Federal Government’s Direct Action climate policy deal struck with Palmer United Party

FEDERAL government’s $2.55 billion Direct Action climate policy will pass the Senate after a deal is struck with the Palmer United Party.

THE federal government has clinched a deal with crossbench senators to pass its $2.55 billion Direct Action climate plan.

But in doing a deal with the Palmer United Party it won’t deliver on its election promise to abolish the Climate Change Authority and has agreed to the CCA conducting an 18-month investigation into an emissions trading scheme.

Environment Minister Greg Hunt said that despite allowing the investigation, the government remained opposed to a carbon tax.

DIRECT ACTION: Clive Palmer offers hope of deal

All smiles ... PUP leader Clive Palmer with Environment Minister Greg Hunt after their major climate policy deal was struck at Parliament House in Canberra. Picture: Gary Ramage.

Mr Hunt accepted that the coalition was not going to get its emissions reduction fund through the Senate without being “flexible”.

The retention of the CCA was a “gesture of virtue”, he said. “I don’t think there is anything other than the ability to look at this and say the government said it would do two big things - abolish the carbon tax, pass the emissions reduction fund,” Mr Hunt said.

“None of these things come without negotiations.”

PUP leader Clive Palmer said he believed an internationally-linked ETS was a good idea.

“I’m very confident in the minister taking the stand and supporting at least looking at the prospect of an ETS,” Mr Palmer said.

Mr Palmer, who previously described the government’s policy as a waste of money which would achieve nothing, said he now saw a “lot of positive initiatives” in the Direct Action policy.

PUP’s amendments, which also included involving more indigenous projects in the fund, would make the scheme “better and stronger”, he said.

Mr Hunt said the government would achieve its emission reduction target of five per cent by 2020.

The laws will pass with the support of four PUP-aligned senators as well as independents Nick Xenophon and John Madigan.

The government has accepted four of Senator Xenophon’s amendments.

Authority chairman Bernie Fraser said he hoped the agreement was the start of an “emerging broader political consensus” on climate change and the need to take effective action.

It was important that the authority, which had a charter to be independent and to provide balanced advice, was a proper way of establishing the basics, the benefits and costs of some of the major and potentially important schemes, he said.