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| Clive Palmer's last-minute carbon tax amendment sows confusion | Clive Palmer's last-minute carbon tax amendment sows confusion |
| (about 1 month later) | |
| Clive Palmer’s last-minute carbon tax repeal amendment appears to extend the consumer watchdog’s tough powers and huge potential penalties to enforce price reductions to businesses other than electricity and gas companies. | |
| Clause 10 of the PUP amendment – which caused Senate chaos on Thursday and eventually scuttled the government’s hopes of finally passing the carbon repeal bills through the Senate – lists “entities” that are covered by the carbon repeal bill’s laws against “price exploitation”. | Clause 10 of the PUP amendment – which caused Senate chaos on Thursday and eventually scuttled the government’s hopes of finally passing the carbon repeal bills through the Senate – lists “entities” that are covered by the carbon repeal bill’s laws against “price exploitation”. |
| The list proposed by PUP includes “an individual, a body corporate, a body politics, a partnership, any other incorporated association or body of entities, a trust or any party or entity which can or does buy or sell electricity or gas”. | The list proposed by PUP includes “an individual, a body corporate, a body politics, a partnership, any other incorporated association or body of entities, a trust or any party or entity which can or does buy or sell electricity or gas”. |
| Business groups and opposition parties were urgently assessing the amendment on Thursday to determine whether it was workable, and the government, while saying it had already agreed to vote for the amendment next week, was unable to fully explain its ramifications. | Business groups and opposition parties were urgently assessing the amendment on Thursday to determine whether it was workable, and the government, while saying it had already agreed to vote for the amendment next week, was unable to fully explain its ramifications. |
| The chief executive of the Australian Industry group, Innes Willox, warned, “any further amendments intended to ensure that carbon savings are passed on should be carefully scrutinised. Amendments that drag in the broader business community would be unworkable and cause regulatory mayhem, particularly as so many businesses have absorbed the carbon price and not passed it on to their customers.” | |
| Industry sources said the amendment certainly seemed to extend the number of businesses that are required to show exactly how they are passing carbon costs on to customers – possibly to anyone selling fridges or freezers or air conditioners which use synthetic gases, and maybe even further. | Industry sources said the amendment certainly seemed to extend the number of businesses that are required to show exactly how they are passing carbon costs on to customers – possibly to anyone selling fridges or freezers or air conditioners which use synthetic gases, and maybe even further. |
| The Business Council of Australia called for the repeal to be passed without delay and slammed back room negotiations over crucial legislation – including Clive Palmer's next proposed amendment to introduce a "dormant" emissions trading scheme. | The Business Council of Australia called for the repeal to be passed without delay and slammed back room negotiations over crucial legislation – including Clive Palmer's next proposed amendment to introduce a "dormant" emissions trading scheme. |
| “What is also essential is that discussions about possible amendments to other climate change legislation come out from behind parliamentary closed doors so the impacts on business, the community and economy can be considered as part of a transparent and consultative process," said BCA president, Catherine Livingstone. | “What is also essential is that discussions about possible amendments to other climate change legislation come out from behind parliamentary closed doors so the impacts on business, the community and economy can be considered as part of a transparent and consultative process," said BCA president, Catherine Livingstone. |
| “Anything short of this will fail the national interest and adversely affect both business and the community. Australians, businesses and the economy should not be again subjected to an emissions reduction policy development process where critical detail is worked out behind the scenes as part of a political negotiation leading to unworkable policies for businesses and the economy. | “Anything short of this will fail the national interest and adversely affect both business and the community. Australians, businesses and the economy should not be again subjected to an emissions reduction policy development process where critical detail is worked out behind the scenes as part of a political negotiation leading to unworkable policies for businesses and the economy. |
| “What we want to see is good policy design and process with any new or amended greenhouse gas reduction legislation subjected to a green paper and white paper process that is fully transparent and consultative," Livingstone said. | “What we want to see is good policy design and process with any new or amended greenhouse gas reduction legislation subjected to a green paper and white paper process that is fully transparent and consultative," Livingstone said. |
| Palmer himself appeared to believe the amendment did require companies other than electricity and gas retailers to pass on savings – for example supermarkets or airlines, some of which have said they absorbed the carbon cost and will not be passing any savings to customers. | Palmer himself appeared to believe the amendment did require companies other than electricity and gas retailers to pass on savings – for example supermarkets or airlines, some of which have said they absorbed the carbon cost and will not be passing any savings to customers. |
| Announcing his bombshell amendments on Thursday morning, Palmer said: “We read this morning that Virgin and Qantas have said they are not going to pass those savings on to consumers, they are just going to absorb them as extra profits. We don’t think that is a reasonable thing.” | Announcing his bombshell amendments on Thursday morning, Palmer said: “We read this morning that Virgin and Qantas have said they are not going to pass those savings on to consumers, they are just going to absorb them as extra profits. We don’t think that is a reasonable thing.” |
| The amendment also requires companies that do not pass on savings to pay back to the government 2.5 times the money they improperly retained. When the government received legal advice that this change constituted a tax – which cannot be initiated in the upper house – the repeal bills were voted down so that the government could reintroduce them in the House of Representatives on Monday and pass the PUP amendment there. | The amendment also requires companies that do not pass on savings to pay back to the government 2.5 times the money they improperly retained. When the government received legal advice that this change constituted a tax – which cannot be initiated in the upper house – the repeal bills were voted down so that the government could reintroduce them in the House of Representatives on Monday and pass the PUP amendment there. |
