John Williams (NSW, National Party) Share this | Link to this | Hansard source

My question is to the Minister representing the Minister for Climate Change and Energy Efficiency, Senator Ludwig. I remind the minister that on 1 July 2014 the government's carbon tax, the world's biggest carbon tax, will impact heavily on the transport industry with a further reduction in the diesel fuel rebate of 6.85c a litre, in effect adding $510 million diesel tax per year to the trucking industry. By how much will a carbon tax fuel levy reduce emissions from Australia's 47,000 trucking businesses by the imposition of this extra $510 million tax on them?

Joe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

I remind Senator Williams that the impact of the carbon price in the transport industry is a couple of years away, because we have ensured that in 2014 we will look at the impact and deal with it at that point. It is important to recognise that this government is acting on climate change—unlike the deniers on that side of the chamber, who do not believe in climate change, who do not want to drive to a clean energy future, who do not want to ensure that we can have a clean energy future, who want to continue to say: 'This has no impact. This is not going to happen.' This government has put in place assistance for households but also assistance for business. And who opposed that? Those opposite opposed it. They opposed having assistance for business. They opposed—

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, I rise on a point of order. I asked the minister how much emissions will be reduced on our 47,000 trucking companies by the imposition of the $510 million extra fuel tax. Will he please directly answer that question?

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

The minister still has 52 seconds remaining to answer the question. There is no point of order at this stage.

Joe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

This is what Senator Williams misses out—all fuel, including petrol, diesel and LPG gas for passenger motor vehicles and light on-road commercial vehicles, will not be subject to a carbon price. Households and most small businesses already pay fuel excise on their transport fuel and will not face a further carbon price. I think Senator Williams does not add all of the facts when he asks that question. This is because the government knows that fuel costs are a major expense for family budgets. Transport will not be directly subject to a carbon price under the government's carbon pricing mechanism. They will not need to worry about buying and surrendering permits; however, some businesses get fuel tax credits, which means that they will pay no excise or just pay a road-user charge. Fuel tax credits will be reduced— (Time expired)

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. Can the minister advise how many Australian trucks are now fitted with the Euro 4 engines, which are designed to give cleaner emissions? Given that these Euro 4 engines also increase fuel consumption by around 10 per cent, meaning more costs for the operators, does the minister now concede that the trucking industry is already being taxed in the pursuit of cleaner emissions before it is lumbered with a carbon tax on 1 July 2014?

Joe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

I know Senator Williams continues to try to work through a smear campaign, so he has moved out of the portfolio of climate change and gone straight into transport, which is under Minister Albanese's portfolio. It is not one I represent, but to the extent that he was referring to emissions standards for vehicles—a transport issue—I am happy to address the issues dealing with their fear campaign on the carbon price. One would have thought they would have given up by now, but I will continue. Those in the heavy on-road vehicles sector will be exempt for the first two years, but the government intends to bring them into the system by 2014-15. So fuel tax credits entitlements will not change— (Time expired)

John Williams (NSW, National Party) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. Given that the government has increased truckies' road user charges by around $500 million a year, and is levying a further $500 million with a carbon tax component that the Transport Workers Union has referred to as a 'death tax' on the trucking industry, can the minister explain how this heavy burden on the nation's truckies will flow into the costs of living for Australian families? How much will it reduce the temperature of the globe?

Joe Ludwig (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | Link to this | Hansard source

I thank Senator Williams for his broad view of the world, but those opposite also commit to reducing carbon emissions. Maybe those on this side should tell you that you also signed up to your 'direct action' plan.

I also point out that the heavy vehicle transport industry has a two-year transition before joining the scheme. That is because we understand that this industry is made up of small operators who deserve time to prepare for a carbon price. To offset the impact of the carbon price, including price rises brought about by slightly higher freight costs, over half the money raised from the carbon price will be used to assist households. Nine out of 10 households will receive assistance through tax cuts or payment increases and more than four million will get an extra buffer with assistance that covers 120 per cent of the average price impact of the carbon price. (Time expired)