Senate debates

Monday, 25 March 2024

Questions without Notice

New Vehicle Efficiency Standard

2:00 pm

Photo of Ross CadellRoss Cadell (NSW, National Party) Share this | | Hansard source

My question is to the Minister representing the Minister for Climate Change and Energy, Senator Wong. Your colleague Minister Bowen has repeatedly claimed Labor's family car tax is based on the American model. Last week the Biden administration responded to legitimate industry concerns about its version of the fuel efficiency standards by significantly delaying implementation time lines and reducing the level of emissions reduction. This was done, according to reports, to support consumer choice in the United States and to avoid expensive price hikes for household. Given the Albanese government's proposed family car tax sets a much more aggressive rate of emissions than was previously allowed in America, will the government follow President Biden's lead and listen to the legitimate concerns about its fuel efficiency model?

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | | Hansard source

I thank Senator Cadell for the question and for his interest in this area, and I hope that his new-found enthusiasm for the Biden administration might extend to a renewed commitment to renewables, to a belief in climate change actually being something that we need to respond to and deal with, to a belief that an energy transition matters. There are a whole range of things that this administration is engaging in that your party room refused to engage in, refused to do, refused to support. In fact, for nearly a decade in government it ensured that there was no policy reform, no energy policy and no progress when it came to these issues, all because some people over there didn't believe that climate change was a thing.

Photo of Murray WattMurray Watt (Queensland, Australian Labor Party, Minister for Agriculture, Fisheries and Forestry) Share this | | Hansard source

They still don't.

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | | Hansard source

They still don't. But I do thank him for his question about the vehicle emissions standards. I would note that the vehicle efficiency standards response from those opposite appears to be an argument that people shouldn't be able to buy cars that might cost them less to run in terms of fuel. That seems to be the approach from those opposite: 'Let's make sure we require Australians to purchase vehicles that the rest of the world doesn't want to buy and that will cost them more to run because they'll have to use more fuel.' That appears to be the policy proposition from those opposite. They vote against energy caps and price assistance as well. In answer to the question, Senator Cadell, we are very aware of the Biden administration's policy in this area. That, along with the consultation, will be examined very closely.

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator Cadell, first supplementary?

2:03 pm

Photo of Ross CadellRoss Cadell (NSW, National Party) Share this | | Hansard source

Under the Biden government's fuel efficiency model there are substantial subsidies in place for American auto manufacturers and subsidies for people to buy EVs. However, Labor's proposed family car tax would require companies producing petrol, diesel and even hybrid vehicles to purchase credits from EV makers. Is the government aware of any modelling on the cost of subsidies that will be paid to the growing number of Chinese EV makers and Tesla as a result of the proposed car tax?

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | | Hansard source

Is it ours or theirs? I am unclear. I apologise, Senator Cadell, if I have misunderstood your question, but—

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator Henderson, I have called the Senate to order, and you have completely ignored that direction.

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | | Hansard source

Senator Cadell, I'm unclear whether the last part of your question actually related to what the Biden administration was doing in relation to subsidies and the like. If so, that's a somewhat odd question to ask, because we wouldn't necessarily model what happens in the US market, but I'm happy to make this point more generally: of course we are aware of what has occurred in the United States and what has occurred in other international markets.

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Minister Wong, please resume your seat. Senator Cadell?

Photo of Ross CadellRoss Cadell (NSW, National Party) Share this | | Hansard source

I believe the question was about the energy car tax in Australia at the end.

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

It was, but it also went to what the Biden administration were doing, Senator Cadell.

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | | Hansard source

I would say that the government has had a consultation process. The government will consider the feedback from the industry and others when we finalise the standards. Of course, as one aspect of that, I'm sure that the ministers will look at what has occurred in relevant international markets, which, as you know, Senator, we do now lag. (Time expired)

Photo of Sue LinesSue Lines (President) Share this | | Hansard source

Senator Cadell, second supplementary?

2:05 pm

Photo of Ross CadellRoss Cadell (NSW, National Party) Share this | | Hansard source

Given we are in the middle of a cost-of-living crisis, why should Australian families have to pay more for the cars that they want and need, like the Ford Ranger and the Toyota Hilux, to help fund subsidies for Tesla and Chinese EV auto owners?

Photo of Penny WongPenny Wong (SA, Australian Labor Party, Minister for Foreign Affairs) Share this | | Hansard source

Perhaps the question is, why shouldn't Australians be able to buy cars that save them money? What about having some choice? I'm always interested by the fact that the coalition love markets when it suits them. They don't want to regulate wages, but they are quite happy to push back on choice where they have an ideological bent against a particular market regulation. This is about choice. This is about giving Australians the opportunity to buy cars that save them money. We are behind so much of the developed world on this. We've gone through a proper consultation process. I'm sure the ministers will consider all of the consultation carefully as well as looking at the international regulators.