Crash or burn as carbon plan faces collapse
Phillip Coorey and Marian Wilkinson
February 20, 2009
THE Federal Government will pledge today to crash through on its emissions trading scheme even though the policy is in peril, as both the Coalition and the Greens harden their opposition and their supporters demand a radical overhaul.
The Climate Change Minister, Penny Wong, will tell a business lunch in Sydney the global financial crisis was no excuse for backing away from implementing the scheme next year.
Strategists from both the Opposition and the Greens said the Government's "our way or the highway" approach was collapsing, and without big changes the emissions scheme would not pass the Senate. The legislation will be introduced in May or June.
To underscore its resolve, last night the Government scrapped a parliamentary inquiry commissioned last week to examine the scheme.
The decision had been interpreted internally and externally as a sign the Government was getting cold feet and looking for an excuse to delay or water down the trading scheme.
Senior sources maintained this was never the case and it was easier to scrap the inquiry rather than allow that perception to fester.
The Coalition flirted yesterday with dumping support for an emissions trading scheme altogether and backing a carbon tax.
Senator Wong will say today "the Government considers other emissions reduction policy to be inferior".
"Our Government remains undeterred in our determination to implement the [trading scheme] because we know it is the economically responsible course of action for Australia."
She accused the Opposition Leader, Malcolm Turnbull, of being compromised by the sceptics in the Coalition and walking away from emissions trading.
His recent announcement of a policy advocating other ways of reducing greenhouse gases was a decoy designed to create the impression he is serious, she said.
Mr Turnbull and his front bench are being told by business leaders that the scheme will threaten exports. "The Government is in chaos", the environment spokesman, Greg Hunt, said. "If we have had 40 or 50 firms coming to us, they have had 100 firms come to them."
The senior Liberal Andrew Robb said the Government was in disarray and he hinted emissions trading should be dumped altogether.
Mr Turnbull, however, did not rule out a compromise, but not without major concessions. "The view that we've taken when we were in government and remains our policy today is that on balance an emissions trading scheme is more effective.
"But it has got to be a well-designed emissions trading scheme, and what the Government has put up as far as we can tell is not."
Yesterday the liquefied natural gas industry added its objections to those of OneSteel, whose chief executive, Geoff Plummer, said this week he could not support the scheme. This is despite the Government winning the backing of key lobby groups, including the Business Council of Australia, which wants certainty for its members.
Some ministers have sought to mend fences with environment groups who oppose the scheme because of its low targets and its proposal to hand over $9 billion in permits to business.
The scheme would aim to cut Australia's emissions by between 5 per cent and 15 per cent on 2000 levels by 2020, significantly below the 25 per cent cut called for by environment groups and the European Union.
The Greens senator Christine Milne said the scheme was "in real trouble". She described the targets as completely inadequate.
"They're walking a tightrope with this," said the Climate Institute's John Connor. "They've strayed into Coalition territory and they have a lot of work to do to come back and work with other members of the Senate."
Charlie,
One has to wonder what Obama will actually do State side...
Phillip Coorey and Marian Wilkinson
February 20, 2009
THE Federal Government will pledge today to crash through on its emissions trading scheme even though the policy is in peril, as both the Coalition and the Greens harden their opposition and their supporters demand a radical overhaul.
The Climate Change Minister, Penny Wong, will tell a business lunch in Sydney the global financial crisis was no excuse for backing away from implementing the scheme next year.
Strategists from both the Opposition and the Greens said the Government's "our way or the highway" approach was collapsing, and without big changes the emissions scheme would not pass the Senate. The legislation will be introduced in May or June.
To underscore its resolve, last night the Government scrapped a parliamentary inquiry commissioned last week to examine the scheme.
The decision had been interpreted internally and externally as a sign the Government was getting cold feet and looking for an excuse to delay or water down the trading scheme.
Senior sources maintained this was never the case and it was easier to scrap the inquiry rather than allow that perception to fester.
The Coalition flirted yesterday with dumping support for an emissions trading scheme altogether and backing a carbon tax.
Senator Wong will say today "the Government considers other emissions reduction policy to be inferior".
"Our Government remains undeterred in our determination to implement the [trading scheme] because we know it is the economically responsible course of action for Australia."
She accused the Opposition Leader, Malcolm Turnbull, of being compromised by the sceptics in the Coalition and walking away from emissions trading.
His recent announcement of a policy advocating other ways of reducing greenhouse gases was a decoy designed to create the impression he is serious, she said.
Mr Turnbull and his front bench are being told by business leaders that the scheme will threaten exports. "The Government is in chaos", the environment spokesman, Greg Hunt, said. "If we have had 40 or 50 firms coming to us, they have had 100 firms come to them."
The senior Liberal Andrew Robb said the Government was in disarray and he hinted emissions trading should be dumped altogether.
Mr Turnbull, however, did not rule out a compromise, but not without major concessions. "The view that we've taken when we were in government and remains our policy today is that on balance an emissions trading scheme is more effective.
"But it has got to be a well-designed emissions trading scheme, and what the Government has put up as far as we can tell is not."
Yesterday the liquefied natural gas industry added its objections to those of OneSteel, whose chief executive, Geoff Plummer, said this week he could not support the scheme. This is despite the Government winning the backing of key lobby groups, including the Business Council of Australia, which wants certainty for its members.
Some ministers have sought to mend fences with environment groups who oppose the scheme because of its low targets and its proposal to hand over $9 billion in permits to business.
The scheme would aim to cut Australia's emissions by between 5 per cent and 15 per cent on 2000 levels by 2020, significantly below the 25 per cent cut called for by environment groups and the European Union.
The Greens senator Christine Milne said the scheme was "in real trouble". She described the targets as completely inadequate.
"They're walking a tightrope with this," said the Climate Institute's John Connor. "They've strayed into Coalition territory and they have a lot of work to do to come back and work with other members of the Senate."
Charlie,
One has to wonder what Obama will actually do State side...
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