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ETS compo 'not a bottomless pit': Wong

23 Oct, 2009 09:43 AM
THE Government's emissions trading scheme is not a ''bottomless pit'' of money, and Opposition amendments will have to be financially responsible, the Climate Change Minister, Penny Wong, warned yesterday.

She also cast doubt on Coalition claims that there is $50 billion in unallocated revenue from the sale of carbon credits, saying she would like to know how the Opposition reached that figure.

Senator Wong was speaking after the Government reintroduced its legislation for an emissions trading scheme into the House of Representatives yesterday.

It needed to introduce the bills this week to leave open the possibility of a trigger for a double dissolution before global climate change talks in December.

Speaking in Parliament on the introduction of the bills, the assistant Climate Change Minister, Greg Combet, appeared to cast doubt on Coalition amendments exempting coalmining and agriculture from the scheme.

''Any proposal to exclude or carve out sectors from the CPRS must be examined very carefully,'' he said.

''Any benefits have to be weighed up against the increased burden on other industry sectors, the loss of opportunities for low-cost emissions reductions, and the possible loss of permit revenue to assist households.''

Senator Wong would not reveal what the Government had forecast as future earnings from a scheme, saying governments did not normally reveal forward estimates beyond a certain year.

''There is no bottomless pit of money when we look at this legislation,'' she said. ''They've put a figure on the table, and I'm certainly interested in understanding how they've arrived at that.''

The Opposition says amendments it is negotiating - which include giving much more compensation to heavy industry and coal-fired electricity plants - would not add to the federal budget.

The Coalition says it will use money from the sale of carbon permits after 2015 to pay for the compensation, which has been estimated to cost $8.9 billion in the first five years of the scheme.

At a Senate estimates hearing yesterday Treasury officials said households faced a $78 price rise in electricity in the first year of the scheme, followed by $146 in the second. The Government proposes to compensate households for price rises in the second year.

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Date: Newest first | Oldest first
Minister Wong seems to think that it is bottomless pit to tax business!
Posted by Nick, 23/10/2009 12:39:06 PM
This woman should be arrested, charged with treason and locked away for a min of 30 years.
Posted by Loc Hey, 23/10/2009 5:28:39 PM
If Minister Wong & her party colleagues at both Federal & State levels did not believe they are creating a bottomless revenue pit they would not be creating one that will be funded by consumers & particularly young home buyers. Indeed, the solar oriented building regulations already implemented by State & Local Governments will add tens of thousands of dollars to the cost of each new home. Even at the rate of 10% the GST revenue flowing from that will be immense. The coalition party's at both State & Federal levels darned well know that will be so & hence their amendment game playing instead of opposing the whole rort.
Posted by jock, 23/10/2009 6:36:35 PM

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Climate Change Minister, Penny Wong, yesterday cast doubt on Coalition claims that there is $50 billion in unallocated revenue from the sale of carbon credits, saying she would like to know how the Opposition reached that figure.
Climate Change Minister, Penny Wong, yesterday cast doubt on Coalition claims that there is $50 billion in unallocated revenue from the sale of carbon credits, saying she would like to know how the Opposition reached that figure.
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21 October, 2009
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Q: Who do you think is the best person to lead the Federal Liberal Party?

Malcolm Turnbull
(46.4%)

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Total Votes: 760
Poll Date: 18 October, 2009

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