Clive Palmer puts conditions on backing repeal of the carbon tax

CLIVE Palmer stood with the world’s most prominent climate activist as he delivered a death blow to Julia Gillard’s world-leading carbon price.

CLIVE Palmer has roped in the world’s most prominent climate activist, Al Gore, to stand beside him as he announced the abolition of Julia Gillard’s world-leading carbon price.

The former US vice-president, joining Mr Palmer in Parliament House’s Great Hall, this evening congratulated the Fairfax MP’s “outstanding statement” that Labor’s carbon tax would be replaced by “zero” carbon price.

Mr Palmer, who owns substantial coal interests and a north Queensland nickel refinery, said his senators would vote to retain the Clean Energy Finance Corporation, Climate Change Authority and the Renewable Energy Target.

Mr Palmer’s announcement makes the repeal of Labor’s carbon tax almost certain, given the Coalition will need only three further crossbench votes to repeal the scheme.

Mr Palmer said he would insist on an amendment legally requiring companies “to pass on all consumers of energy the savings they will enjoy from the repeal of the carbon tax”.

They will also press for a new emissions trading scheme that would “only become effective once Australia’s main trading partners also take action to establish such a scheme”.

“This is designed to establish and encourage a fair global scheme quickly. So this measure cannot be defined as a financial measure, this scheme will have a carbon price zero rated,” he said.

Environment Minister Greg Hunt said Mr Palmer’s decision to support the carbon tax repeal would deliver an average $550 benefit to households.

“What we have seen today is vindication for the government because our plan to deliver families genuine savings by abolishing a policy which is fundamentally failing is set to be passed by the Senate.

“This is unambiguously good news for Australian families.”

Mr Hunt said emissions trading was “not our policy” although the government would consider the amendments.

Mr Gore, who is in Australia to lecture his fellow environmentalists, congratulated Mr Palmer, although he was “disappointed” that the world-leading carbon tax would be repealed.

“While I will be disappointed if the immediate price on carbon is removed – because it is a policy which I believe to be ultimately critical to solving the climate crisis – I am extremely hopeful that Australia will continue to play a global leadership role on this most pressing issue,” Mr Gore said.

“Mr Palmer and I don’t agree on everything, but I’m very encouraged by his willingness, and that of his party, to preserve many of the climate policies in Australia.

“I congratulate him and his party on this outstanding statement you’ve just heard.”

Mr Gore said Australia’s trading partners were moving to address climate change, citing “pilot” emissions trading schemes in China, new clean air regulations in the United States, and India’s renewed push on solar energy.

A federal opposition spokesman said: “Climate change is a serious issue that demands a serious and effective response, not a stunt.”

“The ball is in Tony Abbott’s court – he’s the Prime Minister and it’s his responsibility to tell Australians whether he intends on doing a deal with Clive Palmer.

“Labor has already voted to abolish the carbon tax in the Senate and replace it with a emissions trading scheme – and we’ll do so again tomorrow.

“Doing nothing on climate change isn’t an option – the Prime Minister needs to understand that.”

Greens leader Christine Milne congratulated Mr Palmer’s support for the renewable energy, but questioned his “extremely vague” support for emissions trading.

“When it comes to pricing pollution, Mr Palmer appears to be having it both ways. The fact is, we already have an emissions trading scheme,” she said of the carbon tax, which is legislated to transform into an ETS next year.

“A cynical interpretation would be that Mr Palmer is wanting to push out any effective action until after the next election, because the Abbott government will not act to strengthen any scheme like Mr Palmer’s proposal would require.”