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. I refer the minister to the annual survey of the CEO Forum, which indicates that 41 per cent of respondents are less likely to invest in Australia now than they were 12 to 18 months ago and highlights the carbon tax as their top target for reform or abolition. I further refer the minister to concerns from the Business Council of Australia that the government may be about to artificially inflate its carbon tax through changes to international trading rules. Will the government heed these concerns from those responsible for the employment of hundreds of thousands, if not millions, of Australians and rule out imposing additional carbon tax costs on Australian businesses?

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

There are two aspects to the question. The first is in relation to the CEO survey. I, amongst others, including the Prime Minister, the Treasurer today and I think my colleague Mr Robb yesterday did speak to the forum for which that survey was conducted—and it was a great pleasure to do so. In terms of investor confidence, I think the facts, if I may say, do speak for themselves. Since we came to government there have been some $919 billion—

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

How much?

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

There have been some $919 billion of private investment that has already occurred, despite the global financial crisis—some $919 billion, equivalent to about two-thirds of Australia's annual GDP—since this government came to power. Those on the other side, particularly the shadow treasurer and others, who run around seeking to talk down the Australian economy—to trash talk the Australian economy—do no Australian workers any favours. By running around talking in ways that damage confidence, by suggesting to people that somehow the economy will grind to a halt on 2 July, really does no Australian worker any favours.

In relation to international trading, which was the second aspect of the question—really, I think Senator Birmingham's way of getting two questions, but I like him so I will make sure I answer both of them in the first two minutes—I answered yesterday a question about international trading rules, and I would refer him to those answers. But I do want to say this: if he cares about international linking, he should have a look at his policy and his position, because the coalition say that they do not want any international trading or international linking—and that is what drives up the cost of your policy. You should understand that, Senator Birmingham. You should listen to the BCA. (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 refer the minister to her statement yesterday to the Senate regarding carbon tax revenue that:

The government updates its costings in the usual way in the budget and in budget updates, and that is the approach the government will be taking.

I ask the minister: why did the government not update its estimates for the carbon price in 2015-16 when it handed down this year's budget but instead relied on estimates that were at least a year old?

Jacinta Collins (Victoria, Australian Labor Party, Parliamentary Secretary for School Education and Workplace Relations) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. On one occasion there was a question that was very vaguely linked to the principal question, but on this occasion it is not a supplementary question.

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

Mr President, on the point of order—and I understand Senator Collins may not appreciate this, but I would have thought that Senator Wong would—the initial question referred to the BCA and to concerns about the artificial inflation of the carbon price.

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

Investor confidence.

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

The initial question—do you want me to quote it?—referred to 'concerns from the Business Council of Australia that the government may be about to artificially inflate its carbon tax through changes to international trading rules'. Such an action would have a direct impact on revenue, which is what the supplementary question is about. The two are very clearly related, Mr President.

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

Order! I am going to allow the question.

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

The answer to the second question is set out in the budget papers.

Mitch Fifield (Victoria, Liberal Party, Manager of Opposition Business in the Senate) Share this | Link to this | Hansard source

No, it's not!

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

It is. There is an explanation in there.

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

Order! If you wish to debate the issue, the time to do so is after three o'clock.

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

Mr President, I have a further supplementary question—

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

Have you found the budget papers?

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

and it is related to the budget papers—

Honourable senators interjecting—

and to the next set—will the minister commit that the Mid-Year Economic and Fiscal Outlook will, to use the minister's words, update costings in the usual way for the carbon tax, reflecting the reality that no analyst or commentator expects the global carbon price to be at the levels the budget currently assumes for the 2015-16 forward estimates? (Time expired)

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

Mr President, how is that a supplementary question to the primary question?

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

I am allowing the question, Minister.

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

In response to the second question, I referred the senator to the budget papers because they set out the reasons for the government choosing to rely on the Treasury modelling.

Senator Brandis interjecting—

Senator, that is a matter for argument. The response to it was clearly set out in the budget papers. The government will continue to update the budget in the usual way at the MYEFO at the next budget, which is more than can be said for the coalition, who have yet to produce a properly costed policy, who continue to use catering companies and those found to have acted unprofessionally to do their costings and who then come in here and expect people to take them seriously when it comes to the economy.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

My question is to the Minister representing the Assistant Treasurer, Senator Wong. On Monday, Master Grocers Australia released a damning report into the effects of Australia's supermarket duopoly—the 80 per cent share of Coles and Woolworths in the grocery market—on competition, and the wider implications for consumers, suppliers and local communities. Among other things, the report recommended the Australian government reintroduce a prohibition on anticompetitive price discrimination, similar to that in place in other OECD nations, and repeal the provision in the Competition and Consumer Act that allows cross-subsidisation between related entities. How does the federal government plan to address the serious issues this report raises?

