The Opposition Leader Tony Abbott is drawing increasingly long bows in his misleading scare campaign against a carbon price. This week he even blamed the carbon price, which is yet to be introduced, for disappointing auction results on the reality TV show The Block’s final episode.

Claim 1: “I’m afraid a bad situation is going to get worse if this wretched carbon tax comes in because according to the Housing Industry Association and the Master Builders Association the price of a new house will go up by at least $5,000 under a carbon tax.” (Interview, Radio MTR, 23 August 2011)

Fact 1: The HIA/MBA figure was produced before the carbon price policy was announced. It assumes no industry assistance, which means it significantly exaggerates the impact of a carbon price on housing construction. In fact the Government is providing $9.2 billion of assistance to manufacturers of building materials like steel, cement, aluminium, copper, glass and plastics, shielding these products from 94.5 per cent of the carbon price.

Claim 2: “The power bill here is about $500 a month. That’s going to increase by at least $100 a month under the carbon tax.” (Doorstop, Anchor Wetsuits, Tasmania, 26 August 2011).

Fact 2: Mr Abbott has no basis to claim electricity prices at a small business like Anchor Wetsuits will rise more than 20 per cent. Treasury modelling shows retail electricity prices in Tasmania will rise by 9 per cent under a carbon price. It also shows wetsuit prices would rise by 0.2 per cent, adding 38 cents to the price of an Anchor men’s steamer light wetsuit. The Government will assist households to meet the modest cost impacts expected to be passed on by businesses.

Claim 3: “We aren’t going to stop using steel under a carbon tax, it’s just that it’s much more likely to be imported steel than locally made steel.” (Interview, Radio MTR, 23 August 2011)

Fact 3: Steel manufacturers BlueScope and OneSteel have both said the carbon price will have no impact on their competitiveness. The Government will shield locally made steel from 94.5 per cent of the impact of a carbon price. A $300 million Steel Transformation Plan will provide further assistance to BlueScope and OneSteel to invest and innovate in steel manufacturing operations.

Mr Abbott continues trying to deceive the public with statements he knows are untrue. This is unconscionable conduct, especially in times of economic uncertainty. That is why I will continue issuing these Bulletins to hold the Opposition Leader to account.

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