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 Minister for Climate Change and Energy Efficiency, Senator Wong. Can the minister confirm whether the carbon tax liability that will be paid for a plane flying the 1,900 kilometres from Sydney to Noumea will be the same price as that paid for a plane flying the 1,900 kilometres from Sydney to Cairns?

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

Isn't it amazing? After all the froth and bubble and all the fire and brimstone about the Qantas dispute, we now return to the carbon price. They do not want to ask about interest rates, they do not want to ask about the economy, they do not want to ask about the budget and they do not want to ask about the disputes, the lockouts, that they refused to criticise.

Honourable Senators:

Honourable senators interjecting—

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

Order! Senator Macdonald, I see you are on your feet. I am not giving anyone the call until there is silence; it is as simple as that.

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

Mr President, I raise a point of order on the grounds of relevancy. This minister is legend at never even attempting to answer the question, because obviously she cannot. There was a very clear question. She has been in this answer for almost 30 seconds and has not got anywhere near the question that was asked. I ask you to bring her to order and to answer the question for once in her life.

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

There is no point of order. I cannot tell the minister how to answer the question. The minister has one minute and 35 seconds in which to answer the question.

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

I am very happy to talk about Qantas, the aviation sector and the carbon price. I simply make the point that the opposition are seguing off this. Clearly they want to get back to carbon, because they have suddenly worked out that people might ask what they knew about the lockouts.

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

Senator Wong, you need to come to the question.

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

Australian families and workers may ask what they knew about the lockout—

Stephen Conroy (Victoria, Australian Labor Party, Deputy Leader of the Government in the Senate) Share this | Link to this | Hansard source

The Qantas lockout.

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

The Qantas lockout, I should say; there has only been one lockout. What I would say is that, in relation to the aviation sector, the first point is this: Qantas and other airlines will not face any carbon price on their international operations. I would have thought Senator Birmingham would know that. They will face a carbon price on their domestic operations. I am advised this will have a very moderate impact on ticket prices. Unlike the Leader of the Opposition, who will charge taxpayers some $1,300 a year, which will be given to big polluters, we on this side will put forward tax cuts—tax cuts for Australians and increases to the pension, increases to the disability support pension. That is what we will do.

I would also add—and I will add to this in my next answer—that Qantas and the other airlines approached the government and asked if they could be covered by the carbon price mechanism for their domestic operations rather than manage their carbon liabilities through the fuel tax system. (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. I thank the minister for confirming that airfares within Australia will face a carbon price and those outside will not. Is the estimate by Qantas that they will be paying between $110 million and $115 million in carbon tax related costs during 2012-13 correct? What will the total cost to the Australian domestic aviation industry be? Is it not true that they only asked to be included under the carbon price mechanism after you said you were putting up their fuel prices anyway?

Honourable Senators:

Honourable senators interjecting—

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

The time for debating this is at the end of question time, not now. I remind both sides of that. The minister.

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

I am asked about the views of Qantas. Those opposite who like to quote Mr Joyce might like to refer to his comments in March 2011:

We can understand the logic on the carbon tax and why the government regards it as a necessity we're convinced that all organisations should do whatever they can to reduce emissions.

Interesting, isn't it, Mr President, the way in which those opposite fail to look at what CEOs are saying when CEOs talk about the importance of this economic reform but are very happy to scaremonger to the Australian people, as has been their wont in every aspect of the carbon price debate, rather than look at the facts. I would also quote from John Valastro, Qantas head of environment, on 12 October 2011:

Putting Australia at the forefront of this emerging industry would, over the long term, help shift our aviation-dependent economy to a lower carbon footprint, create green jobs and drive investment.

(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. How does the carbon tax impact the competitiveness of a company like Qantas compared to regional carriers like Air Asia, especially when today's RBA statement describes confidence as subdued in the economy? Won't Labor's carbon tax make it more attractive for Australians to use international airlines with international staff travelling to international destinations rather than support Australian airlines with Australian staff, even TWU members, travelling to Australian locations?

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

Last time I looked, Air Asia does not fly from Adelaide to Canberra. It does fly in Malaysia, where my family is from, and my father has flown it. But Air Asia is an international carrier and, as I said in my first answer, the carbon price will not apply to the international business of Qantas. In relation to the domestic sector, the carbon price is applied across the board. So in terms of competitiveness there is no change as between Qantas and Virgin.

Once again, we have complete economic illogic from the opposition. What they probably should do today is explain to Australians how much more tax, under them, Australians will pay through the $1,300 on all Australian households for their picking-winner carbon policy or explain what they will cut in services and what they will cut in Medicare for their $70 billion black hole. We wait to hear what they will do. (Time expired)