ABOUT 50 high-emitting polluters would pay two-thirds of the government's carbon tax take, Greg Combet revealed today as he hinted at a carbon price at the lower end of predictions.
The Climate Change Minister told the National Press Club today that the government was using compensation agreed under the dumped Carbon Pollution Reduction Scheme as its basis for current negotiations with industry. He also set the government?s timetable legislating a carbon price, saying detailed Treasury modelling would be ready by July so the government could introduce legislation in the third quarter of the year. In a move to reassure business, Mr Combet said the Gillard government was committed to providing substantial transitional assistance to emissions-intensive, trade exposed industries. But - taking a $20 carbon price - he said the average price impact on a tonne of steel would be about $2.60 out of an $800 per tonne price. He said the tax would raise the price of aluminium from about $2500 a tonne to $2518.70. "In other words, the carbon cost relating to the core pollution activity for steel would be one-third of 1 per cent of the value of a tonne of steel and three-quarters of 1 per cent of the value of a tonne of aluminium," he said. In a recent paper, the government's climate change adviser Ross Garnaut suggested a carbon price in the $20 to $30 range. Mr Combet also confirmed more than 50 per cent of the carbon tax's revenue would be used for permanent assistance for millions of households. He said the tax would be levied on 1000 of Australia's biggest polluters. But he said the largest impact would be borne by just a few dozen. "When you exclude sectors that will not be covered by the carbon price, the 50 largest polluters will be 2 10 retweet Recommend 9 people recommend this. About 50 high polluters to bear carbon tax brunt, Greg Combet tells Press Club | The ... Page 1 of 2 http://www.theaustralian.com.au/national-affairs/about-50-high-polluters-to-bear-carb... 13/04/2011 responsible for around two-thirds of carbon liabilities," Mr Combet said. The speech was an attempt by the government to regain its footing on the climate change debate and ease the concerns of voters and key industry sectors. But key questions remain unanswered, including the final carbon price and the finer details of household compensation. Those details are likely to be released in the second half of the year as the government pushes to finalise the scheme and get it through the parliament by the end of the year. Mr Combet contrasted Labor's plan the Coalition's direct action policy to fight climate change through planting tress and storing carbon in soil. He said the proposal would result in a $30 billion budget black hole, costing households $720 a year. But opposition treasury spokesman Joe Hockey said Labor's carbon tax would simply redistribute wealth rather than change behaviour. "If a lot of people are better off, what's the purpose of the tax?'' he asked. "If you want to change behaviour then you impose a tax with punitive measures behind it and that's why we are opposed to this.'' Mr Combet confirmed some households would do better under the tax than they would ordinarily. He said the compensation had been set above the anticipated tax burden for many households because household energy usage varied. "We are always motivated as a Labor government to do what we can to help people who need it the most. That will be reflected in our policy approach here as well,'' he said.
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