FED: Gov't ducks $1,100 ETS bill again

AAP General News (Australia)
12-15-2009
FED: Gov't ducks $1,100 ETS bill again

CANBERRA, Dec 15 AAP - The federal government has again refused to deny families could
be lumped with an annual $1,100 bill under its proposed emissions trading scheme.

The government insists that any increase in the cost of living would be set by the
market and, whatever that price, families would be either fully or more than fully compensated.

By the coalition's calculations, the average Australian family would be hit hard in
the hip pocket if the government's carbon pollution reduction scheme was up and running.

On Tuesday, Labor frontbencher Tony Burke was following Prime Minister Kevin Rudd's
lead by refusing to directly address the $1,100 figure.

The market will ultimately set the price, he told Sky News.

"If you have a market system, then you have a market price on carbon," he said.

"If that price is higher, the compensation matches it.

"The bottom line for families is do they end up worse off ... and the answer is no."

Officially, the government is forewarning of an increase in the cost of living of between
1.1 and 1.9 per cent if emissions are reduced by five per cent.

But that's not enough information, the opposition says.

"(The government) needs to explain what (the price) is going to be," senior Liberal
Scott Morrison said.

"You can't give these blanket guarantees that no one will be worse off."

Mr Burke countered that under the coalition's climate change policy, there was no compensation
at all.

AAP cj/dep/bwl

KEYWORD: CLIMATE COST

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