Australian carbon tax one step closer to becoming law

A CARBON tax opposed by most Australians was one step closer to becoming law last night after passing through the lower house…

A CARBON tax opposed by most Australians was one step closer to becoming law last night after passing through the lower house of federal parliament.

After the Labor government’s carbon tax package passed by 74 votes to 72, opposition leader Tony Abbott gave a “pledge in blood” to dismantle the tax when the Liberal/National coalition next forms a government.

“I am giving you the most definite commitment any politician can give, that this tax will go. This is a pledge in blood; this tax will go,” he said. “We will repeal this tax; we will dismantle the bureaucracy associated with it.”

Prime minister Julia Gillard said the tax would result in a cut of 160 million tonnes of carbon from the atmosphere by 2020.

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“You’ll be able to see the biggest polluters changing their conduct and behaviour,” she told ABC Radio.

Ms Gillard admitted the government faced an uphill battle in turning around public opinion. “When there is a significant change like this one, we have to keep explaining it,” she said.

Carbon dioxide emissions will be taxed at a rate of $23 (€16.89) a tonne from July 1st next year, rising by 2.5 per cent a year for three years. In 2015, the package will convert to an emissions trading scheme.

The public will be compensated for resulting price rises through tax cuts and increased social welfare payments. The package is also aimed at encouraging investment in clean and renewable energy and will provide assistance to some affected industries, such as steel.

When the legislation passed, Labor and independent MPs cheered. Former Labor prime minister Kevin Rudd kissed Ms Gillard, the woman who deposed him, in celebration. This was later dubbed a “Judas kiss” by some on the opposition benches, who say Mr Rudd is plotting against the prime minister. Protesters angry at the passing of the bill repeatedly interrupted question time in parliament. A group in the public gallery, chanting “no mandate, democracy is dead”, interrupted Ms Gillard four times as she attempted to answer a question.

About 80 protesters were subsequently escorted out of the gallery by attendants.

The carbon tax legislation moved to the Australian upper house late last night. Its passage there is assured because the Greens party, which supports the tax, holds the balance of power.

Business lobby groups, such as the Australian chamber of commerce and industry, have vowed to keep fighting the legislation.