Coal chiefs' $10b compo claim 'greedy'

Canberra Times
Friday 15/5/2009 Page: 2

The Federal Government will meet coal industry representatives for the second time in a week today to try to hammer out an agreement on the proposed carbon pollution reduction scheme. The meeting conies as Labor introduced 10 Bills, that will establish the revised emissions trading scheme, through the House of Representatives yesterday. But the legislation remains unlikely to pass the Senate in its current form.

Parliamentary secretary for climate change Greg Combet has dismissed the "ambit" claims of the coal industry for $10 billion in compensation after the introduction of the scheme, saying the $750 million in assistance on the table for the industry was sufficient. Mr Combet's stance on compensation was backed by Construction, Forestry, Mining and Energy Union boss Tony Maher, who urged the Government to push on with the emissions trading scheme, which would "protect over 100,000 jobs" in the coal industry.

Mr Maher said coal industry bosses had been greedy in calling for $10 billion in compensation. "Big mining companies are using the economic downturn as a smokescreen to argue for concessions from the Government and lay off workers to protect profits," he said. The emissions trading legislation will now be examined by the Senate Economics Committee, the fourth parliamentary committee to look at the proposed scheme, before reporting on June 15.

Mr Combet said the legislation was one of the most significant environmental and economic reforms in Australia's history. "If we don't act, average temperatures across Australia are expected to rise by just over five degrees [compared to 1990] by 2100. To put this in perspective, a one degree rise in temperature risks a 15% reduction in stream flow in the Murray - Darling Basin, Australia's biggest river system," he said.

"That is why the Government has said it will commit to a national target to reduce net greenhouse emissions 25% by 2020 over 2000 levels if there is an ambitious global agreement to achieve the 450 parts per million goal." Mr Combet highlighted the removal of "legacy emissions" produced by landfills from the scheme. The change means local councils and landfill operators will avoid paying for emission - producing waste dumped years earlier, and only cover the cost of new waste.

Australian Industry Group chief executive officer Heather Ridout welcomed the change as a "victory for common sense". The revised legislation also delays the start date of the scheme by one year to July 1, 2011, could raise the reduction target to as much as 25% of 2000 levels, subject to an international agreement, and establishes a carbon trust to help households reduce emissions.

But Labor still faces a fight to push the legislation through the Senate. Nationals Senate leader Barnaby Joyce delivered a resounding "no" in the Senate yesterday, and the Greens have indicated they will not support the scheme in its current form. Greens climate change spokeswoman Christine Milne slammed the Government for continuing to invest in the coal industry.

"With the world inexorably turning away from coal, we risk a jobs crash in coal communities if we don't start now with plans to retrain workers for jobs in new sustainable industries seeded in their regions," she said. "In the face of the climate and economic crises, cosseting vulnerable industries is extremely shortsighted. "We need to put Australia on to a sustainable footing with the jobs and industries of the future." Labor is still negotiating over the scheme with the Liberals, who say they will reveal their plans about the scheme in June.