Govt must explain carbon scheme: MPs

By Paul Osborne, AAP October 7, 2011, 5:58 pm

AAP ©

The federal government must try harder to explain to the community the pros and cons of its carbon pricing scheme and the impact of the changes on liquefied natural gas (LNG), a cross-party parliamentary committee says.
A report by the committee set up to inquire into Labor's 19 clean energy bills was released on Friday as the government prepares to push its legislation through the lower house next week.
The laws to establish a fixed $23-per-tonne carbon price from July 1, 2012, before moving to an emissions trading scheme (ETS) in 2015, will then go to the Senate where they are due to be supported by the Greens before passing into law in December.
While a coalition-dominated Senate inquiry report also released on Friday predictably rejected the carbon tax as "economic pain for no environmental gain", the second report by the joint select committee called for the bills to be passed.
However, the second report also warned there was a "degree of uncertainty" about the carbon pricing scheme.
"To deal with this, considerable effort is needed in the implementation of the package to ensure that those covered by it are aware of its impacts, their obligations and the opportunities available to them," the committee said.
While the independent, Green and Labor members backed the bills, the committee called for improved work with community groups, industry, the states and local government to explain the policy, especially in regard to new opportunities in carbon farming, clean energy and energy efficiency.
The committee also called for a rethink of the way LPG and refrigeration and air-conditioning gases were treated under the carbon price.
Committee chairwoman and Labor MP Anna Burke said the policy was sound.
"Based on the evidence before it and the material on the public record, the package represents the most comprehensive, efficient and equitable basis for Australia to meet its commitments to reduce greenhouse gas emissions and move to a clean energy economy," she said in the report.
"Businesses that are early developers of clean technology have the opportunity to reap significant financial rewards."
The Senate committee's 361-page report estimated the carbon tax will cost every Australian $40,000 in the period to 2050 and a cost-benefit analysis should be conducted before it passes into law.
"This is likely to be an underestimate," the report said.
"A carbon tax will be all economic pain for no environmental gain."
The report calls for the clean energy legislation to be defeated in parliament, arguing the government had no mandate, Treasury modelling was flawed, it would undermine Australian businesses' ability to compete in the global economy, have a disproportionate impact on regional Australia and raise the cost of living.
If the bills were to pass, the committee said, they should not be written in a way that bound future governments from amending or rescinding the scheme.
And if parliament was to approve the bills, any move towards an ETS should only be done "once current global economic circumstances have improved and there is a legally binding global agreement on tackling climate change", the committee recommended.
A final recommendation called on the Senate to receive all Treasury modelling and an independent review of the modelling, as well as a cost-benefit analysis by the Productivity Commission.
The committee said the emissions cap should be made disallowable and carbon permits not be private property.
Both committee reports included dissenting findings.

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140Thumbs Up Thumbs Down125
Liz12:26pm Friday 07th October 2011 ESTReport Abusean opposition-dominated Senate committee says. Oh please give it a break; is this the same lot that left a $70,000.00 black hole in their budget.
20 Replies
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Darius12:35pm Friday 07th October 2011 ESTReport AbuseKevie of TROY needs all the money he can get. He did make a patnership deal with the World Bank for all donations to Asia. JuLIAR needs all the money they can get to pay off the charge cards and outstanding debts.Swannie needs all the money he can get to try and balance the Budget. Big money spinner for an inept lack lustre and lacking any integrity Government.Comment hidden due to its low rating. Show
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gncorp12:41pm Friday 07th October 2011 ESTReport AbuseThe Liberals can’t get their $70bn black hole correct as each federal Liberal MP can’t agree with what the actual figure is. The carbon tax is the cheapest way to tackle the problem as the LNP plan is to give billions upon billions for the top businesses as they pretend to do something about it.
3 Replies
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gary12:46pm Friday 07th October 2011 ESTReport AbuseAll I can say is " this is the tax we were never going to have " just proves you can't trust politicians. There should be a way in the constitution to remove them from power if they lie, rather than have to wait 4 years to remove them. If a citizen made a claim that was false and gained an advantage by making that claim the police would charge that person with gaining financial benefit by deception, a criminal offense.Comment hidden due to its low rating. Show
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B12:46pm Friday 07th October 2011 ESTReport AbuseGod help us all.... Labor should NOT be allowed to do this with out a vote. They cheated us out of our say at the election with their lies and they want to sabotage the laws so they can not be repealed...Comment hidden due to its low rating. Show
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Sherrie12:58pm Friday 07th October 2011 ESTReport AbuseIf this tax is so great and effective then why the need to legislate it the way they are so it can't be turned back. Why not let the tax itself speak for itself?Comment hidden due to its low rating. Show
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Griffin01:04pm Friday 07th October 2011 ESTReport AbuseWhat a scam, and more lies. This is to help boost a communist world state where commies control everything and give everyone a small piece - same as everyone else. The head honchoes take the cream. That commie redhead lump of bovine dropping must be chucked out of Govt. NOW!Comment hidden due to its low rating. Show
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mickey booboo01:08pm Friday 07th October 2011 ESTReport Abuseclick like if you think labor will be out in the next election!Comment hidden due to its low rating. Show
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liteluv01:10pm Friday 07th October 2011 ESTReport AbuseCrazy!
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Meng Zed01:17pm Friday 07th October 2011 ESTReport Abuse$40,000 to 2050 - that is almost 40 years.... So $1,000 per person per year is not bad at all!!!
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Govt must explain carbon scheme: MPs