Independent senator Nick Xenophon has flagged supporting a repeal of the carbon tax if Opposition Leader Tony Abbott wins the next election, but only if there is a satisfactory alternative.
Over the past 12 months Mr Abbott has repeatedly pledged to get rid of the controversial carbon tax, claiming it will astronomically increase the cost of living.
Senator Xenophon believes it should be replaced with something else.
“You need to have an alternative in place because both the government and the coalition (have) committed to a reduction in carbon emissions by 2020,” he told Sky News on Sunday.
“The question is, we need to have a sensible, robust debate in this country… what is the most effective way of reducing emissions, in economic terms, in terms of getting your best environmental bang for your buck … .”
From July 1, the government will make less than 500 of Australia’s biggest polluters pay an initial $23 for every tonne of carbon they put into the atmosphere.
This will be followed by a market-based emissions trading scheme in 2015.
The aim is to cut 160 million tonnes of carbon dioxide from the atmosphere by 2020.
Climate Change Minister Greg Combet says Senator Xenophon’s comments mean there must be greater scrutiny of the opposition’s so-called direct-action policy which focuses on storing carbon in soil and vegetation.
“Senator Xenophon has put the spotlight on the coalition to explain how it can achieve Australia’s bipartisan target of reducing carbon pollution by five per cent by 2020,” a spokesman for Mr Combet told AAP in a statement.
“Tony Abbott’s direct action policy is widely regarded as lacking all credibility because it would impose high costs on the economy and slug families $1300-a-year in extra taxes without being environmentally effective.”
Senator Xenophon has long opposed Labor’s carbon pricing regime and voted against the legislation which passed the upper house in November 2011.
In particular, the South Australian independent is concerned about the impact of the regime on electricity prices.
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