Garnaut hits back at Costa criticism

Australian
Tuesday 8/7/2008 Page: 4

THE Rudd Government's climate change adviser rounded on Michael Costa after the NSW Labor Treasurer warned that "Chicken Little" politics were pervading the global-warming debate. However, three state governments joined Mr Costa yesterday in supporting compensation for electricity generators under an emissions trading scheme. Ross Garnaut hit back at Mr Costa after his attack in The Australian yesterday, and there were calls from within the Labor caucus for him to be disciplined by NSW Premier Morris Iemma.

Professor Garnaut said Mr Costa's position as a climate change sceptic had been known for some time. "The NSW Treasurer is a well known denier of the science (of climate change)," he said. "I'd be very happy to have further discussions with him in Sydney on Thursday." South Australian Energy Minister Pat Conlon accused Professor Garnaut of being indifferent to the fate of coal-fired electricity generation to the point of irresponsibility."

Queensland Premier Anna Bligh also favours compensation but rebuked Mr Costa over his colourful attack on the Garnaut report, which argues against special treatment for the generators. "It is far too serious an issue for name calling. This is the biggest challenge being faced globally and we need to work together to find solutions," Ms Bligh said. She also backed the Rudd Government's plan to introduce an ETS in 2010, saying that, though it would demand extraordinary effort, she was confident Australia could rise to the challenge.

A Victorian Government spokeswoman said it wanted to ensure the federal government understood the impact of an ETS on low-income families, power generators and trade-exposed companies in the state. After meeting Professor Garnaut in Perth yesterday, West Australian Premier Alan Carpenter said it did not appear Mr Costa would get his wish of free permits for the power industry. "I doubt whether the ultimate model will be one of free permits," Mr Carpenter said.

"I don't think that will happen. .. what Professor Garnaut has suggested is a stepped approach where initially for the first two years you have a fixed price for the permits and then after two years the market price will prevail. "Ultimately though, for us in Western Australia, we have to understand there are going to be costs in the implementation of an. .. emissions trading scheme." Professor Garnaut said it was not surprising there were dissenting views about global warming, as it was "a complicated issue."

"This is a democratic country and every interest has a legitimate right to put its case and that case will be put vigorously I'm sure," he said. "What we must make sure of is that we have a strong centre of the public policy process so that the public interest is looked after." NSW Labor backbencher Steve Whan called on Mr lemma to give Mr Costa "a boot up the bum" for contradicting government policy.

Mr Whan, the member for the southern seat of Monaro, said Mr Costa's calls for electricity generators to be given free permits conflicted with his Government's policy, and reflected the Treasurer's interest in revenue from coalfired power stations. "If I, as a backbencher, came out and contradicted government policy like that, I'd get a boot up the bum," he said. "I think that's what he should be getting from the Premier as well." Federal Climate Change Minister Penny Wong also rejected Mr Costa's warnings after he argued in The Australian that: "Chicken Little arguments are no substitute for getting right the important details on issues of far-reaching consequence, but Professor Garnaut himself has said his detailed economic impact modelling won't be available until August."

Ms Bligh wrote to Professor Garnaut last month saying there was a case for transitional assistance for electricity generators for the disproportionate burden they suffered under an ETS. Mr Conlon took a similar approach. "An ETS in Australia's situation must take into account the current generators remaining commercial, something which the Garnaut report never seems to have embraced," he said.