Clive Palmer and Tony Abbott reach deal to repeal carbon tax within weeks; Palmer and Al Gore reveal carbon tax plan yesterday
THE carbon tax will be dumped within weeks following a meeting between Clive Palmer and Prime Minister Tony Abbott this morning in which the renegade MP confirmed that he would back the repeal of the tax.
THE carbon tax will be dumped within weeks following a meeting between Clive Palmer and Prime Minister Tony Abbott this morning in which the renegade MP confirmed that he would back the repeal of the tax with only one condition — ensuring the savings were passed on to consumers.
Mr Palmer’s alternative climate change plan — an emissions trading scheme with a $0 value until the world acts — would not be attached to any amendments to the repeal bill.
It is unclear whether his demands that the Renewable Energy Target and the Clean Energy Finance Corporation will be included as amendments.
However, Government sources said they were confident following this morning’s meeting that the carbon tax would be scrapped as soon as it goes back to the Senate for a final vote — which is likely to occur in the next sitting week scheduled for the first week of July.
Mr Palmer conceded this morning in a press conference that Australia could end up with no other climate change policy other than a renewable energy target and the Clean Energy Finance Corporation – with the likelihood that there will be no carbon tax, no ETS and the possibility that Tony Abbott’s $5 billion direct action plan could also be blocked.
The carbon tax repeal bill will be voted in the house of representatives today before the bill is flicked off to a Senate committee to report back on July 7 for a final vote in the upper house.
It is likely the Government will support Mr Palmer’s amendment in the Senate to enshrine in law, the passing on to consumers by energy companies, the total savings of scrapping the carbon tax.
The meeting with Mr Abbott followed Mr Palmer yesterday pulling off the political masterstroke of the year, convincing the climate change lobby’s spiritual leader, former US vice- president Al Gore, to back the abolition of the carbon tax and replace it with a new scheme valued at $0.
But the eccentric mining magnate and leader of the Palmer United Party still stood accused of breaking a key election policy to dump the tax by claiming he would now refuse to back its abolition unless the Abbott government replaced it with an emissions trading scheme.
The Queensland independent last night announced a change of heart on his promise to dump the carbon tax, claiming his Senators, who hold the balance of power, would push an amendment in the Senate today for an ETS with a carbon price of $0.
That price would remain at $0, effectively letting polluters off the hook, until Australia’s major trading partners, including the US, China, Korea, Japan and Europe adopted an ETS as well.
He also demanded the government keep the $10 billion Clean Energy Finance Corporation and the Renewable Energy Target.
EDITORIAL: Politics just got a whole lot weirder
In what will appear as a middle road approach to the vexed issue of climate change which neither of the major parties had considered, Mr Palmer managed to garner the support of all sides of the political debate, even receiving the backing of the business community.
“It’s not the Labor way, or the Liberal way but the right way that is important for Australia and the world. Australia acting alone cannot change the world, and change the world we must … for all the children of the world,’’ Mr Palmer said.
He finished by claiming “direct action is a waste of money”.
The government welcomed the news Mr Palmer would support the abolition of the tax but refused to acknowledge it was conditional on it being replaced with an ETS.
Environment Minister Greg Hunt said an ETS was not Coalition policy but left the door open to negotiation by claiming the government would wait to see the amendment.
The Greens also welcomed Mr Palmer’s pledge to save two renewable energy agencies from the axe.
The Business Council of Australia praised the policy, claiming it would mean a drop in the cost of business.
Labor’s position remained unclear. Opposition leader Bill Shorten said: “Labor has already voted to abolish the carbon tax in the Senate and replace it with an emissions trading scheme — and we’ll do so again tomorrow.”
Mr Gore made a surprise appearance late yesterday at a Parliament House press conference with Mr Palmer, where he tepidly backed the big miner’s plan to dump a tax he had once supported.
“While I will be disappointed if the immediate price on carbon is removed — because it is a policy which is ultimately critical to solving the climate crisis — I am hopeful Australia will continue to play a global leadership role on this most pressing issue, “ Mr Gore said.
Australian Greens leader Christine Milne cautiously welcomed the lifeline thrown to the climate agencies, but said she’d seek more detail from Mr Palmer.
“The whole country tonight will be shaking its head saying ‘what does this actually mean?’ and it would have been good to get some clarity,” she told reporters in Canberra.
Independent senator Nick Xenophon, who also holds influential voting rights in the upper house, said he would support scrapping the carbon tax if there was an ETS framework in place.
WHAT CLIVE PALMER WILL SUPPORT
* The government’s policy to repeal of the carbon tax
WHAT HE WANTS IN RETURN
* A guarantee that all energy producers are required by law to pass on the savings from the carbon tax to consumers.
* An emissions trading scheme, which will only take effect once Australia’s main trading partners like the US, China and Japan establish similar mechanisms.
WHAT HE WON’T SUPPORT
* The government’s $2.55 billion direct action plan on climate change (”A waste of money”, Mr Palmer said).
* Any changes to the renewable energy target before 2016
* The abolition of the Climate Change Authority and Clean Energy Finance Corporation
SOURCE: Press release from Palmer United Party leader Clive Palmer.
EARLIER
Much of the reaction to the Palmer/Gore pair up has been incredulous.
Al Gore and Clive Palmer are about to do a joint news conference. Or have I just taken crazy pills.
— Leon Ford (@LeonLeonFord) June 25, 2014 Sub-type: comment CAPTION: Al Gore and Clive Palmer are about to do a joint news conference. Or have I just taken crazy pills.— Leon Ford (@LeonLeonFord) June 25, 2014
BREAKING: There has been a misprint. Clive Palmer will be joined in the Great Hall by Weird Al Yankovich.
— Viewpoint/FridayLive (@chriskkenny) June 25, 2014 Sub-type: comment CAPTION: BREAKING: There has been a misprint. Clive Palmer will be joined in the Great Hall by Weird Al Yankovich.— Viewpoint/FridayLive (@chriskkenny) June 25, 2014
Upcoming Gore/Palmer presser is giving me nerves like the Oberyn Martell/Gregor Clegane fight from GoT #auspol
— James D Bramwell (@JDBramwell) June 25, 2014 Sub-type: comment CAPTION: Upcoming Gore/Palmer presser is giving me nerves like the Oberyn Martell/Gregor Clegane fight from Got #auspol— James D Bramwell (@JDBramwell) June 25, 2014
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