Herald Sun
Friday 22/1/2010 Page: 26
VICTORIANS could face higher electricity and petrol prices from July 1 if the Rudd Government adopts a carbon tax proposal by the Greens to break the climate change policy deadlock. Prime Minister Kevin Rudd said he would examine the idea and was open to discussions with all parties. The Greens called for a $23-a-tonne carbon tax to be introduced for two years. The temporary tax would raise $10 billion a year, of which $5 billion would be paid as compensation to low and middle-income households to shelter them from higher electricity and energy prices.
Industry and small business would get about $2 billion in assistance with $1.2 billion given to help poor countries deal with climate change. Unlike the Government's plan, petrol would be hit by the tax and it could add about 5c a litre at the pump. Electricity generators would also miss out on compensation, but farming will be excluded. The plan aims to put the Greens back into the national debate about climate change, after they were effectively sidelined by the Rudd Government last year as it sought to strike a deal with the Coalition's former leader Malcolm Turnbull.
Greens leader Bob Brown said it was urgent and essential that a deal be struck in the short term, to begin the quest to reduce climate change, while a proper plan was worked out for the longer term. "Our job is to help get the climate change bus going again," Senator Brown said. Mr Rudd's carbon pollution reduction scheme was blocked by the Senate last year. It faces defeat again when Parliament resumes.
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