We will remove carbon tax compo, Oppn

Updated: 16:53, Sunday September 18, 2011

We will remove carbon tax compo, Oppn

Compensation given to households and industry under the government’s proposed carbon tax would be removed if the coalition wins office, says Joe Hockey.

Debate will resume on the government’s carbon price legislative package this week, with the opposition continuing to maintain it will not support it.

Not only has the opposition vowed to remove the legislation if it wins office, it says it will remove various compensation measures attached to it.

‘Well, we have to,’ shadow treasurer Joe Hockey told Sky News on Sunday.

‘We’ve committed to removing the carbon tax. I don’t think it’s hard to introduce legislation to abolish the carbon tax.’

Further pressed on whether he thought it might be difficult to unwind the tax once it was legalised, he replied ‘No, I don’t.’

The government wants a $23-a-tonne fixed price on carbon to start on July 1, 2012, followed by a market-based emissions trading scheme in 2015 – with the aim of cutting 160 million tonnes of carbon dioxide from the atmosphere by 2020.

The carbon price will be accompanied by compensation for households and industry, new statutory authorities and extra funding for clean-energy projects, as well as a tender process to close down some of the dirtiest coal-fired power generators.

Mr Hockey said he did not believe it would be a problem removing compensation given to households and industries.

‘We have sent a very clear message to business that if you enter into an agreement with the government, do not assume that we will not come along and try to unwind it,’ he said.

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