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Monday, 22 August 2011
Page: 8772

Carbon Pricing

Mr BILLSON (Dunkley) (15:08): My question is to the Prime Minister. Can the Prime Minister explain why, after six weeks, the government has still failed to update the modelling of its carbon tax to reflect the actual starting price of $23 per tonne, a price 15 per cent higher than the $20 per tonne the model uses as its starting price?

Ms GILLARD (Lalor—Prime Minister) (15:09): Member for Dunkley, the modelling that has been produced is reliable and we stand by the Treasury modelling—

Opposition members interjecting—

Ms GILLARD: I know that there have been debates about modelling in recent days, and the—

Opposition members interjecting—

The SPEAKER: Order! The Prime Minister has the call.

Ms GILLARD: I know that there have been some issues about modelling raised in the Victorian newspapers which may have brought this question to the member's mind. What I can say to the member is that the modelling projects that the economy of Victoria will grow by 30 per cent to 2020 alone and by 162 per cent by 2050. These are not some of the results that people have recently seen in their newspapers.

Mr Billson: Mr Speaker, I rise on a point of order. As interesting as that is, the question was about the Prime Minister's modelling and why it is out by 15 per cent and when that is going to be updated.

The SPEAKER: The member for Dunkley will resume his seat. Prime Minister.

Ms GILLARD: The Treasury modelling is accurate in showing the macroeconomic effects of carbon pricing, and I am referring him to those macroeconomic effects. I understand that there have been debates started about modelling, including modelling at a subregional level. Modelling at a subregional level is not reliable, and Treasury makes that point very strongly indeed. So I say to the member for Dunkley, who may, like other members of the Victorian community, have seen some misleading results in their newspapers, that we stand by, and people should rely on, the Treasury modelling.