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Tuesday, 20 March 2012
Page: 3502

Mining

Dr LEIGH (Fraser) (15:06): My question is to the Minister for Trade and Competitiveness. Will the minister advise the House what the impact of the government's plan to cut the company tax rate will be on the competitiveness of Australian business?

Mr Pyne: On a point of order, Mr Speaker, I note that you have ruled out the question from the member for Stirling. I ask for the purposes of elucidation for future questions, which part of the member's question contained argument? Which phrase was 'argument'?

The SPEAKER: I do not have to explain a decision I make in that respect but if the honourable member wants to come and see me, as he regularly does, he is welcome to do so.

Mr Albanese: Mr Speaker, I also have a point of order. The member for North Sydney may not have heard your ruling asking him to leave the chamber for one hour.

The SPEAKER: Is he still here?

The member for North Sydney then left the chamber.

The SPEAKER: On his way out, the honourable member said, 'Larger than life, Mr Speaker' and I could not disagree. The chair is indebted to you for your assistance. The member for Fraser will resume his seat.

Mr Pyne: Mr Speaker, on a point of order, I am more than happy to come and see you about this matter and discuss it in more detail but I think the entire House needs to know how a question that says, 'Will the minister immediately reinstate the $60 million cut to the Customs budget that has contributed to illegal weapons being smuggled across our borders?' contains any argument.

The SPEAKER: If you look at the words 'has contributed to' that is where the argument is. But feel free to come and see me. The honourable member for Fraser is given the call.

Dr LEIGH: Would it assist the House if I began the question again, Mr Speaker?

Honourable members interjecting—

The SPEAKER: Now that we have been able to admire the honourable member's splendid attire, he will recommence his question.

Mr Jenkins: It's my tie!

Dr LEIGH: I am indebted to your predecessor in this regard, Mr Speaker. My question is to the Minister for Trade and Competitiveness. Will the minister advise the House what impact the government's plan to cut the company tax rate would have on the competitiveness of Australian businesses? What would be the consequence of blocking this measure or in fact of increasing the company tax rate?

Mr Pyne: Mr Speaker, I have a point of order. The question was hypothetical and therefore should be ruled out of order.

The SPEAKER: Order! I will listen to the honourable member ask the question again.

Honourable members interjecting—

The SPEAKER: And the honourable member will be heard in total silence.

Dr LEIGH: Will the minister advise the House what impact the government's plan to cut the company tax rate would have on the competitiveness of Australian businesses? What would be the consequence of blocking this measure or in fact increasing the company tax rate?

The SPEAKER: The question is in order. I call the honourable the minister.

Dr EMERSON (Rankin—Minister for Trade and Competitiveness) (15:11): Thank goodness for that. The whole purpose of implementing the minerals resource rent tax is to finance a small business tax break, a company tax rate reduction, investment in infrastructure and boosting the superannuation of 8.4 million working people. The member for Fraser asks the question: What is the impact on competitiveness of introducing the MRRT in order to cut the company tax rate? The purpose of it is to ensure that those businesses that are not in the mining industry fast lane can be as competitive as possible. In order to make them competitive, to support their desire to be competitive, we need to, where we can, implement a competitive company income tax rate to increase the possibility of retained earnings because, out of those retained earnings, you can then get the productive investment that they are seeking to improve their overall competitiveness. This is true for all incorporated entities in Australia.

The member for Goldstein asked a question today about the impact of this measure on small businesses. And the truth is he is clueless. We have a small business tax break that applies to each and every small business in this country—2.7 million small businesses employing almost five million people—which has the same purpose, to encourage investment in productivity-increasing activities. That is the whole purpose of the MRRT—to increase the competitiveness of these businesses.

On this issue of supporting company tax reform, the former member for Higgins said, 'We would welcome the bipartisan support of the opposition if it could rise to the challenge of supporting national interest reform.' They are true words; they should be supported. The fact is that this Leader of the Opposition wants to increase taxes. He wants to increase the company tax rate, thwart these tax cut reductions for small business and for all business. I say to the Leader of the Opposition: What is wrong with you? You are not even good at being Liberal.

Ms Gillard: I ask that further questions be placed on the Notice Paper.