Penny Wong (SA, Australian Labor Party, Minister for Finance and Deregulation) Share this | Hansard source

I am pleased that the senator has asked me this question. It gives me the opportunity to respond to the modelling and also to the second part of the question, which deals with the carbon pricing. In relation to the level of the carbon price, which is the end of this question, the government has designed a period of a fixed price followed by a floating price. It is the case that the carbon price in Europe has been affected by current financial conditions in Europe. That is unsurprising, but I would again make this point: the government is providing a very substantial amount of assistance through the Jobs and Competitiveness package to Australian industry, and it is wrong simply to look at price without recognising also the very significant elements to support competitiveness that the government has in its package.

In relation to modelling, it is true that there is modelling out there that has been commissioned by various parties, various individuals and various industries. Unsurprisingly, that modelling is often used by people to promulgate their particular position. The government stands by the Treasury modelling—the modelling done by the people who served, so ably, Peter Costello and John Howard; the people who now serve this government—which shows that we can grow our economy, grow our incomes and grow jobs with a carbon price.