Isra-Mart srl: Carbon tax rift emerges between Labor, Greens

www.isra-mart.com

Isra-Mart news:

A meeting today between the Government and the Greens on climate change has broken up quickly amid reports of serious disagreement between the two parties.

It is understood the Greens are unhappy with the Government's preferred deal on industry compensation, including substantial assistance to coal miners.

Other sticking points include compensation to coal-fired electricity generators and the emissions target when the carbon tax moves to an emissions trading scheme.

An informed source has told ABC News Online "the temperature of the negotiations has been pretty high lately".

The source said the Government appeared unwilling to budge from its position.

Neither side is willing to comment publicly, but Greens leader Bob Brown issued a terse statement saying he and his deputy Christine Milne met Prime Minister Julia Gillard, Treasurer Wayne Swan and Climate Change Minister Greg Combet.

Senator Brown said more discussions are expected on the weekend, however a spokesman for the Prime Minister would not confirm that.

The two independent members of the multi-party committee, Tony Windsor and Rob Oakeshott, have returned to their electorates and may be unavailable for quickly convened weekend talks.

Mr Combet reaffirmed the Government's support for industry assistance, saying it was determined to ensure "strong protection and support for jobs" during the transition to clean energy.

"As a Labor Government we will always push hard to support jobs and families, as was the Government's approach during the global financial crisis, and this will always be a key focus for us in any public policy deliberations," Mr Combet said in a statement.

And he emphasised the need for "least cost for the economy and households" by ensuring alternative technologies are cost neutral.

A Productivity Commission report has branded support for alternative technologies as inefficient, but the Greens have insisted money from the carbon tax be invested in alternatives.

"We want to ensure we cut pollution and invest in new clean energy sources at the least cost to our economy, business and households," Mr Combet said.

Meanwhile, Mr Windsor has renewed his attack on the Government's planned $12 million carbon price advertising campaign, describing it as "presumptuous".

But he said the campaign will not affect the way he deals with the issue in the multi-party committee, nor will he withdraw his support from the minority Labor government.

He says the advertising campaign is predicated on a carbon price outcome from the committee that is "not necessarily correct".

"That process hasn't ended yet and we're coming down to the pointy end, and I don't think it was possibly the best strategy for the Government to adopt to suddenly announce they are going to be promoting something that doesn't exist," Mr Windsor told ABC News Breakfast.

Disquiet

But Mr Windsor said his disquiet about the campaign will not affect how he deliberates over a carbon tax.

"This is a very substantive issue and needs to be treated at such the two things aren't related, they won't affect the way I'll attack my deliberations today and next week."

Opposition Leader Tony Abbott says "it certainly should be" a problem for the Government.

"Julia Gillard called taxpayer advertising 'an abuse', that's what she said before the election," Mr Abbott told Channel 9.

"Obviously two key independents agree with her pre-election view. Let's hope that if it comes to the Parliament next week, those two independents maintain their rage."

But asked if the $12 million spend pales into comparison to the Howard government's $120 million WorkChoices campaign, Mr Abbott said "two wrongs don't make a right".

The Government wants the multi-party committee to come to an agreed position on climate by the end of the month - but Mr Windsor says that might not happen.

"I don't have a deadline. The Government may have, others may have. I'm interested in getting something that will actually work. If it takes longer, that's not going to worry me but it may worry others."