Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

My question is to the Minister for Finance, Senator Cormann. I refer to the government's petrol tax ambush and the comments by senior Liberal senator Ian Macdonald, who is totally opposed to the measure and thinks it is wrong and unfair. Is Senator Macdonald correct?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Senator Macdonald is right on very many things, but on this particular issue we happen to disagree. Guess what? On our side of the chamber individual senators are actually entitled to disagree. In the Labor Party you get thrown out. In the Labor Party, if you cross the floor against the edict of the Labor caucus, you get thrown out.

Senator Conroy interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Pause the clock. Senator Conroy, we are only 15 seconds into the answer and you are interjecting. Please, can we have some quiet. Senator Cormann, you have the call.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Let us be very clear about what it is the government is doing. In the budget the government announced that we would reintroduce regular indexation of the fuel excise. Indexation of the fuel excise was abolished, as senators would be aware, back in 2001. At that point, the value of the excise as a percentage of the price on fuel at the pump was worth about 42 per cent. That has fallen to 25 per cent today. The decision we made is that we wanted to preserve the real value of the excise on fuel moving forward, that the deterioration on the back of inflation of the value of the excise on fuel needed to stop. That is why we very openly and transparently set out in the budget that we would reintroduce that fuel excise indexation. That will have a modest impact on households. The typical household, using about 50 litres of fuel a week, will pay about 40c a week more for their fuel by the end of the financial year. There will be an additional cost of 40c a week for the typical household. This will enable us to make a significant additional investment in road infrastructure—job-creating, productivity-enhancing infrastructure—helping us to build a stronger, more prosperous economy so that everyone can get ahead. It will raise, in net terms, about $2.2 billion over the forward estimates, $19 billion over the next decade. If the Labor Party is opposed to it they should tell us where the money is going to come from, given that they are going to bring the budget back to surplus sooner. (Time expired)

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

Mr President, I ask a supplementary question. I refer again to comments by senior Liberal senator Ian Macdonald, who said the hike on the petrol tax 'increases the cost of living and is bad for people in regional Australia'. Is Senator Macdonald correct?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

Senator Macdonald is an outstanding senator for the great state of Queensland. He has done an outstanding job serving the people of Queensland in this place. Of course, Senator Macdonald and I have stood shoulder to shoulder working to abolish the Labor-Green carbon tax, which was hurting people right across Australia, which was hurting people across regional Queensland, which was hurting people in regional communities right across Australia. We have taken that burden off the shoulders of families, pensioners and small businesses right across Australia.

When it comes to the excise on fuel, we have very transparently put forward the position of the government. We have explained how we are going to give effect to that position.

Opposition Senators:

Opposition senators interjecting—

Stephen Parry (President) Share this | Link to this | Hansard source

Pause the clock. Senator Cameron on a point of order.

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

Mr President, on a point of order, I asked specifically about Senator Macdonald's comments that the petrol tax would increase the cost of living and is bad for people in regional Australia. I am simply trying to find out from the minister whether it will increase the cost of living and whether he agrees with Senator Macdonald that it is bad for people in regional Australia.

Stephen Parry (President) Share this | Link to this | Hansard source

Senator Cameron, the only question was, 'Is Senator Macdonald correct?' The minister has 15 seconds left to answer the question. If there were a bit more quiet on my left I would be able to hear the entirety of the answer. Senator Cormann, you have the call.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I understand the political point that Senator Cameron is trying to make. On this side of the chamber, unlike in the Labor Party, individual senators are actually entitled to their views. They are entitled to act in accordance with their views. Of course, the government have been very transparent about our views. (Time expired)

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

Mr President, I ask a further supplementary question. I refer again to comments by senior Liberal senator Ian Macdonald, who said that rather than hiking the petrol tax the government should abandon the Paid Parental Leave scheme. Is Senator Macdonald correct?

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

I have already explained the position of the government when it comes to fuel excise indexation, and our position is different to that of Senator Macdonald. But let me point out to the chamber that I am also aware of the views of a former senior Labor cabinet minister, none other than Craig Emerson. There was a time there when I could not switch on the television without Craig Emerson popping up and telling us how this is good sound economic policy, how this is a sound fiscal structural reform. There was a time when in the Labor Party there were sensible economic managers. There was a time when in the Labor Party there were some people with economic credibility. They have long gone.

Stephen Parry (President) Share this | Link to this | Hansard source

Pause the clock.

Doug Cameron (NSW, Australian Labor Party, Shadow Minister for Human Services) Share this | Link to this | Hansard source

Mr President, a point of order again on relevance. I asked was Senator Macdonald correct when he said that the government should abandon the Paid Parental Leave scheme and not hike up the petrol tax?

Stephen Parry (President) Share this | Link to this | Hansard source

The minister has almost 20 seconds left to answer the question.

Mathias Cormann (WA, Liberal Party, Minister for Finance) Share this | Link to this | Hansard source

The problem we have in Australia today is that Bill Shorten has not got the strength to stand up to the left of the Labor Party. People like Craig Emerson who are pursuing sensible economic policy, promoting regular indexation of the fuel excise, are right and it is time that Bill Shorten listened to them. (Time expired)