28-July-2009
Portfolio Media Releases, The Economy, Emissions Trading Scheme
Topics: Treatment of coal under the ETS, polls.
PETER CAVE: The Prime Minister and his senior ministers are heading for South Australia this afternoon for a Cabinet meeting and a community Cabinet forum in Adelaide tonight.
The Federal Government is staying silent on reports it's considering doubling the amount of compensation available to the coal industry under its proposed carbon pollution reduction scheme to $1.5 billion.
The coal industry has ramped up its campaign for more compensation, placing full-page ads in newspapers around the country, saying that it wants fair treatment.
From Canberra, Sabra Lane reports.
SABRA LANE: In two and a half weeks the Senate will vote on the carbon pollution reduction scheme and still the Government's sorting out the fine print; specifically, compensation for the coal industry. Other trade exposed industries like cement, aluminium and liquid natural gas will get free permits - between 60 to 90 per cent under the scheme.
The coal industry, though, isn't getting the same deal. It will get $750 million during the first five years of the scheme to help the industry adjust.
But the Coal Association's executive director Ralph Hillman says it's not enough.
RALPH HILLMAN: The Government has chosen not to apply its own criteria objectively to the coal industry. We qualified to receive the assistance that those other industries are receiving but instead of giving us 60 per cent permit allocation they're giving us a sum of money that amounts to 4.5 per cent of our emissions bill over 10 years. So it's really unfair and discriminatory treatment.
SABRA LANE: Nearly two months ago the ABC reported the Government was preparing to dramatically increase its offer. It was denied at the time but the speculation's resurfaced today that it will double its offer to $1.5 billion.
For months, the Coal Association's pressured the Government for more and today it started a national advertising campaign to prosecute its case that it's a large employer, that too many jobs will be lost under the scheme and that it's already committed $1 billion to cut greenhouse gas emissions.
Greg Combet, the minister charged with negotiating with the coal industry, has remained silent on that this morning. His office insists he won't talk about speculation.
Again, Ralph Hillman.
RALPH HILLMAN: No figure has been mentioned in talks. We've been talking about principles and industry issues and the structure of the CPRS policy and legislation. I know of no such figure. Of course if you look at a figure like doubling, that takes our assistance package from 4.5 per cent to 9 per cent while LNG, aluminium and others as I've mentioned are getting between 60 to 90 per cent. So it still looks unfair.
SABRA LANE: And the Opposition spokesman on emissions trading Andrew Robb says if the figure's true, it's well short of what's required.
ANDREW ROBB: It falls well, well short of the penalty that's going to be imposed on the coal industry relative to our major competitors. I mean, the United States bill and Europe for that matter, the European scheme, both exclude fugitive emissions, methane emissions, from coal mines and the Australian scheme will put a $5 billion tax on the industry in the first five years.
So there is no comparison and it underscores again the importance of Australia waiting until we see what the United States in particular will finalise in terms of emission trading scheme, otherwise we'll put ourselves from day one at a huge competitive disadvantage.
SABRA LANE: Where does the Coalition stand on this now? I thought last week the Shadow Cabinet had said it was prepared to negotiate with the Government ahead of Copenhagen. Are you now saying that that's now not the case?
ANDREW ROBB: Well again, last week Malcolm Turnbull stated very clearly that it is still our view that the common sense approach to all of this is to wait and see what comes out of Copenhagen and see what the Unites States does. And that is still our very strong position. What we did lay down was those areas that we would discuss if the Government's going to force a vote. We laid down very clear principles and propositions that we would discuss with the Government.
SABRA LANE: The latest Newspoll shows most people now want to delay a vote on the emissions trading scheme until after the Copenhagen talks in December, mirroring the Coalition's long-term stance.
Yet it seems voters don't like hearing the man delivering the message. Support for Malcolm Turnbull as the preferred prime minister has slumped to 16 per cent, a clear 50 points behind Kevin Rudd.
He's now in a worse position than when Dr Brendan Nelson lost the Liberal leadership last year.
Again, Andrew Robb.
ANDREW ROBB: Look I've got no doubt, as we prosecute the case against the Government over the next 12 months, that Malcolm Turnbull will become highly competitive, as will the Coalition itself.
SABRA LANE: But Andrew Robb surely the public - what it saw last week with open dissent, public bickering - that can't be doing the Coalition any favours.
ANDREW ROBB: Look, we've had our issues, I don't deny that. It's really one of the reasons why, you know, we are not in as strong a position as we would like to be. But all I'm saying is I've got total confidence in our ability to work as a solid team but more importantly our ability to expose what I think is the enormous inadequacies of the Rudd Government. They are all talk and no action. And I think as we prosecute that case over the next 12 months we will be in a very strong competitive position come the next election.
PETER CAVE: The Opposition's spokesman on the emissions trading scheme Andrew Robb, speaking there to Sabra Lane.
Media Contact: Nick Xerakias, 0410 417 173