Isra-Mart srl : Unions recognise need to price carbon, Swan says

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Isra-Mart srl news:

Treasurer Wayne Swan says unions understand the need to price carbon and that it will create jobs in new industries.

Mr Swan's comments came as Opposition Leader Tony Abbott visited steelworks in South Australia to talk up what he said was the damage the carbon tax would do to jobs and industry.

The visit also marked the first anniversary of former prime minister Kevin Rudd's decision to shelve his carbon pollution reduction scheme.

Mr Abbott seized on recent remarks by Australian Workers Union officials that the tax could ''wipe out'' communities such as Whyalla and that union support could be withdrawn if a single job was lost.

The treasurer, who joined the AWU in the 1980s and was part of the cabinet committee developing the emissions trading scheme, said he was not surprised to see union leaders standing up for their members.

''I believe the union leadership understands that we do have to price carbon but, yes, we'll have a vigorous debate about it,'' Mr Swan said.

But, he added, it was essential for the future of the economy.

He said the Government was genuine in its desire to discuss details of the carbon price with industry and unions and provide assistance.

Mr Abbott, who visited OneSteel's Whyalla plant, said industrial towns faced becoming ''a ghost town, an economic wasteland'' if the carbon tax went ahead.

''I challenge the other unions involved in manufacturing to speak up on behalf of their members, to stop making excuses for a bad government and to stand up for the jobs of their members,'' Mr Abbott said.

Mr Abbott said OneSteel executives had told him they did not want a carbon price ''full stop''.

OneSteel spokesman Steve Ashe said the carbon tax was ''a big issue for our Whyalla operation as the largest portion of our emissions come from Whyalla steelmaking''.

The opposition leader said the dumping of the CPRS by Labor 12 months ago and subsequent adoption of a similar scheme by Ms Gillard showed the prime minister could not be trusted.

Mr Rudd said Mr Abbott's criticism of taking effective action on climate change ''stands out as unique in the world''.

The debate came as a new Essential Media poll indicated Labor's main attributes were seen as ''will promise anything to win votes'' (63 per cent), divided (66 per cent) and out of touch with ordinary people (61 per cent).

But the Liberal Party did not fare much better, with 65 per cent of voters saying it would promise anything to win votes and 54 per cent saying the party was ''out of touch with ordinary people''.