Simon Birmingham (SA, Liberal Party, Shadow Parliamentary Secretary for the Murray Darling Basin) Share this | Link to this | Hansard source

My question is to the Minister representing the Prime Minister, Senator Evans. Is the Prime Minister's promise that the impact of the carbon tax will be budget neutral as credible as her promise that there would be no carbon tax at all?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

I regret all the effort I made my staff go into preparing me for question time this week in terms of an understanding of the detail of the budget, because it clearly has been wasted work.

The government is committed to achieving a price mechanism on carbon. We are committed to reducing pollution in our economy. We are committed to trying to reduce that pollution, reduce the damage to the environment and have an economic framework for tackling carbon pollution. This objective has been pursued by this government through both its first and second term. On this occasion we formed a multi-party climate change committee which is trying to work through the details of a proposition to bring before the parliament to put a price on carbon. That is the commit­ment of this government. We have set about that work. That is progressing well. The minister responsible, Mr Combet, is engaging with industry, trade unions, comm­unity members, climate change experts, economists—the whole breadth of people with an interest in this issue—to try to work towards a model that will be acceptable in the broader community and acceptable to the parliament. That work is going well and it will continue.

Simon Birmingham (SA, Liberal Party, Shadow Parliamentary Secretary for the Murray Darling Basin) Share this | Link to this | Hansard source

Mr President, on a point of order: it goes to the direct relevance of the answer by Senator Evans. Senator Evans was asked about the budget neutrality of the carbon tax. He says he is so keen to talk about the budget. How about answering whether the carbon tax will in fact be budget neutral?

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

There is no point of order. Senator Evans, you have 23 seconds remaining to answer the question.

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

As I indicated, we are very committed to trying to achieve a price on carbon in the Australian economy. The budget laid down by the Treasurer on Tuesday did not include costing relating to that measure, because that measure is yet to be carried by the parliament. But when it is carried by the parliament then it will be reflected in future budget papers. (Time expired)

Simon Birmingham (SA, Liberal Party, Shadow Parliamentary Secretary for the Murray Darling Basin) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Given the CPRS was forecast to run at a deficit reaching $1.6 billion in 2013-14 alone, and the government is promising more household compensation under the new carbon tax than under the CPRS, will the minister guarantee that a budget-neutral carbon tax will have no negative impact on the budget bottom line in each and every year of the forward estimates?

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

We have made it clear that the accounting for the carbon price will be made in the budget when those final decisions have been made regarding the carbon price mechanism. We have indicated that it will be broadly budget neutral, but the details will be provided in future budgets once the parliament has had the opportunity to consider the legislation and to consider the arrangements we put in place to try and compensate families from the impact of a new price on carbon. We have made it very clear how we will pursue those arrange­ments. We are working through the detail. The legislation will come before parliament. When all that is finalised those matters will be reflected in the budget papers, as one would expect. We are very determined to try make sure that we tackle, once and for all, this very, very difficult issue, but one that needs to be tackled. (Time expired)

Simon Birmingham (SA, Liberal Party, Shadow Parliamentary Secretary for the Murray Darling Basin) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Will the minister explain, then, why any Australian should believe Labor's claims of returning to surplus when billions of dollars in carbon tax expenditure are unaccounted for and even the government and the minister himself will not guarantee that the carbon tax will erode their wafer-thin future surpluses?

Senator Wong interjecting—

Opposition Senators:

Opposition senators interjecting—

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

On both sides! Senator Birmingham, you have asked a question of the minister. For those on my right and my left to be carrying on a debate when the minister is standing and waiting for the call makes it very difficult indeed.

Chris Evans (WA, Australian Labor Party, Leader of the Government in the Senate) Share this | Link to this | Hansard source

I am glad the Senate finally got to some reference to this year's budget. The government has committed to bring the budget back into surplus. We have indicated the time frame. We have given the projections of how that is to occur. I think if one looks at the independent commentary since the budget there has been an endorse­ment of the strategy that the government will bring this budget back into surplus. That has not been questioned more broadly by economic commentators or business. Those budget estimates, confirmed by Treasury, have been accepted in the broader com­munity as being an accurate reflection of the government's ability to bring the budget back into surplus. The only question will be tonight as to whether Mr Abbott is able to do the same. Given that the Liberal Party has promised a program that will bring the budget back into surplus next year, we are very much looking forward to seeing how that goes.