David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Climate Change and Water, Senator Wong. Minister, what impact has the announcement of the carbon tax to take effect from 1 July next year had on investor confidence in Australian companies?

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

As the senator should know—

Government Senators:

Government senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Wong, your own side is drowning out your answer. We are entitled to hear it.

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

As the good senator perhaps should know, the thing that investors do need is certainty. If he engaged in this debate with a modicum of a sense of the public policy requirements, he would know that what business is seeking is certainty.

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

Senator Wong, resume your seat. I know people want to talk amongst themselves sometimes, but I need reasonable silence so I can hear the answer. Senator Wong.

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

As I was saying, what the senator should be aware of is that the business community, the investment community, do seek certainty across the board in policy areas but certainly, critically, in the context of carbon pricing. If he had taken the time along with the government of engaging with business, he would know that there are a range of different views about how this should be constructed, what the architecture should be, but there is a deep concern about the ongoing uncertainty associated with carbon pricing. The government is very aware of that and does believe that providing certainty in this area is important to making sure investment decisions that have long-term outcomes can be made. We are very concerned to ensure that investors, particularly, for example, in the electricity generation sector, have the capacity to make those investment decisions with policy certainty. So that is why we are working through with the multiparty committee a mechanism to price carbon. There are a range of issues about the design of that mechanism. The Minister for Climate Change and Water has been clear about the processes associated with discussing those. The government is engaging with business to do that. We will continue to do that. Unlike the opposition, we will not try and foster uncertainty by saying before they see anything that they are going to overturn it in future and by fostering the sort of fear-mongering and scare-mongering that they do. (Time expired)

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Is the minister aware that investment analysts in Asia, such as JP Morgan, Credit Suisse and so on, are advising a four to five per cent fall in net profit, after tax, as a direct impact of your carbon tax on Australian diversified miners and that, without assistance, two aluminium smelters in Victoria will close, even at a carbon tax price of $10 a tonne?

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

There are a great many things said by different analysts, and I invite the senator to consider some of the comments made by a range of business leaders encouraging the opposition to take a more sensible approach to this.

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern and Remote Australia) Share this | Link to this | Hansard source

Heather Ridout!

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

For example, Brad Page, CEO of the Energy Supply Association, stated that investors need ‘an equitable and enduring greenhouse gas emissions price signal’—

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern and Remote Australia) Share this | Link to this | Hansard source

Senator Ian Macdonald interjecting—

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

Perhaps I need to say that again, because Senator Macdonald clearly is not interested in what the electricity sector has to say: investors need ‘an equitable and enduring greenhouse gas emissions price signal’ and ‘this can only be achieved through bipartisan policy agreement.’ We would welcome the opposition actually approaching this issue with a focus on what is right for the nation, a focus on sensible public policy, but regrettably they have been lacking. Regrettably all they wish to do is to run a no campaign, a fear campaign and a scare campaign on this important policy issue.

David Bushby (Tasmania, Liberal Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Given that investment analysts are already advising that the carbon tax represents a significant disincentive to invest in Australian companies, is your claim that a carbon tax will be good for the economy simply bluff and spin?

Doug Cameron (NSW, Australian Labor Party) Share this | Link to this | Hansard source

What about your $30 billion black hole, you economic incompetents?

Eric Abetz (Tasmania, Liberal Party, Shadow Minister for Employment and Workplace Relations) Share this | Link to this | Hansard source

Better than being a zombie.

Honourable Senators:

Honourable senators interjecting—

John Hogg (President) Share this | Link to this | Hansard source

When there is silence on both sides, we will proceed.

Ian Macdonald (Queensland, Liberal Party, Shadow Parliamentary Secretary for Northern and Remote Australia) Share this | Link to this | Hansard source

Dougie, zombies are meant to be seen and not heard.

John Hogg (President) Share this | Link to this | Hansard source

When there is silence on both sides, we will proceed.

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

This is an economic reform that is about transforming Australia’s economy in the most efficient way. If you look back through our history at a range of economic reforms which were about transforming our economy, you will see there were times when people said that this would be the end of industry—when we went through the arguments about trade liberalisation, about floating the dollar, those important economic reforms.

Nick Sherry (Tasmania, Australian Labor Party, Minister Assisting the Minister for Tourism) Share this | Link to this | Hansard source

Superannuation.

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

Thank you, Senator Sherry—of course, superannuation. We heard those voices—some on the other side—saying this was the end of the world. Perhaps in five or 10 years time, when we have had a carbon price, when investors are pricing that into their long-term decisions, as this country moves to a cleaner energy, low-pollution economy, people might look back on Senator Bushby’s question and think really how backward looking it was.