Isra-Mart srl: Julia Gillard defends tough gas cop

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JULIA Gillard has launched a passionate defence of the government's planned regulatory regime for the carbon tax, saying she makes "no apology for having tough powers to stop any rip-offs".

After The Australian reported yesterday that the Clean Energy Regulator would be given sweeping powers to enter company premises, compel people to give self-incriminating evidence and copy sensitive records, Tony Abbott attacked it as "draconian".

The Prime Minister defended the regime. "I don't want to see Australian families ripped off and so we will have a tough cop on the beat, with tough powers to go after any businesses that are thinking of ripping people off," Ms Gillard said.

Fraud or attempts to thwart the scheme can be punished by up to 10 years in jail or fines of up to $1.1 million for corporations.

Ms Gillard went on the offensive as government sources suggested the Opposition Leader's attack on Labor's planned regulatory regime contradicted his arguments two weeks ago that a "dependable carbon cop" was needed to ensure the integrity of emissions permits bought overseas.

Mr Abbott also said during the same July 1 address that the emissions trading system "would require the most intensive third-party policing because it wouldn't automatically be policed by parties to the trade. And without such policing, an emissions trading scheme could offer the appearance of achieving lowest-cost abatement without much actual abatement occurring at all."

Mr Abbott told the Nine Network yesterday if there was no carbon tax "you don't need the carbon cop.

"I mean, this is a draconian new policy force chasing an invisible, odourless, weightless, tasteless substance."

Ms Gillard said it was "remarkable" that Mr Abbott would criticise powers "to make sure Australian families don't get ripped off".

"The penalties are absolutely right, no one should do the wrong thing and if people do the wrong thing then they should feel the full force of the law, including high fines and penalties, that's appropriate if people try any rip-offs," she said.

The political row flared as Mr Abbott was again forced to play down any tensions on climate change between him and former Liberal leader Malcolm Turnbull.

Asked on Sky News on Thursday night whether putting a price on carbon was better than the Coalition's direct action policy, Mr Turnbull had said that direct action was the Coalition's policy.

But Mr Abbott said Mr Turnbull "very well understands the Coalition's direct action policy and he supports it because that's a condition of being in the shadow cabinet".

Mr Abbott said it was not Mr Turnbull's job to talk about a "whole range of policies, it's his job to talk about communications policy, he's doing a very good job".

But late yesterday Mr Turnbull insisted he was "beyond gagging" and would continue to speak on matters outside his portfolio.