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Clive Palmer blocks carbon tax repeal amid Senate chaos Clive Palmer blocks carbon tax repeal amid Senate chaos
(about 2 hours later)
Tony Abbott’s “pledge in blood” to axe the carbon tax will have to wait until next week after the Senate processes descended into chaos and the Palmer United party senators voted against the carbon tax repeal.Tony Abbott’s “pledge in blood” to axe the carbon tax will have to wait until next week after the Senate processes descended into chaos and the Palmer United party senators voted against the carbon tax repeal.
The latest Clive Palmer drama began when the PUP leader rewrote an amendment, insisting that power companies not passing on carbon tax price reductions should be hit with a penalty of 250% of the saving improperly received.The latest Clive Palmer drama began when the PUP leader rewrote an amendment, insisting that power companies not passing on carbon tax price reductions should be hit with a penalty of 250% of the saving improperly received.
Palmer said the amendment had been drafted by the government in a loose way that meant it amounted to a “whitewash” and this amounted to “the government pulling a swifty on us” and “double-crossing us”.Palmer said the amendment had been drafted by the government in a loose way that meant it amounted to a “whitewash” and this amounted to “the government pulling a swifty on us” and “double-crossing us”.
According to Palmer the government “reacted violently” to his last-minute revision, with senior ministers inundating him and his Senate leader, Glenn Lazarus, with angry calls.According to Palmer the government “reacted violently” to his last-minute revision, with senior ministers inundating him and his Senate leader, Glenn Lazarus, with angry calls.
The government subsequently produced advice from the clerk of the Senate that the amendment could also be unconstitutional because the penalty could be considered a tax and tax law may not be initiated in the upper house.The government subsequently produced advice from the clerk of the Senate that the amendment could also be unconstitutional because the penalty could be considered a tax and tax law may not be initiated in the upper house.
But the government had already forced through a “gag” motion to require a vote at 11.50am and the prime minister, Tony Abbott, had already held a triumphant press conference in Perth to herald the imminent repeal of the carbon tax.But the government had already forced through a “gag” motion to require a vote at 11.50am and the prime minister, Tony Abbott, had already held a triumphant press conference in Perth to herald the imminent repeal of the carbon tax.
Chaotic scenes followed, with the leader of the government in the Senate, Eric Abetz, and other ministers huddled in a corridor outside the Senate chamber in frantic last-minute negotiations with Palmer, his senators, other crossbench senators and their advisers, as the clock ticked down to 11.50. Media representatives hovered nearby, listening in to snatches of the conversation.Chaotic scenes followed, with the leader of the government in the Senate, Eric Abetz, and other ministers huddled in a corridor outside the Senate chamber in frantic last-minute negotiations with Palmer, his senators, other crossbench senators and their advisers, as the clock ticked down to 11.50. Media representatives hovered nearby, listening in to snatches of the conversation.
In the end the government was forced into an embarrassing, but temporary, backdown. The carbon tax repeal bills were voted down by the Senate for a third time. New bills must now be introduced into the House of Representatives next week, where the PUP amendment can be moved and where, according to government sources, it will be accepted.In the end the government was forced into an embarrassing, but temporary, backdown. The carbon tax repeal bills were voted down by the Senate for a third time. New bills must now be introduced into the House of Representatives next week, where the PUP amendment can be moved and where, according to government sources, it will be accepted.
Then – presumably – the repeal will finally pass the Senate.Then – presumably – the repeal will finally pass the Senate.
Abetz and the environment minister, Greg Hunt, held a media conference shortly after the vote to declare the government remained committed to "removing the jobs-destroying carbon tax".Abetz and the environment minister, Greg Hunt, held a media conference shortly after the vote to declare the government remained committed to "removing the jobs-destroying carbon tax".
Abetz said the failure of the repeal on Thursday was due to a "technical issue that we can and will overcome by introducing the legislation into the House of Representatives next week."Abetz said the failure of the repeal on Thursday was due to a "technical issue that we can and will overcome by introducing the legislation into the House of Representatives next week."
But Hunt was unclear about the impact of the PUP amendments and whether they applied only to electricity and gas companies passing on the price reductions, or had wider applications. He said the government had accepted the amendments and would vote for them in the lower house, but that PUP could "speak for themselves" in explaining their impact.But Hunt was unclear about the impact of the PUP amendments and whether they applied only to electricity and gas companies passing on the price reductions, or had wider applications. He said the government had accepted the amendments and would vote for them in the lower house, but that PUP could "speak for themselves" in explaining their impact.
As the confusion unfolded, it fell to the finance minister, Mathias Cormann, to draw out a debate in the chamber which the government itself had passed a motion to gag, while his colleagues tried to get some kind of agreement in the chaotic meeting outside the chamber.As the confusion unfolded, it fell to the finance minister, Mathias Cormann, to draw out a debate in the chamber which the government itself had passed a motion to gag, while his colleagues tried to get some kind of agreement in the chaotic meeting outside the chamber.
