AAP
The federal government has scrapped its planned floor on the carbon
price under a deal which links Australia to the European Union emissions
trading scheme (ETS), the world's biggest carbon market.
However,
Climate Change Minister Greg Combet said it would not create a budget
shortfall and households would still be compensated even if the price
falls.
Mr Combet told reporters Australia's price on carbon from
July 1, 2015 will be linked to the European Union ETS and the planned
floor price of $15 per tonne "won't be implemented".
He said a
second change would put a 12.5 per cent limit on the use of cheap Kyoto
carbon units, which can sell for a third of the cost of European units,
which are trading around $9.80.
"From 1 July, 2015, Australia's
carbon price will effectively be the same as that that operates in our
second largest trading bloc," Mr Combet said.
The carbon tax debate
Full linkage of the markets will occur no later than July 1, 2018.
Mr
Combet was asked if it would create a budget shortfall, rather than the
estimated $9.4 billion of revenue a market-based price was predicted to
generate in the 2015/16 budget.
"We stand by the budget as it was announced in May," he said.
"How
about we have a bit of trust in that, than some ridiculous allegation
made by (Opposition Leader) Tony Abbott about the impact of carbon
pricing."
Mr Combet said the government would not cut household
assistance payments and tax cuts set up to compensate for the price
impacts of the carbon tax in the economy.
"We committed to it and you might recall that there are further tax cuts that have been legislated from 2015 as well," he said.
Mr Combet had previously said a floor price would provide certainty, confidence and stability for business.
But business chiefs wanted to move to a fully flexible market price as soon as possible.
"This
delivers certainty to businesses that will have a liability under the
Australian scheme because they will have access to largest carbon market
in the world," he said.
"There are sophisticated markets that
have developed in Europe - futures markets that will give businesses a
great deal of confidence, access to financial organisations expert in
dealing with those matters to allow them to reliably predict what their
carbon price liability might be."
Under the full arrangement,
businesses will be allowed to use carbon units from the Australian ETS
or the European Union ETS for compliance under either system.
Mr
Combet said businesses would be able start buying European units from
Tuesday in order to comply with the scheme from July 1, 2015.
He
said it would not be in Australia's national interest for Mr Abbott to
scrap the scheme if the coalition wins power at the federal election due
in late 2013.
"This is a manageable, rational, reasonable economic and environmental reform," Mr Combet said.
"And he cannot, and will not, repeal it - this only demonstrates further why he won't."
But Mr Abbott said there would be a "huge hole" in the budget as a result of the decision and recommitted to scrapping the tax.
http://au.finance.yahoo.com/news/ets-change-won-t-hit-budget--compo--labor.html
JULIA Gillard says small businesses hit by carbon tax power price
hikes should pass costs on to consumers, who are getting compensation.-What about those who are not getting compensation? As long as back-stabbing Juliar gets hers, we can all go to blazers, which is a remarkably similar attitude to the evil warmonger, who may have had pre-knowledge on the 9/11 false flag, John Coward. And this happens the day after she and Roxon pass legislation that lets them spy on your private internet affairs. Is she worried about public perception? Or, is this another step towards the new world order.
But companies in some sectors have questioned the Prime Minister's advice-haven't we all?, saying they simply cannot lift prices.One apple and pear grower said its electricity bills now had a "carbon charge" attached that was more than 15 per cent for one packing plant, but the supermarkets it supplies won't accept price rises in a competitive market. More carbon tax concerns have been raised by small business owners after a Daily Telegraph survey revealed some retailers are starting to feel the pinch.
The survey found many businesses were not passing costs through to consumers despite being hit by carbon tax-related power price hikes.
In parliament, Liberal MP Sharman Stone asked Ms Gillard about Victorian pear and apple grower Geoffrey Thompson Holdings, which has specific carbon tax components added to its July bills, totalling $23,000.
Ms Gillard told parliament that businesses such as this could pass those costs through. Am I the only one who feels that she is out of touch with the common man? Reminds me of when that warmonger John Coward said that all Australian's could afford to buy a new car.
"That small business is dealing with consumers that have received tax cuts, family payment increases and pension increases because our anticipation is that small businesses would pass those modest price impacts $23,000 IS A MODEST AMOUNT TO THIS LIAR AND SERVANT OF THE ELITE. Most of us probably have that much or more in gold coins in the car ashtray. Especially those that are being raped on the dole. on," she said.
But Geoffrey Thompson Holdings managing director Garry Parker said that was not realistic because the company supplied major supermarket chains with fruit -- and they would not accept price hikes. That is the way supermarkets operate. The other thing that they like to do is make a deal with a company to get x amount of a stock at y price. Then, without warning they announce that they want to run a special and will only pay z amount. If the company refuses, they lose the contract. Now, should we expect that if I know this, that the "person in charge"-well behind the Governor-General, who actually is the Queen when she is out of Australia- ought to know this as well.
"We will have to look at ways of taking cost out of the business, we will look at staffing -governments love it when people are sacked and have to beg them for the dole-and other areas," he said.
http://www.dailytelegraph.com.au/news/prime-minister-julia-gillard-advises-business-to-pass-on-carbon-tax-price-rises/story-e6freuy9-1226454492044