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Wednesday, 15 February 2012
Page: 1394

Carbon Pricing

Mr TRUSS (Wide Bay—Leader of The Nationals) (14:14): My question is to the Prime Minister. I refer the Prime Minister to Qantas's statement that the carbon tax will cost it more than $110 million next financial year alone, more than doubling Qantas's tax bill. Given that both the United States and China have opposed carbon pricing on their national airlines, isn't the government's carbon tax only going to further disadvantage our national airline and put greater pressure on Australian jobs?

Ms GILLARD (Lalor—Prime Minister) (14:15): In answer to the Leader of the National Party, let us just go through the facts, because whenever you go through the facts the opposition's scare campaign falls apart. Fact No. 1: Qantas will not face any carbon price on their international operations in Australia. They will face a carbon price on their domestic operations, that is true. The carbon price will have a very moderate impact on ticket prices. Both Qantas and Virgin put it at around $3 to $3.50 per seat per sector. That is what Qantas and Virgin actually have said. Of course, those price effects have been modelled into the anticipated increase of 0.7 per cent in CPI and, of course, Australians are receiving assistance: tax cuts, family payment increases and pension increases. There are tax cuts for people earning less than $80,000, with many of them to receive a tax cut of around $300. There will be family payment increases for many families caring for children. There will be pension increases that will more than compensate people for the anticipated price effect. This means that there will be households around Australia that come out better off.

The fear for those households is twofold: the Leader of the Opposition's plan to rip out of their hands the tax cuts, family payments and pension increases—

The SPEAKER: Order! The Prime Minister will return to the substance of the question, which related to Qantas.

Ms GILLARD: Yes, Mr Speaker, I will deal with that. But, number one, I do think it is important to talk about the rip-off that will happen for working families. Then, on price effects for things like Qantas, let us not forget that the opposition is committed to a costly, shambolic plan that will cost Australians far more. So, to the Leader of the National Party's question, once again what the opposition is trying to do is mislead the Australian people.