The leader of the opposition in the Senate, Penny Wong, said “it takes a special blend of arrogance and incompetence to seek to guillotine and filibuster in the same debate … in order to give the government time out there in the corridors to try to cut a deal to repeal the carbon price, because, to use Mr Palmer’s words, they have double-crossed the Palmer United party”.The leader of the opposition in the Senate, Penny Wong, said “it takes a special blend of arrogance and incompetence to seek to guillotine and filibuster in the same debate … in order to give the government time out there in the corridors to try to cut a deal to repeal the carbon price, because, to use Mr Palmer’s words, they have double-crossed the Palmer United party”.
Privately, Labor was incredulous at the government’s inept Senate tactics.Privately, Labor was incredulous at the government’s inept Senate tactics.
A senior Labor source said: “The government took out a gun; loaded it and then handed it to Clive Palmer, who now not surprisingly is holding it to the government’s head to force them to accept his amendment.”A senior Labor source said: “The government took out a gun; loaded it and then handed it to Clive Palmer, who now not surprisingly is holding it to the government’s head to force them to accept his amendment.”
Asked whether he was reneging on a deal with the government to vote down the tax on Thursday, Palmer said: “I guess they should have thought of that.”Asked whether he was reneging on a deal with the government to vote down the tax on Thursday, Palmer said: “I guess they should have thought of that.”
Asked whether the government had tried to trick PUP, Palmer said: “It could have been, but you never want to underestimate the incompetence of the Abbott government.”Asked whether the government had tried to trick PUP, Palmer said: “It could have been, but you never want to underestimate the incompetence of the Abbott government.”
Speaking from Perth ahead of what he anticipated would be a successful repeal vote, Abbott said “getting rid of the carbon tax is good news for families, good news for jobs and good news for prices” adding that “it should mean a reduction in the prices that you pay everywhere in the economy”.Speaking from Perth ahead of what he anticipated would be a successful repeal vote, Abbott said “getting rid of the carbon tax is good news for families, good news for jobs and good news for prices” adding that “it should mean a reduction in the prices that you pay everywhere in the economy”.
Palmer said the government had initially thought the PUP amendment was "too harsh" but then obtained advice from the clerk that the proposed penalty was "a tax not a penalty" and therefore could not be introduced in the Senate.Palmer said the government had initially thought the PUP amendment was "too harsh" but then obtained advice from the clerk that the proposed penalty was "a tax not a penalty" and therefore could not be introduced in the Senate.
"We had a provision that said that if they didn't pass it [the saving] on to the consumer after 12 months they would have to pay 250% of it to the commonwealth. In my mind that's a penalty. It's a consequence of what you haven't done," Palmer said."We had a provision that said that if they didn't pass it [the saving] on to the consumer after 12 months they would have to pay 250% of it to the commonwealth. In my mind that's a penalty. It's a consequence of what you haven't done," Palmer said.
"They [the government] said they weren't prepared to put the amendment and we said we weren't prepared to pass the carbon tax today.""They [the government] said they weren't prepared to put the amendment and we said we weren't prepared to pass the carbon tax today."
Palmer said if the government "really does want to pass the benefits on to consumers it needs to go back to the House of Representatives, insert the amendment that does that, and bring it back to the Senate next week".Palmer said if the government "really does want to pass the benefits on to consumers it needs to go back to the House of Representatives, insert the amendment that does that, and bring it back to the Senate next week".
When the carbon price is eventually repealed it will leave the nation with no legislated policy to achieve even the minimum 5% greenhouse emissions reduction target it has inscribed in international agreements. The government has promised an alternative $2.5bn “direct action” policy, but its legislative fate is also unsure, and its effectiveness has been widely questioned. The Greens leader, Christine Milne, said the chaos showed that Abbott was "a crash or crash through prime minister and today he crashed.
"The government came in today all cock-a-hoop, thinking they had the whole thing stitched up; they went in to gag the debate, then they had to filibuster when the amendments came unstuck and the whole thing fell to pieces – that is going to characterise this period of government unless Tony Abbott learns to respect the Senate and give the Senate time to do what it needs to do," she said.
The Liberal Democrat senator David Leyonhjelm and the Family First's Bob Day said they were disappointed at the failure to repeal the carbon tax on Thursday.Day said he had suggested, during the impromptu meeting with other crossbenchers and the government in the Senate corridor, that the carbon tax repeal bills should be passed immediately and then the PUP amendment could be considered by the House of Representatives next week.
"I put that suggestion to Clive. That suggestion was not taken up," Day said.Leyonhjelm indicated he may not support the PUP amendments, which he described as "very prescriptive" with "extremely high fines for failure to lodge documents". He said if the carbon tax was not repealed "the blame for that will rest with Labor, Greens and the Palmer United party".
When the carbon price is eventually repealed it will leave the nation with no legislated policy to achieve even the minimum 5% greenhouse emissions reduction target it has inscribed in international agreements. The government has promised an alternative $2.5bn “Direct Action” policy, but its legislative fate is also unsure, and its effectiveness has been widely questioned.