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Nick Xenophon throws doubt on push to have carbon tax repealed quickly Nick Xenophon throws doubt on push to have carbon tax repealed quickly
(2 months later)
Independent senator Nick Xenophon has thrown more doubt on the government’s campaign to have the carbon tax repealed in the first two weeks of the new Senate, saying it was an unreasonable time frame.Independent senator Nick Xenophon has thrown more doubt on the government’s campaign to have the carbon tax repealed in the first two weeks of the new Senate, saying it was an unreasonable time frame.
Xenophon is negotiating with the government about amendments to the Coalition’s alternative “Direct Action” scheme, which is also before parliament, and he wants to extract specific pledges before he votes to abolish the existing carbon price.Xenophon is negotiating with the government about amendments to the Coalition’s alternative “Direct Action” scheme, which is also before parliament, and he wants to extract specific pledges before he votes to abolish the existing carbon price.
“The safest course is to adjourn consideration of the carbon tax repeal until the government gives us more information about the emissions reduction fund,” he told Guardian Australia.“The safest course is to adjourn consideration of the carbon tax repeal until the government gives us more information about the emissions reduction fund,” he told Guardian Australia.
“I can’t see in all fairness how the new Senate can vote on this in the first two weeks and I would feel very uneasy voting in that time frame.”“I can’t see in all fairness how the new Senate can vote on this in the first two weeks and I would feel very uneasy voting in that time frame.”
His comments come after Clive Palmer, whose Palmer United party has always supported repeal, demanded legislative guarantees that the carbon tax repeal would flow through to lower household power bills, guarantees the government and the Australian Competition and Consumer Commission argue are unnecessary because of powers already given to the competition watchdog.His comments come after Clive Palmer, whose Palmer United party has always supported repeal, demanded legislative guarantees that the carbon tax repeal would flow through to lower household power bills, guarantees the government and the Australian Competition and Consumer Commission argue are unnecessary because of powers already given to the competition watchdog.
The government is ramping up pressure for the repeal to be passed quickly because of the enormous legislative and commercial uncertainty if it is not.The government is ramping up pressure for the repeal to be passed quickly because of the enormous legislative and commercial uncertainty if it is not.
The government has decreed that the repeal takes effect from 1 July, and major power companies have agreed to take it out of their contracts from that date, but only for two weeks. If the existing law continues after that fortnight they will revert to passing on the cost of the $24.50 carbon price until it is actually repealed under law.The government has decreed that the repeal takes effect from 1 July, and major power companies have agreed to take it out of their contracts from that date, but only for two weeks. If the existing law continues after that fortnight they will revert to passing on the cost of the $24.50 carbon price until it is actually repealed under law.
As well as complicating power pricing, a delayed repeal opens the possibility that emissions-intensive industries could reap a windfall from receiving free permits and then selling them back to the clean energy regulator.As well as complicating power pricing, a delayed repeal opens the possibility that emissions-intensive industries could reap a windfall from receiving free permits and then selling them back to the clean energy regulator.
Guardian Australia reported this would be a potential windfall of $9m for Palmer’s wholly owned Queensland Nickel.Guardian Australia reported this would be a potential windfall of $9m for Palmer’s wholly owned Queensland Nickel.
Business groups including the Business Council of Australia and the Australian Chamber of Commerce and Industry are pressing for a rapid repeal.Business groups including the Business Council of Australia and the Australian Chamber of Commerce and Industry are pressing for a rapid repeal.
But Xenophon says he wants to secure several amendments to the carbon farming initiative amendment bill, which implements the $2.5bn emissions reduction fund.But Xenophon says he wants to secure several amendments to the carbon farming initiative amendment bill, which implements the $2.5bn emissions reduction fund.
They include:They include:
• longer contracts for those bidding for grants to reduce their emissions• longer contracts for those bidding for grants to reduce their emissions
• changes to the objectives of the act to make it clear it is also designed to meet future international agreements, for example the one that may be negotiated in Paris next year, as well as Australia’s minimum target to reduce emissions by 5% by 2020• changes to the objectives of the act to make it clear it is also designed to meet future international agreements, for example the one that may be negotiated in Paris next year, as well as Australia’s minimum target to reduce emissions by 5% by 2020
• more information about the “safeguards” that are supposed to ensure the rest of the economy does not increase its emissions, cancelling out the reductions the government buys with its funds. The government has said it will finalise these by next year.• more information about the “safeguards” that are supposed to ensure the rest of the economy does not increase its emissions, cancelling out the reductions the government buys with its funds. The government has said it will finalise these by next year.
