I am here to formally release the Coalition’s plan to abolish the carbon tax. The only way to abolish the carbon tax, it’s now clear, is to change the government but if you do change the government, the carbon tax will be abolished. That is the absolute, categorical commitment that I give to the Australian people and I assure the Australian people that what the Parliament has done the Parliament can undo and undo the carbon tax the Parliament will, should there be a change of government.

 

On day one of the election campaign I will write to the Department of PM&C alerting them to the fact that the carbon tax repeal will be the first priority of an incoming Coalition government. On day one of a new government, I will instruct the public service to begin that process and on day one of a new parliament, the carbon tax repeal legislation will be introduced.

 

So, I give the Australian people my solemn pledged word on this and there is only one candidate for the prime ministership at the next election who will be able to say, and be believed, that ‘there will be no carbon tax under the government I lead’.

 

QUESTION:
 

Mr Abbott, if you say prices will go up under a carbon tax, will they come down? Can you give a guarantee they will come down without a carbon tax?

 

 

Well, I can guarantee that some of the component of prices will come off and the ACCC will have a strong mandate to ensure that prices reflect genuine costs.

 

 

On that first day, your first day in office, on that first day will you also be making a phone call to the President of Nauru?

 

 

Well, I certainly will because I am assuming that this government just doesn’t have the heart to put an effective border protection policy in place. I think it’s pretty clear – with all the to-ing and fro-ing that we’ve seen in the Parliament and elsewhere over the last week or so – that this government just doesn’t have its heart in strong border protection policies. It’s too confused, it’s too conflicted and whatever this government says it might do, I don’t believe it will do it very well.

 

Mr Abbott, just in the last ten minutes we’ve had news of another boat, 100 people on board. It’s been intercepted just off Christmas Island. What’s your reaction to the frequency of these boat arrivals? And also, this committee that the Prime Minister is setting up, how seriously will you take its work?

 

 

Well, obviously the border protection crisis just gets deeper and deeper every day. The flow of boats is accelerating, the risks to boat people are increasing, the confusion in the Government’s ranks just gets greater and greater with each passing day. Now, I want to say that I think that the expert committee that the Prime Minister has established comprises people of great distinction. Angus Houston is a fine Australian. Michael L’Estrange is a friend of mine. I’ve worked with Michael L’Estrange. Paris Aristotle is a very well respected refugee advocate, but the Coalition doesn’t need an expert committee to tell us what our policy is, because we have a policy and it’s a policy that we will stick to. It’s a policy that we have had in effect for a decade now. It’s a policy that worked when we were in government. It’s a policy that will work should we win the next election.

 

Mr Abbott, was there a deal with the Greens to back the amendment?

 

 

We went to great lengths to try to find the position that could be supported by crossbench members of the Parliament. Unfortunately, in the end, it wasn’t, but certainly we engaged in good faith discussions with the Greens and others. We really wanted to come up with something that the Parliament could support and I note that the only major party that last week was prepared to go the extra mile, as it were, to try to get legislation through the Parliament was the Coalition.

 

 

Did you actually reach a deal with the Greens yesterday afternoon and they backed out of it?

 

Look, my understanding, and the discussions were through Scott Morrison, through my office and through other Coalition MPs, my understanding is that they were considering our proposal but they never agreed to abandon their opposition to offshore processing.

 

 

Is there any part of that proposal that was different to what was publicly announced? Did you give any more? Was it simply what you announced?

 

 

No. No, look, at all times I was attempting to be absolutely open, upfront and transparent and what we were discussing I announced in at least two press conferences. What we were discussing was canvassed in the Parliament by myself and by Scott Morrison. We don’t do secret deals. Sure, we have discussions in good faith with people but in the end we do what we say we will do and that’s what we wanted to do in the Parliament this week.

 

 

Will you speak to Angus Houston at all or have any sort of input, or with Michael L’Estrange, your friend?

 

 

Look, I’d be surprised if at some stage I don’t talk to them because they’re very distinguished Australians but the point I make is that only the Government needs to subcontract policy out to an expert group because we have a policy, a policy that we have held for a decade at least and a policy that worked when we were in government. We do not need an expert group to tell us what our policy is because we've got one. The only significant leader in this country who has no policy and who now wants a group outside her own ranks to give her a policy is the Prime Minister.

 

 

With that reference group that she’s also going to have of MPs, will you nominate someone from the Coalition?

 

 

Look, we are considering our response to the Prime Minister's letter which only arrived late this morning. I just want to make it crystal clear that we have a policy. It's a policy that worked in the past. It's a policy that I believe will work in the future and as a matter of principle, we don't subcontract our policy out to others. We don't need other people to tell us what our policy is. Sure, we talk to other people. We get the best possible advice when we shape our policy, but our policy is in place.

 

 

Mr Abbott, Greg Combet this morning has announced a $40 million bailout to Alcoa. Given that it is your intention should you take office to get rid of the carbon tax, would you wind back that bailout to Alcoa?

 

 

Well, if you don't have the carbon tax you don't need the compensation but while the carbon tax is in place, the compensation will be in place. Now, I know both Minister Combet and the company, for understandable reasons, want to pretend that this isn't carbon tax compensation but the key point is that the quantum of the bailout is the estimated quantum of their smelters’ carbon tax liability. So, I think the Australian public well and truly understand why this bailout has been offered at this time because the last thing a failing government wants is a major industrial shutdown on the eve of the carbon tax.

