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Wednesday, 23 November 2011
Page: 9360

Carbon Pricing

Senator EDWARDS (South Australia) (14:12): Mr President, my question is to the Minister representing the Minister for Climate Change and Energy Efficiency, Senator Wong. I refer the minister to findings in the Essential Services Commission of South Australia's annual performance report, which should be very close to her heart, that the average household electricity bill in South Australia is now $1,680. By how much will this rise as a direct result of the government's carbon tax?

Senator WONG (South Australia—Minister for Finance and Deregulation) (14:12): I am surprised that a South Australian Liberal is asking a question about electricity. There is a long history in relation to South Australian electricity privatisation, which we can have a discussion about. But I am asked about this report, which of course references rises which are nothing to do with a carbon price—let us emphasise that. We have been upfront about the impact on electricity prices. We have been very clear with the Australian people. There will be price impacts as a result of Australia paying for the pollution we put into the atmosphere. The reason for that is, if you continue to allow people, companies in particular, to pollute without charge, then we will simply ensure that our pollution grows. We have made it clear and released modelling which said that electricity prices are likely to rise by on average $3.30 per week, around 10 per cent. We have also released the very extensive assistance package, which not all Australians will be eligible for but all Aust­ralians are able to access that information. It includes measures such as an increase to the pension, an increase to the disability support pension, an increase to family tax benefit, an increase to the carer payment and, import­antly, a tax package which will encourage participation and give every Australian earning under $80,000—

Senator Edwards: Mr President, a point of order: I asked a direct question. By how much will the $1,680 of an average household electricity bill in South Australia now rise as a direct result of the government's carbon tax?

Senator Chris Evans: Mr President, on the point of order: I do not know why the Liberal Party persists with these spurious points of order. Senator Wong was directly answering the question. She provided information in response to the senator's question from the first sentence she uttered. She is providing comprehensive information about the compensation package for any increase in electricity prices driven by the introduction of a carbon price. The question has been directly answered. As I say, I do not know why the Liberal Party insists on taking spurious points of order but I would urge you to rule that there is no point of order.

The PRESIDENT: There is no point of order. The minister is answering the question and she has 18 seconds remaining if she has further material.

Senator Ian Macdonald: Mr President, I also wanted to speak on that point of order but you have already ruled. As Senator Evans said, she has answered the question and if she has answered the question she cannot now be answering it if she is talking about something else, so she should be sat down.

The PRESIDENT: That is not a point of order. I have ruled that there is no point of order and if the minister has anything further to add to her answer she has 18 seconds remaining.

Senator WONG: It is interesting that in my first couple of sentences I answered precisely about the estimate of the increase for electricity that we have put out. Those over there do not want to hear about the extensive assistance package—they do not want to hear it and so they put up spurious points of order. (Time expired)

Senator EDWARDS (South Australia) (14:16): Mr President, I ask a supplementary question. Is it not true that South Australians can expect a rise of at least $160 in their electricity bills that is directly attributable to the carbon tax? How many more South Australians will face stress paying their electricity bills as a result of this significant increase?

Senator WONG (South Australia—Minister for Finance and Deregulation) (14:17): As I have previously said on many occasions, the government has been upfront in saying that we expect on average a 10 per cent increase in electricity prices—about $3.30 a week. The government is providing very substantial assistance through the tax system, through the family tax benefit system, through pensions and through other assistance to reflect cost increases, including increases in the cost of electricity. It is also true that experts in the electricity sector have made the very important point that one of the things that will lead to greater increases in electricity costs is the opposition demanding that people not buy forward contracts, not hedge their prices, and trying to invoke uncertainty. I refer the opposition to comments for example from the Energy Supply Association, which said that uncertainty such as this is one of the things which lead to increases. (Time expired)

Senator EDWARDS (South Australia) (14:18): Mr President, I have a further supplementary question. With ESCOSA data showing residential electricity disconn­ections in South Australia increasing from 4,748 to 7,311 last year, is it not the case that many Australian households and small businesses are already facing stress paying their electricity bills? Regardless of the so-called compensation, will a significant spike in electricity bills not make this stress worse and risk even higher levels of disconnection?

Senator WONG (South Australia—Minister for Finance and Deregulation) (14:19): I am asked about disconnections and I would say that if the senator cared about not pushing up prices on electricity he would not engage, with his party, in the sort of barracking for uncertainty that is the Liberal Party's position. I would also make the point in respect of people's ability to pay electricity bills that we on this side of the chamber will be putting forward increases to pensions, increases to family tax benefits and tax cuts for everybody earning under $80,000 a year—all of which are opposed by those opposite. If the senator cares about low-income Australians, why is he supporting a reduction in the pension, why is he supporting a reduction in the disability support pension and why is he supporting an increase in personal income tax for low-income Australians? (Time expired)