Alan Eggleston (WA, Liberal Party) Share this | Hansard source

I do not know whether hypocrisy is ruling the national interest at all. I think delusion is somehow ruling the policies of the Labor Party. Today in the House of Representatives 74 members betrayed the Australian people. Today legislation for a carbon tax was passed on the basis of a lie, for a carbon tax the Australian people were promised would not be introduced. The Labor-Green carbon tax will, I am sure—I am convinced absolutely, Senator Cameron—drive up prices, threaten jobs and do nothing for the environment. It is in fact a great big tax on everything and every year that tax will cost the Australian people more—not only in tax but in jobs and in diminished competitiveness on the world market.

Australian industry depends very much on competitiveness and yet this carbon tax will very much threaten it. For example, at the Boao conference held earlier this year in Perth, Kerry Stokes pointed out that, while the Australian economy is very dependent on China, China has many trading partner options and Australia has one—namely, China—for our mineral resources. So if our prices are too high and we become uncompetitive then the Chinese will be going elsewhere—most likely to West Africa—and our great minerals boom will certainly diminish.

A carbon tax will cost jobs. According to the Minerals Council of Australia it will cost some 23,000 jobs in the mining sector alone and then of course there will be secondary job losses in local business. Talk of alternative green jobs is nonsense. The pay in such jobs will be much lower, and that is something that the Labor Party never tells people. They will be a long way away, for the most part, from present centres of employment. The talk of alternative green jobs really is not realistic at all.

The carbon tax will progress to an ETS in 2015—or that is what we are told—and it will be the highest costing ETS in the world, with only New Zealand and the EU having ETSs presently, both of which are small by comparison to what is proposed for Australia. The big flaw in this proposal to have an emissions trading scheme is that none of our major trading partners will have either an ETS or a carbon tax—that is, the United States, China, South Korea, India and Japan will not be going down this pathway. The question will be: who will Australia trade carbon credits with? The answer will be: no-one. And the Australian people will have to pick up the cost of this enormous tax.

Last month the Minerals Council published an article outlining the extensive damage to jobs that would be caused by a Gillard government carbon tax. It stated that in Australia just 93,000 employees out of a total manufacturing workforce of over a million would receive assistance under the Jobs and Competitiveness Program, the government's primary initiative to safeguard trade exposed industries. Further research undertaken by the Minerals Council compares the Gillard government carbon tax with the European Union's emissions trading scheme, illustrating the widespread negative outcomes for our economy. Under the EU scheme, 48 per cent of manufacturing value added is covered by industry assistance programs. In Australia only 22 per cent of manufacturing value added will be eligible for assistance. Under the EU scheme 78 per cent of manufactured exports will be eligible for safeguards to ensure they remain competitive under carbon pricing. In Australia only 41 per cent will be covered. Under the government's own figures three million Australian households will be worse off under the carbon tax. Analysis by the WA Treasury shows that over half of WA households will be worse off under a carbon tax as the government's supposed assistance will not fully compensate households for increases in the cost of living.

Today really is a black day for Australia. Here in this house we are debating a piece of legislation based on a lie. (Time expired)