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

My question is to Senator Wong, representing the Minister for Climate Change and Energy Efficiency. Is the minister aware of detailed modelling on the carbon tax, released yesterday by respected modellers ACIL Tasman, which shows that six black-coal mines in my home state of Queensland are at risk of closing? Is the minister also aware that the Queensland economy stands to lose almost $13 billion in revenue from the loss of proposed coalmines as a result of the government's carbon tax? How can the minister justify this carbon tax and that loss of revenue to the Queensland government and indeed to Queenslanders generally?

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

I am aware of a great many statements which have been made by many individuals, including the Leader of the Opposition, about coal. I can recall, for example, the Leader of the Opposition saying:

A carbon tax ultimately means death to the coal industry.

That is a very measured contribution from a national leader. He said that, I think, at Peabody's Helensburgh mine—just prior to Peabody launching a $4.7 billion bid for Macarthur Coal—a few days after the clean energy package was announced. I think that really speaks for itself. We have a man who says he wants to be Prime Minister asserting death to an industry—and a $4.7 billion takeover after he says it. That really, I think, demonstrates the bona fides of the people in this place asking these questions.

The government recognises that there are a small number of gassy underground coalmines that have high fugitive methane emissions and that these will face increased costs under a carbon price. The government has put in place a coal sector jobs package of $1.3 billion to support jobs and assistance with transition. In addition, there is $70 million available for assistance to develop emissions reduction technologies for gassy coalmines through a coalmining abatement technology support package. When we consider these facts, with a $23 carbon price, once the government's assistance is taken into account, the impact on costs for the coalmining industry will, on average across the industry, be less than $2 for every tonne of coal produced. (Time expired)

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

Mr President, I ask a supplementary question. Is the minister aware that the ACIL Tasman modelling also shows that the government's carbon tax would force the premature closure of 17 per cent of existing black-coal mines in Australia and put at risk some 21,000 coalmining jobs? Can the minister explain how this tax, which the people of Queensland and Australia voted against, is good for workers, contractors and small businesses in Gladstone, Mackay, Townsville, Emerald and Moranbah whose very existence depends upon Central Queensland black-coal mines?

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

I am also aware of figures produced by ABARES which show that the total investment pipeline for coal related projects was some $70 billion worth of projects as at April 2011—some 19 coalmine projects committed or under construction, expected to add around 60 million tonnes per year of additional mine capacity by the end of 2014, and a further 68 mine projects in the coal pipeline awaiting approval. The only person talking about death to the coal industry is Mr Abbott.

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

Mr President, I ask a further supplementary question. I refer the minister to the ACIL Tasman modelling and ask: did the Prime Minister make her promise not to introduce a carbon tax under the government she led because she recognised the damage the carbon tax would do to workers and employment in Central Queensland? If that was not the reason she promised not to introduce a carbon tax under the government she led, what was the reason?

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

The opposition can continue to run its campaign against a price on carbon. The opposition—

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

I have a point of order on relevance, Mr President. My question was very clear. Did the Prime Minister make her promise not to introduce the tax because she recognised the damage it would do to Central Queensland workers? That was the question. I am not interested in whatever Senator Wong is babbling on about now. I would like an answer to my question.

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

There is no point of order. The minister has 47 seconds remaining.

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

We do not accept on this side the continued scare campaign, which is run by Senator Macdonald and those opposite, about jobs in the coal industry. We simply do not. For the reasons I have outlined, we believe that pricing carbon is the right reform for the economy and for the environment. I make this point, and this is about the jobs of tomorrow: does anyone in this chamber really believe that the world will not continue to put a premium on low-carbon goods and services? That has been the trend to date; it will continue to be the trend. We on this side want to make sure Australia can compete in the global economy, which increasingly places a premium on clean energy jobs and clean energy goods and services. We will put in place the reform to achieve that.

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

Mr President, I ask that further questions be placed on the Notice Paper.