Isra-Mart srl : Big business gangs up on Combet over carbon tax

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SOME of Australia's biggest companies have mounted an apparently co-ordinated attack on the Federal Government over the proposed carbon tax.

Representatives from BHP, Rio Tinto, Woodside and BlueScope Steel met ministers yesterday and accused the Government of misleading them during consultation on the tax and turning a deaf ear to their concerns, the Herald understands.

The companies say the Government has decided to base industry compensation for its carbon tax on the multibillion-dollar package offered under the now dumped emissions trading scheme, which they argue does not go far enough.
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One source said the two-hour meeting of the business roundtable on climate change was so dominated by the interjections of Rio, BHP, BlueScope and Woodside that other business heavyweights such as the NAB chief executive, Cameron Clyne, and the Woolworths chief executive, Michael Luscombe, were unable to make significant contributions.

The Climate Change Minister, Greg Combet, told the meeting the Government would use the compensation package as the starting point for negotiations on the carbon tax, and business would need to work within that.

Asked about proposed compensation for coal mines, the Government presented a ''fact sheet'' on the $1.5 billion package under the trading scheme, leading some in the room to believe the deal would be similar under a carbon tax.

On Thursday the BHP chief executive, Marius Kloppers, visited Canberra to dine with other members of the business consultation group. He met Mr Combet separately.

One source said the dinner was a semi-regular affair to discuss tactics, but it was the first time Mr Kloppers had attended. BHP was represented at yesterday's meeting by the head of its Metallurgical Coal division, Hubie van Dalsen.

After the meeting Mr Combet said progress had been made and there was a ''clear way forward'' for discussions on areas of concern such as steel, liquefied natural gas and coal.