Green plan delayed - Supporters turn on trading scheme

Courier Mail
Friday 27/2/2009 Page: 17

THE Rudd Government will delay the release of its draft legislation on the emissions trading scheme as two key supporters demand sweeping changes. And in a blow to Climate Change Minister Penny Wong, the chief executive of the Australian Industry Group, Heather Ridout, yesterday strongly advised the Government to postpone its ETS until 2012.

It means that the position of Ms Ridout, often referred to as the Government's 21st Cabinet minister because of her influence within Labor circles, is now more aligned to the policy of the Opposition, which also wants the scheme delayed. Ms Ridout said the ETS legislation should still be passed in 2009 so that business had certainty, but the Government's starting date of 2010 was "neither necessary nor realistic". "Australia is already on track to meet its Kyoto commitments over the period to 2012," Ms Ridout said.

"The sharp downturn in the economy and the associated reduction in emissions for example from reduced metals production and slower growth in energy demand across the economy will reduce our abatement task in the short term." Senator Wong has signalled the draft legislation, which was due at the end of February, might now be "a little bit later". Opposition Leader Malcolm Turnbull is expected to receive his commissioned research on the emissions white paper by tomorrow.

Meanwhile, a survey released yesterday by the Australian National University showed that the community wanted to address climate change but not if it cost them too much money. The results compiled after interviews with 600 Sydney residents revealed households were willing to pay an extra $135 a month to address climate change but when aggregated across the nation it represented significantly less than what Treasury had estimated.

And in print advertisements to start today, the left-leaning lobby group GetUp encourages readers to fill out a petition against the Government's "weak" targets and send them directly to Mr Rudd. "You've designed your carbon pollution reduction scheme so badly that when I save energy at home, I free up permits to pollute for energy company's to sell on to polluting companies like aluminium smelters," it says.

Queensland Senator Ron Boswell said the community needed to be told about the hidden costs of an ETS. "Every sewing machine, every production line, every mill, every conveyor belt, every piece of machinery that uses energy will suffer a new cost as a result of the ETS that our overseas competitors will not have to face," he said.