| In a press conference responding to the embarrassingly chaotic morning in the Senate chamber and the temporary thwarting of the government’s carbon tax repeal, government ministers said they had accepted and would vote for the amendment, but were evasive about how broadly it would apply. | In a press conference responding to the embarrassingly chaotic morning in the Senate chamber and the temporary thwarting of the government’s carbon tax repeal, government ministers said they had accepted and would vote for the amendment, but were evasive about how broadly it would apply. |
| The leader of the government in the Senate, Eric Abetz, said the ACCC had been asked to look into the allegations that supermarkets and airlines would not be passing on the cost savings. | The leader of the government in the Senate, Eric Abetz, said the ACCC had been asked to look into the allegations that supermarkets and airlines would not be passing on the cost savings. |
| And the environment minister, Greg Hunt, said: “Well, our situation is a general arrangement for the ACCC. The Palmer United party's amendments have been on the table all week and I will refer you to them and you can address them for themselves. These are their amendments, not ours.” | And the environment minister, Greg Hunt, said: “Well, our situation is a general arrangement for the ACCC. The Palmer United party's amendments have been on the table all week and I will refer you to them and you can address them for themselves. These are their amendments, not ours.” |
| Asked again, Hunt said: “Well, the Palmer amendments are in addition to the government's general power and they were focused on power, electricity and gas.” | Asked again, Hunt said: “Well, the Palmer amendments are in addition to the government's general power and they were focused on power, electricity and gas.” |
| Asked again in the Senate whether they would apply to all businesses, Abetz said: “That is a very open-ended question.” | Asked again in the Senate whether they would apply to all businesses, Abetz said: “That is a very open-ended question.” |
| The Greens leader, Christine Milne, called on the government to explain what the PUP amendment actually meant. | The Greens leader, Christine Milne, called on the government to explain what the PUP amendment actually meant. |
| "I would like to hear the government explain exactly what these amendments do. The government has said it's opposed to red tape, it is opposed to green tape, but now it loves yellow tape, it would seem, because these amendments seem to have wide-reaching regulatory function and quite a strong penalty. | "I would like to hear the government explain exactly what these amendments do. The government has said it's opposed to red tape, it is opposed to green tape, but now it loves yellow tape, it would seem, because these amendments seem to have wide-reaching regulatory function and quite a strong penalty. |
| "I'd like to know whether the government actually consulted with business or to know how widely the amendments apply. | "I'd like to know whether the government actually consulted with business or to know how widely the amendments apply. |
| "At the one level they might appear to apply to just electricity and gas suppliers, but because they say they have to report on the entire supply chain and because they have to report on direct and indirect … impacts of carbon pricing it is impossible to know how widely these regulatory measures will apply, but the penalties are great and business will want to know how they are going to be subject to them. | "At the one level they might appear to apply to just electricity and gas suppliers, but because they say they have to report on the entire supply chain and because they have to report on direct and indirect … impacts of carbon pricing it is impossible to know how widely these regulatory measures will apply, but the penalties are great and business will want to know how they are going to be subject to them. |
| "Not only that, it's no longer just corporations. It goes to an entity which can include an individual, a partnership, a trust, virtually anyone can be caught up in these amendments." | "Not only that, it's no longer just corporations. It goes to an entity which can include an individual, a partnership, a trust, virtually anyone can be caught up in these amendments." |
| Other crossbench senators were also concerned. Liberal Democrat senator David Leyonhjelm said the amendment was “very prescriptive” and “is really going beyond what is reasonable.” He said the amendment imposed "extremely high fines” for transgressions as minor as “failure to lodge documents". | Other crossbench senators were also concerned. Liberal Democrat senator David Leyonhjelm said the amendment was “very prescriptive” and “is really going beyond what is reasonable.” He said the amendment imposed "extremely high fines” for transgressions as minor as “failure to lodge documents". |
| The chief executive of the Electricity Supply Association, Matthew Warren, said the delay in the vote would cause uncertainty for the industry. | The chief executive of the Electricity Supply Association, Matthew Warren, said the delay in the vote would cause uncertainty for the industry. |
| “Delay will add serious complexity to the repeal process, further delaying the savings to consumers who will continue to pay for carbon in their power bills until the law is changed,” Warren said. | “Delay will add serious complexity to the repeal process, further delaying the savings to consumers who will continue to pay for carbon in their power bills until the law is changed,” Warren said. |
| Abetz said: “The government will seek to do everything it can to facilitate the passage of the repeal in a manner that will allow the Palmer United amendments to be moved in the House of Representatives and then come through to the Senate next week. So that by the end of next week, hopefully, this impost on Australians' cost of living and the job-destroying tax that it is, costing Australians $11m a day, as we speak, can be removed for all time.” | |
| The amendment prompted chaotic scenes in parliament, with 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 – the time at which the government’s own “gag” motion had decreed a vote must be taken. Media representatives hovered nearby, listening in to snatches of the conversation. | The amendment prompted chaotic scenes in parliament, with 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 – the time at which the government’s own “gag” motion had decreed a vote must be taken. Media representatives hovered nearby, listening in to snatches of the conversation. |
| In the end the government was forced into the embarrassing, but temporary, backdown. It is expected the carbon tax repeal will pass both houses of parliament next week. | In the end the government was forced into the embarrassing, but temporary, backdown. It is expected the carbon tax repeal will pass both houses of parliament next week. |