Labor and the Greens will continue to oppose the repeal of the scheme they created when Julia Gillard was prime minister, but from July the government will have the support of the Liberal Democratic party’s David Leyonhjelm who, after the election, told Guardian Australia he was “agnostic” about the science of global warming but “even if it is eventually confirmed, government spending in Australia will not make the slightest bit of difference”. It will also have the support of Family First’s Bob Day. Xenophon and the DLP’s John Madigan also support repeal, but are understood to want assurances about Direct Action.Labor and the Greens will continue to oppose the repeal of the scheme they created when Julia Gillard was prime minister, but from July the government will have the support of the Liberal Democratic party’s David Leyonhjelm who, after the election, told Guardian Australia he was “agnostic” about the science of global warming but “even if it is eventually confirmed, government spending in Australia will not make the slightest bit of difference”. It will also have the support of Family First’s Bob Day. Xenophon and the DLP’s John Madigan also support repeal, but are understood to want assurances about Direct Action.
PUP policy is to support repeal, but Palmer says he will reveal his party’s position on Wednesday.PUP policy is to support repeal, but Palmer says he will reveal his party’s position on Wednesday.
Sources said the Motoring Enthusiast Party senator Ricky Muir – who entered a memorandum of understanding with PUP – had not been consulted about Wednesday’s PUP announcement and could also consider the amendments to the carbon farming legislation being proposed by Xenophon. Sources said the Motoring Enthusiast Party senator Ricky Muir – who entered a memorandum of understanding with PUP – had not been consulted about Wednesday’s PUP announcement and could also consider the amendments to the carbon farming legislation being proposed by Xenophon.
The prime minister, Tony Abbott, reintroduced the carbon tax repeal bills into the House of Representatives on Monday, in preparation for them to be considered as soon as the new Senate sits.The prime minister, Tony Abbott, reintroduced the carbon tax repeal bills into the House of Representatives on Monday, in preparation for them to be considered as soon as the new Senate sits.
“It will be dealt with urgently by the new Senate after 1 July and I expect this carbon tax – this toxic tax – to be gone ... Every crossbench member of the Senate has stated opposition to the carbon tax, which is why I think the public are entitled to be confident that the carbon tax will be gone – will be gone after the first of July,” Abbott said.“It will be dealt with urgently by the new Senate after 1 July and I expect this carbon tax – this toxic tax – to be gone ... Every crossbench member of the Senate has stated opposition to the carbon tax, which is why I think the public are entitled to be confident that the carbon tax will be gone – will be gone after the first of July,” Abbott said.
The chairman of the ACCC, Rod Sims, told Guardian Australia he believed his organisation “has all the power it needs”.The chairman of the ACCC, Rod Sims, told Guardian Australia he believed his organisation “has all the power it needs”.
“The law says you can’t have a carbon component in your pricing … It says companies have to show they will take the carbon component out of their pricing and if they don’t we have the power to act,” he said.“The law says you can’t have a carbon component in your pricing … It says companies have to show they will take the carbon component out of their pricing and if they don’t we have the power to act,” he said.
The positioning ahead of the Senate vote comes as a new poll for the Climate Institute found that for the first time more people support carbon pricing than oppose it. According to the poll, 34% back the carbon pricing laws, up 6% on 2012. Public opposition to carbon pricing has collapsed by 22% since 2012, when the Coalition was repeatedly attacking the then Labor government over the policy, the poll found.The positioning ahead of the Senate vote comes as a new poll for the Climate Institute found that for the first time more people support carbon pricing than oppose it. According to the poll, 34% back the carbon pricing laws, up 6% on 2012. Public opposition to carbon pricing has collapsed by 22% since 2012, when the Coalition was repeatedly attacking the then Labor government over the policy, the poll found.