Review for emissions plan

Age
Friday 13/2/2009 Page: 18

TREASURER Wayne Swan has ordered another review of the Federal Government's emissions trading scheme, prompting the Opposition to accuse it of abandoning its climate change policy. Mr Swan asked the Economics Committee to "inquire into the choice of emissions trading as the central policy to reduce Australia's carbon pollution". The Government said it remained committed to introducing emissions trading legislation. It is expected the Government will use the Labor-dominated committee to argue for the scheme while it is trying to get its contentious legislation through a potentially hostile Senate.

One Labor source told The Age it "would not be unhelpful" to receive public submissions supporting the Government's position while it is likely to face a frosty reception from the Opposition and crossbenchers. A spokeswoman for Climate Change Minister Penny Wong said it was normal procedure to refer major economic policies to parliamentary committees. "(Opposition Leader) Malcolm Turnbull might not want to talk about the carbon pollution reduction scheme, but we are keen for it to receive as much . . . consideration as possible," spokeswoman Ilsa Colson said.

Mr Turnbull said the review was the first step to abandoning the emissions trading scheme, adding it put into question the Government's 2010 start date for the scheme. The Opposition is waiting for its own economic analysis before announcing whether it will support the Government's emissions trading plan. Written by David Pearce, executive director of the Centre for International Economics, the analysis will be released later this month.

Mr Pearce yesterday released a separate report into climate change mitigation, written with economist Warwick McKibbin, that argues for a clear price on carbon to be developed through a global trading scheme or global tax.