Senator IAN MACDONALD (Queensland) (14:15): I take it that the minister's answer to ratepayers in Townsville, who will be paying more following the carbon tax, is 'tough'. The PRESIDENT: Just the question. Senator IAN MACDONALD: Mr President, I ask a supplementary question. Minister, is it true that there is no direct compensation to local authorities for increases in costs flowing from the carbon tax? Will the government take over the many essential services that the Townsville City Council and other councils are providing in Queensland, which they will have to cut if they do not increase their rates?