political pressure mounts on cwlth

Two hours ago:

States, territories may establish own carbon emissions scheme

By Samantha Wills

State and territory leaders say they will introduce their own national carbon emissions trading scheme by the end of 2010 if the Commonwealth refuses to act.

State and Territory leaders have been meeting in Sydney this morning following yesterday's water summit in Canberra.

They say while they believe Commonwealth participation in a national scheme is essential, if they refuse to take part, the states will go it alone.

Western Australian Premier Alan Carpenter says it is inevitable the Federal Government joins.

"If it's not John Howard it will be Kevin Rudd because if John Howard doesn't then Kevin Rudd will be the Prime Minister," he said.

While there is little detail, the agreement talks about exempting energy intensive industries from the scheme.

Queensland Premier Peter Beattie, who has been unsure in the past because of his state's large coal industry, says the industry is now on board.

"I'm saying to the Prime Minister today because he knows my view on this, I'm saying, 'come with us, we're giving you leadership on this,'" he said.

Leaders also say they will protect major exporters by exempting high energy industries from the scheme.

New South Wales Premier Morris says it is part of the transition.

"It is inevitable but in our determination to save the planet we have to be careful we don't destroy the country," he said.

They also want an assurance from the Prime Minister that he will not use federal powers to impose nuclear plants on the states.

Victorian Premier Steve Bracks says they are also concerned the $10 billion promised for the Murray-Darling will be used to fund other projects apart from the river.

They say the issue could be resolved with a memorandum of understanding without the states having to hand over their constitutional rights.

The leaders also want a constitutional convention held in February next year to discuss federal-state powers.

http://www.abc.net.au/news/newsitems/200702/s1844063.htm