 

 

Do you support it nonetheless or is this more industry assistance that’s not needed?

 

TONY ABBOTT:

 

We are not going to oppose it and while the carbon tax is in place, measures to alleviate the impact of the carbon tax will also be in place.

 

 

So, when you get rid of the carbon tax, this goes?

 

 

Well, the point I am making is that if you don't have the carbon tax, you don't need compensation as a point of principle.

 

 

Mr Abbott, did you tell a party room meeting earlier this week that asylum seekers wouldn’t be on the agenda?

 

No.

 

 

Mr Abbott, on the carbon tax, would you consider suspending funding to clean energy projects during the caretaker period?

 

 

Well, our view always is that we honour contracts to the extent that they can't be renegotiated. But as soon as the election is called, amongst other things we'll be writing to the department of Prime Minister and Cabinet asking that further payments be suspended and that further contract negotiations not go ahead.

 

 

Mr Abbott, did you know about Mr Wilkie’s plan last night and do you think that you should have kept your MPs back to vote on Mr Morrison’s amendment?

 

 

I wasn't aware that Andrew Wilkie was proposing late last night or early this morning to come into the Parliament and support the Morrison bill, but nevertheless the fact that Andrew Wilkie was prepared to support that bill and the fact that it was carried – not by an absolute majority, but by a majority in the Parliament – suggests that Andrew Wilkie at least has accepted that there is only one bit of legislation that can carry the Parliament and that's the Coalition's legislation and the whole point I've been making over the last few days is that our legislation embodies what is common ground between the ALP and the Coalition. We support offshore processing and the only way that a measure to validate offshore processing can get through the Parliament is if it embodies the common ground between the parties. Now the ALP is not opposed to offshore processing at Nauru and PNG. In fact, it says it supports it. So, let’s support the measure that allows it.

 

 

If Angus Houston, Michael L’Estrange and Paris Aristotle come up with a finding that the Department has found as well that that won’t be a deterrent, will that sway you at all?

 

 

Well, as I said, we’ve got a clear policy and our policy reflects our judgements of values as well as our judgement of fact and our judgement of value is that it's not appropriate to send people who have arrived illegally by sea on Australian shores or to Australian territory. It's not appropriate to send them to countries that haven't signed the UN convention.

 

 

What is the value of sending them anywhere that’s not going to be a deterrent?

 

 

Well, I believe it is a deterrent. It was a deterrent in the past. I think it will be a deterrent in the future. The Government likes to mythologise that everyone who went to PNG and Nauru ended up in Australia but that is absolutely false. That's another one of the lies which sadly the Government so often tells in this matter. Over 50 per cent of the people who went to Nauru ended up somewhere other than Australia.

 

 

Given then commentary in this morning’s papers about the delay, the Parliament hasn’t been able to reach a resolution, are you at least embarrassed or ashamed that nobody has been able to; that we’re no closer to a resolution?

 

 

Lane, I can understand people's frustration. I really can understand people's frustration but we haven't had a failure of Opposition policy here. We've had a failure of Government policy. It’s not the Opposition which has failed to do its job. It's the Government which has failed to do its job. That's why the Australian public are rapidly coming to the conclusion that the only way to stop the boats is in fact to change the government.

 

 

Mr Abbott, I want to just take you back to something that you said before, the first day of the election campaign, it goes into caretaker mode, you’re going to write to PM&C and ask that further payments be suspended. Can you be clear for us what your [inaudible]?

 

 

As I said, I want to make it crystal clear that we will honour contracts but payments that are not contractual, new contractual negotiations shouldn't take place.

 

 

Does that include compensation payments in the various forms of household and other arrangements that the Government has put into place?

 

 

Well, what we've said all along is that there will be tax cuts without a carbon tax. There will be benefits for pensioners without a carbon tax. The precise quantum that will continue under the Coalition will be revealed nearer the election.

 

Are you confident that you will be able to repeal every aspect of the carbon tax? You did tell the miners a few weeks ago that it may be difficult to wind back some aspects of it.

 

 

Well, I understand that the economics of finding sufficient savings to pay tax cuts without a carbon tax and to give benefits to pensioners without a carbon tax are difficult. I understand that the fiscal challenge is significant. I understand that. But I give the Australian public my assurance that we are up to it; that we can meet the challenge of finding sufficient savings from wasteful and unnecessary government programmes, to have tax cuts without a carbon tax and pension increases without a carbon tax.

 

 

Hugh’s question, though, during the caretaker period exactly what should stop being paid? Tax cuts in particular?

 

 

Hugh’s question referred to payments under the Clean Energy Finance Corporation. Now, payments that have been contracted obviously will continue, but no uncontracted payments should be made, no further contracts should be concluded and no additional contractual negotiations should be undertaken.

 

 

Mr Abbott what’s your view on Origin Energy being accused of price gouging?

 

 

Well, look, I’m not aware of the accusation, but the point I make is that the whole purpose of a carbon tax is to make the burning of coal and the burning of gas much more expensive. I mean, the whole point of a carbon tax is to make using coal and using gas more expensive. It's to raise the price of electricity. If the carbon tax doesn't raise the price of electricity it isn’t doing its job. So, no one should be surprised when the price of electricity goes up and up and up because that's because the whole point of it. That’s the whole point of it. The Government is trying to have both ways. On the one hand, we're going to reduce emissions by limiting and ultimately eliminating the use of coal and gas but on the other hand, no prices are going to increase and that’s the utter illogic at the heart of the Government’s position.

 

[ends]