Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

My question is to the Minister representing the Treasurer, Senator Wong. Does the Gillard government now recognise that the dodgy and ill-thought-out mining tax deal it negotiated, exclusively and in secret with the three biggest mining companies, has provided a direct—

Government Senators:

Government senators interjecting—

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

Order! Order on my right! Senator Cormann, continue.

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Does the Gillard government now recognise that the dodgy and ill-thought-out mining tax deal it negotiated exclusively and in secret with the three biggest miners, has provided a direct federal government incentive to state and territory governments around Australia to increase royalties on iron ore and coal?

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

What that question is putting to me is that Campbell Newman just could not help himself: 'It's all your fault, federal government!' He could not help himself when he cut 14,000 jobs. He could not help himself when he slashed health and when he cut education, and he could not help himself when he imposed what has been described as one of the biggest tax increases on the mining sector around the world. Now, of course, Senator Cormann, you might recall you have been in here on many occasions telling us about job losses that the mining tax and the carbon tax will impose. Have you listened to Rio Tinto? 'This increase'——meaning Campbell Newman's increase—'will further endanger jobs and investment in the coal industry at both existing mines and new projects.' The Queensland Resources Council has said it will mean job losses.'

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

Who said this?

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

This is the Queensland Resources Council, that well-known bastion of Labor values:

It risks further mine closures and there are many coal projects on the drawing board that will now never get off that drawing board.

But what do we hear from the great defenders of mining jobs over there? Not a single word. You are absolutely hypocritical. You are happy to stand up for so-called mythical job losses before they have occurred when they have not occurred, but you will not stand up for those people whose jobs are in the gun because of your coalition mates.

Honourable senators interjecting—

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

Order! You are entitled to be heard in silence, Senator Cormann, and when silence returns to the chamber I will give you the call. Order on my right!

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

The minister is in pain because she has to pay the bill for the royalty increases.

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

Order! That is arguing. Ask the question.

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Mr President, here is my supplementary question. What is the total cost to the federal budget of decisions by governments in Western Australia, New South Wales, Tasmania, South Australia and Queensland to increase royalties on iron ore and coal since the Prime Minister and the Treasurer made the promise to the three big miners, in a private deal, to credit all state and territory royalties on iron ore and coal against any mining tax liability?

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

Isn't it extraordinary that Senator Cormann, the great defender of the mining sector, is not at all interested in that question nor in the one before about the impact on mining jobs in Queensland. I am not surprised you are getting up. You do not want to talk about it, do you? You are very sensitive when it comes to Liberal-imposed taxes.

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Mr President, I rise on a point of order and that is the requirement for the minister to be directly relevant to the question. There was a very specific question asked and that was: what is the cost to the federal budget from these royalty increases in states around Australia because this government has made a promise to the big three miners to credit all state and territory royalties against their mining tax liability? It is a number. The only answer that can be directly relevant to the question is a number and, if the minister does not know it, she should take it on notice and sit down.

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

Order! The minister has been addressing the question for 17 seconds and there are 43 seconds remaining. I invite the minister to address the question.

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

As I said before, it is interesting that those on the other side do not want to talk about the effect on employment of a Liberal royalty increase but they are happy to exaggerate and make false claims about the effect on jobs of a Labor government's policy. I will share this with the Senate in response to the question: this comment has been previously made—'increasing tax on mining will cripple Australia's most productive industry and anyone who does not think this will deter investment has got rocks in their head'. Who said that?

Senator Conroy interjecting—

No. It is even better. It is our own Lord Brandis!

Opposition senators interjecting—

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

Order! Senator Wong, you need to refer to honourable senators by their correct titles.

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Given the minister did not get anywhere near answering that question, I ask it again. What is the impact on the federal budget bottom line of increases in royalties in states around Australia given Labor's promise to credit all their state royalties on iron ore and coal against the mining tax liability. Given the government is already confronted with a $120 billion budget black hole on the back of its latest spending spree, how does the government propose to plug this latest multi-billion dollar budget black hole of its own making?

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

I am asked about the bottom line and the bottom line is this: there are 14,000 Queenslanders who are going to lose their jobs as a result of your colleagues, let alone those in the mining sector who on the basis of the comments of the mining companies also have their jobs at risk.

Mathias Cormann (WA, Liberal Party, Shadow Assistant Treasurer) Share this | Link to this | Hansard source

Mr President, I have a point of order in relation to the requirement for the minister to be directly relevant. How can comments on what may or may not be happening with the Queensland state budget be relevant to a question about the impact on the federal budget in relation to state royalty increases around Australia? I asked a specific question about the impact on the federal budget. The minister did not go anywhere near it. There is no way that you could possibly rule that she was being directly relevant to the question.

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

Mr President, on the point of order: the minister is being directly relevant. I can certainly understand the fact that Senator Cormann has a glass jaw and regrets asking the question, but the minister is having a great deal of fun and is absolutely relevant.

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

Order! The minister has 41 seconds remaining. I draw the attention of the minister to the question.

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

Thank you, Mr President. It is true that the Queensland government have imposed royalties and it is also true that we oppose the imposition of those royalties. I await those opposite actually indicating that they do not agree with it because I would like them to be aware of this: an executive from one Queensland leading coalminer said yesterday about the Campbell Newman government: 'They have absolutely lost the plot; this should ensure no new developments in Queensland and a declining set of existing mines—so much for a government which understands business, you would not let them run a train set.' That is from the mining companies. (Time expired)

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

As much as I would like another Senator Cormann question, I ask that further questions be placed on the Notice Paper.