Senator Chris Evans interjecting—

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

I was just waiting for Senator Evans's little interjection to finish because I was interested to see if Senator Xenophon wanted to respond to him, but that is another issue I suppose. I thank Senator Xenophon for the question. I also welcome him back and hope he is feeling much better after being away.

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

Not after this answer!

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

That is harsh, Senator. The government is aware of the report by Master Grocers Australia to which the senator refers and is also aware more generally about concerns regarding the behaviour of major market players towards their suppliers. The government takes these concerns seriously. Whilst price competition between large supermarkets has, thus far, benefited consumers through lower prices, people are concerned that this may have been achieved by major market players adopting practices which may raise questions under our competition and consumer laws—and I know senators in this place would have experienced their constituents expressing these views.

The government has amended the law in recent years to strengthen competition law and to provide the independent regulator, the ACCC, with the powers it needs to effectively pursue anticompetitive conduct. I advise that Master Grocers Australia have called for the reintroduction of the prohibition on anticompetitive price discrimination. The former law prohibiting anticompetitive price discrimination was the subject of a number of comprehensive reviews. I am advised that these reviews found that the prohibition actually increased, or locked in, the high prices paid by consumers and by small business.

In the Dawson review, which was the most recent comprehensive review of Australia's competition laws, it was noted that misuse of market power provisions in the competition laws are able to tackle anticompetitive pricing practices. In relation to allegations about cross-subsidy between related entities, the government is of the view that the current laws are appropriate and provide suppliers and consumers with significant protections against anticompetitive conduct.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. In February this year, the then Minister for Manufacturing and Minister for Defence Materiel, Senator Kim Carr, stated that he had genuine concerns about the way in which our supermarket chains were treating our local suppliers. Senator Carr said:

I continue to receive complaints from manufacturers about the way in which contract negotiations are conducted and contract terms are applied. There are many ways in which these problems could be fixed, but there is absolutely no doubt in my mind of the consequences of doing nothing.

With this in mind, what actions has the federal government taken about the serious concerns raised by Senator Kim Carr?

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

I am advised that Minister Carr in his then portfolio wrote to the Assistant Treasurer noting some of the concerns to which Senator Xenophon has alluded, and concerns which had been raised by manufacturers. Those concerns were passed on to the ACCC by the Assistant Treasurer. As the Senator is no doubt aware, the ACCC is an independent statutory authority and makes its own decisions regarding investigation and enforcement. It is the government's view that the ACCC should continue to have the powers it needs to effectively pursue anticompetitive conduct wherever it may be occurring.

We welcome the recent focus placed on the major supermarket chains by the ACCC. The commission has also stated that during 2012 it will be giving priority to competition and consumer issues in highly concentrated sectors, particularly the supermarket sector. The ACCC is closely examining major supermarket chains to ensure that any negotiations of supply arrangements are not unconscionable and do not involve a misuse of market power.

Nick Xenophon (SA, Independent) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Given Minister Kim Carr's comments in February and the release of Master Grocers Australia's report on Monday, does the government concede that more needs to be done in addition to those steps outlined by the minister in relation to the dominance of Coles and Woolworths in the grocery market?

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

To a great extent, Senator Xenophon, through you, Mr President, I really answered that aspect of the question, I think, in response to the first question. I understand the concerns the senator has raised. It is obviously an issue, as people would be aware, that many constituents have made representations on. The government's view is that Australians can be confident that there is a strong and robust set of competition and consumer laws and also a regulator that has appropriate resources and appropriate powers.

I would remind the Senate that the government amended the law in recent years to strengthen Australia's competition laws and also to provide the regulator, the ACCC, with the powers it needs to effectively pursue anti-competitive conduct. The ACCC, as I indicated in my earlier answer, was advised of concerns by the Assistant Treasurer, and I also understand they have called for producers to come forward with complaints and information about their dealings with the supermarkets. Such complaints would be treated confidentially and seriously. (Time expired)

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.