Labor MPs fear carbon tax will cost them dear

LABOR members seeking re-election are worried the federal government's proposed carbon tax is bleeding votes from their electorates.

LABOR members seeking re-election are worried the federal government's proposed carbon tax is bleeding votes from their electorates as the Coalition channels anger against the plan to the state campaign.

The Australian revealed yesterday that former NSW premier Nathan Rees had expressed deep concern at Julia Gillard's announcement of the carbon initiative so close to the state election.

NSW Liberal leader Barry O'Farrell has jumped on widespread public dissent over the proposed tax, saying it would cost jobs and push up power prices.

Labor member for Londonderry Allan Shearan, whose electorate borders Penrith and the Hawkesbury region west of Sydney, said: "It's a silly time to make such an announcement."

Having held the normally safe Labor seat for seven years, Mr Shearan said: "I think it will have some impact on our votes."

Mr Shearan said the carbon tax had confused his electorate.

He criticised the lack of detail from federal Labor, saying it had put "fear into people" about the cost-of-living implications.

While Premier Kristina Keneally initially ran hard in support of Ms Gillard on the carbon tax, yesterday she appeared more cautious and keen to emphasise it was a federal policy.

Ms Keneally said Mr O'Farrell and federal Opposition Leader Tony Abbott were "whipping up fear and hysteria", but she was confident that voters recognised that the issue was being handled at a federal level.

Labor MP for the Sydney electorate of Kogarah, Cherie Burton, said the carbon tax was hurting Labor in the polls.

Ms Burton at first declined further comment, saying she was "sticking to state issues", but when The Weekend Australian asked her if she was refusing to endorse the proposal to her electorate, she replied: "That is what I'm saying."

Additional reporting: Amos Aikman