds of busin­esses and consumers, resulting in movements in the confidence of these groups.

It is clear that the opposition have lost their way and are stuck in a deep hole of negativity. They concentrate on blustering negative anecdotes, and the facts are blatant­ly against them. The facts are that, under this Labor government, Australia has low unem­ployment, strong job creation, record terms of trade and an unprecedented pipeline of business investment. And whilst our fund­amentals are strong, the government has a clear plan to maximise Australia's oppor­tunities by getting back in the black by 2012-13, investing in productive capacity and boosting participation, moving to a clean energy future and advancing tax reform.

Today we focus on Labor's plan to cut carbon pollution and drive investment in clean energy technologies and infrastructure like solar, gas and wind. It will help build a clean energy future for our kids and our grandkids. Labor is committed to cutting carbon pollution because climate change is an issue that is not going to go away. Treas­ury estimates that if it does not put a price on action now, a price over $60 a tonne would be required to make the necessary cuts in carbon emissions.

It is unfortunate that those opposite have come in here today to completely misrepre­sent the Gillard Labor government's goal in this space. Today, they have put forward a matter of public importance that states:

The Gillard Government's plan to damage business and consumer confidence through the introduction of a carbon tax.

Let us examine that for a moment. Those opposite are so disingenuous that they pur­port that this Gillard Labor government has a plan to damage business and consumer con­fidence. They also purport that those on this side of this place have come here with a wrecking ball, seeking to destroy the way of life of hardworking Australians. There is one side of politics that has the wrecking ball out and it is definitely not this side. We have a plan for Australia's future and we are the party standing up and making the tough decisions. Labor are the party saying yes to taking action on climate change, not hiding behind two letters found consecutively in the middle of the alphabet.

Every cent raised from the carbon price will help businesses to make the transition to a clean energy economy, assist households and tackle climate change. The Gillard Labor government will support small businesses through the transition to a clean energy future, as we appreciate the important contri­bution small businesses make to the econ­omy and to supporting jobs. The carbon-pricing mechanism will not apply to small business. It will apply to around 500 of the biggest polluters who will be required to pay for their pollution. Small businesses will not have to count or monitor their carbon pollu­tion or electricity use. They will not have to fill in a single form as part of the carbon price reform.

Specifically, the Gillard Labor govern­ment is delivering a small business assist­ance package worth $1.3 billion in the 2013-14 income year to businesses with an annual aggregate turnover of less than $2 million. Ninety-six per cent of Australian businesses, approximately 2.7 million small businesses, fall into this category—hardly the wrecking ball those opposite continue to somehow believe. Further, while most small businesses will not be materially affected by the carbon price, the Gillard Labor government reco­gnises the huge contribution small businesses make to our economy, so we are extending the small business instant asset write-off threshold to $6,500. This will boost cash flow and help small businesses to grow and invest in assets.

The Gillard Labor government will also establish a $40 million program to provide information to small businesses and commu­nity organisations on practical measures they can take to reduce their energy costs. Being able to get clear information from trusted sources is vital to small business. This pro­gram will be delivered through grants to industry associations and non-government organisations which have established rela­tionships with small businesses and commu­nity organisations.

The Gillard government will also provide additional funding to improve delivery of clean technology advice and other non-grant business support programs to small and medium businesses. These include the supp­lier advocates and Enterprise Connect. Enter­prise Connect advises small businesses on knowledge, tools and expertise to im­prove productivity, increase competitiveness and realise their growth potential. I have seen the benefits of Enterprise Connect's work first­hand where their services resulted in an expansion of the Hivotech workshop in Burnie, Tasmania. That is one example, of many, of the fantastic work undertaken by Enterprise Connect, a program that those opposite have threatened to axe, a program that actually solves a problem with industry: where small and medium sized business owners do not have the time or expertise to take their business to the next step, Enter­prise Connect provides advisers with real business experience to facilitate the next steps in a business's journey. Additionally, all businesses in the food-processing, metal­forging and foundry industries will be able to apply for grants for energy efficiency impro­vements under the $200 million Clean Technology Food and Foundries Investment Program.

This Gillard Labor government sees assisting households through the transition to a clean energy future as vital for both consu­mer and business confidence. The initial carbon price of $23 per tonne will have a modest impact on overall household living costs. The Treasury estimates that it will trigger an increase in the consumer price index of 0.7 per cent, or $9.90 per week in average household living costs, of which about half is due to higher household energy bills. That is why nine out of 10 households will get assistance under the Household Assistance Package, to support them through the transition but to also support those small businesses that rely on household expendi­ture. In fact, almost six million households will get assistance that meets or exceeds their expected average price impact.

Those opposite do not see supporting households through the transition to a clean energy future as important. Not only will their plan to cut emissions, which one can only hope they still hold, cost the average household $1,300 per year but they will also rip away the government's entire Household Assistance Package. So not only will those opposite seek to slug households with a $1,300 new tax that they will give to some polluters, whom they have chosen, but they will rip away any assistance that includes any increases in the pension, unemployment benefits and family tax benefits. So much for looking after consumer confidence! Just yesterday, the Australian Council of Social Service said:

ACOSS has long accepted the overwhelming scientific consensus that climate change will affect us all, and are motivated by the stark reality that people who live in vulnerable situations and on low incomes will be affected first and worst.

This is the reason we have argued that effective and equitable action is vital to reduce carbon pollution and we are keen to work with all parties to help build a community consensus around the solutions.

It then went on to say:

ACOSS is satisfied that the householder assistance package will provide people on low incomes with sufficient compensation to cover the anticipated modest increases in costs flowing to consumers.

Under the Gillard Labor government, assist­ance is permanent and it will increase. The extra payments are indexed to any future consumer price increases. (Time expired)