Kim Carr (Victoria, Australian Labor Party, Minister for Human Services) Share this | Hansard source

One point five billion dollars over four years. He says, 'Oh, this is to offset the carbon price.' What a pathetic excuse! What a miserable attempt to hide what is clearly a tax hike based on the coal industry! What we know is that the New South Wales government's increase in mining royalties increases the risk of investment cuts and increases the level of uncertainty for businesses.

We know that in Queensland a similar pattern has emerged. The Queensland government has announced an increase in the royalty payable for the coal price at more than $100 a tonne from 1 October last year. The increase will see a jump of some 10 per cent—a 10 per cent hike to 12.5 per cent—for every tonne of coal sold between $100 and $150. Coal sold for more than $150 a tonne will attract a 15 per cent royalty. This is an increase included in the Queensland 2012-13 state budget and it is expected to raise $1.64 billion over the next four years. So what we saw in the case of Queensland is that the government's decision to raise the royalty on coal will create additional pressures operating in that state, which is already being affected by the falling commodity prices, by higher costs and by the strong Australian dollar. There is not one word over there about the impact of those charges on the coal industry.

I am particularly interested that Queensland coal operators, under the resources rent tax, do not bear a liability and cannot offset it until such time as their profits exceed $75 million. If their profits are below $75 million, that means they cannot actually claim the state royalties back. So the consequences of the changes in Queensland are that small and medium-sized miners are in fact hit with that tax. There is not one word over there about the consequences of that operation and not one word in defence of the mining industry on those matters. We know now that Queensland is the fifth state—after Western Australia, South Australia, Tasmania and New South Wales—to increase the iron ore and/or coal royalties since the Commonwealth resources tax reforms were first introduced in May 2010. If the opposition were serious about these matters, they would have drawn attention to what has been a very substantial increase in revenues that have come from the states.

Upon coming to office, this government was faced with quite extraordinary economic difficulties flowing from the effect of the two-speed economy. We were determined to ensure that the government was able to assist people in rebuilding this country. That is why there have been record investments in health and education, record investments to build infrastructure and record investments to produce more jobs, more opportunities and more prosperity in this country. Despite the extraordinary headwinds of the international economic downturn, the economy has created 380,000 jobs, including some 67,000 jobs in the mining industry. There has been $152 billion of capital expenditure in mining, an increase of 160 per cent. There has not been one word from over there about the importance of those economic effects. Total business investment across the economy has increased by 45 per cent. There has not been one word from those opposite about the strength of the Australian economy. This government is in the business of ensuring that we, as one of the more prosperous countries in the world, are able to achieve this prosperity through having a balanced economy, not relying on resources alone but appreciating the skills and opportunities for the whole population.

That is the legacy this government has been building upon. That is why we negotiated and delivered the minerals resource rent tax. The coalition should stand condemned for their opposition to this proposition from day one. The opposition have no credibility whatsoever when it comes to these questions. The opposition have not been able to release any of the costings for their promises. They are not subject to any scrutiny, any accountability. When people had a chance to look at their costings at the last election, they left a funding gap of some $11 billion. Their approach to these issues is about covering up the fact that, in aggregate, they now have commitments of $70 billion over their expenditure. They need to find mechanisms to cover up the inevitably savage cuts that they will be making to hospitals, schools and universities. These savage cuts will have to be endured by working people across this country.

That is what this debate really is all about. It is not about the concern of the opposition for the revenue streams that are coming from the mining industry. Nothing could be further from the truth. We have an opportunity here to build a better country if this parliament is prepared to seize it. But those opposite have taken every opportunity to turn their backs on fairness and turn their backs on ensuring that we are able to build a stronger economy and a more equal society. After 21 years of consecutive economic growth, Australia is now the 12th largest economy in the world. This is despite the economic crisis.

You would have thought we would be able to seize that opportunity, build a much stronger and fairer economy and ensure that the people of this country are able to enjoy the security that comes from that sort of prosperity. But those opposite have been pursuing a policy which is really about defending vested interests. That is the long and the short of it. It is about defending those that are already extremely well-off. It is not about ensuring we have fairness built into the system. You have opposed every single measure to ensure we have a more productive economy and a fairer society. You are not in the business of ensuring the long-term reform that is needed to build the economic underpinnnings to secure the prosperity of Australia.

While commodity prices are down, the revenues from this arrangement will be down. As commodity prices improve, the revenues will improve. We should not, however, fall for a moment for the claims that have been made, the crocodile tears that have been shed, about concerns about the mining industry. I am particularly concerned about the position that is taken in the education area and the failure of the conservative governments around this country to meet their responsibilities. The royalties they have taken from coal and iron ore have been used for other purposes at the same time as we have seen massive reductions in the hospital and education systems across the country where conservative governments have been in office. To me, this is a harbinger of things to come. What we are likely to see, if the coalition are ever elected, is a government that is determined to ensure that the pandering to vested interests is accelerated but the opportunities to support the people of this country with proper education and health take a back seat. We are entitled to ask, with a motion of this type: what does the coalition actually stand for? What does it actually seek to do?