Eight industries get 95% free permits

Age
Saturday 20/6/2009 Page: 4

THE Government has released key details of help for eight industries under its emissions trading scheme before a crucial vote on the legislation next week. The draft regulations released yesterday outline how the Government will determine which industries get what rate of help to cushion them from the effects of the emissions trading scheme.

The Department of Climate Change has decided that companies involved in the production of carbon black, methanol, silicon, bulk flat glass, newsprint and zinc smelting will receive 95% of their carbon permits free of charge. Producers of glass containers and white titanium dioxide pigment will receive 66% of their permits free.

Industry will be given free permits based on their "trade exposure" to other markets and the rate of production to carbon emissions. Climate Change Minister Penny Wong said yesterday the rate of assistance for other industries would be decided with a review panel headed by former Caltex chairman Dick Warburton over coming months.

The fate of the Government's emissions trading scheme remains in doubt in the short term because a likely vote in the Senate next week is expected to defeat the legislation. Opposition Leader Malcolm Turnbull has indicated he will negotiate with the Government for more help for industry later in the year in exchange for passing the legislation, but not until after December's international climate change conference in Copenhagen.

Senator Wong yesterday seized on reports that the Opposition was organising a filibuster to delay a vote on the scheme in an attempt to avoid setting up a double dissolution trigger before the end of the year. "Mr Turnbull should come out today and rule out his senators wasting time on delaying tactics to avoid a vote," she said. "Because that is what a number of his senators are threatening, wasting time to avoid a vote, a delaying tactic that is not in the national interest. He should listen to the business community and he should listen to the Australian people."

The Opposition will move an amendment to delay the legislation until after December, but that is likely to be defeated because the Government, Greens and independent senator Nick Xenophon will reject it. Senator Xenophon's second amendment, to delay the vote until August so Treasury can do further modelling, will not be supported by the Government, Greens or Family First senator Steve Fielding.

The Opposition and cross-bench senators have all indicated they will not vote for the scheme in its present form.