Gillard banks on carbon common sense

Prime Minister Julia Gillard says Australians are a “commonsense people” and will accept carbon pricing, which starts on July 1, as the latest in a long line of economic reforms.

But Opposition Leader Tony Abbott says the Labor leader’s broken promise not to introduce a carbon tax is a “political crime that gnaws at the prime minister every day”.

The exchange came on the federal parliament’s last sitting day before 294 Australian businesses and councils begin paying the $23/tonne price on carbon pollution, with flow-on effects to small businesses and consumers.

Mr Abbott unsuccessfully attempted to censure the prime minister, who took the rare step of staying in the chamber to witness the verbal attack.

“There is a deep and lasting consensus that this is a bad tax and we can’t trust a single commitment that this prime minister gives,” Mr Abbott said, ahead of parliament’s winter break in which he will vigorously campaign in marginal seats.

Waving a Labor pamphlet titled Abbott’s Little Book of Deceit, Ms Gillard said the opposition leader’s days of “going out there and making it up” were about to end.

“Australians are a commonsense people even in days when they have been worried about big reforms,” Ms Gillard said, citing the floating of the dollar and native title.

“Australians who want to bequeath a planet to future generations with less carbon pollution will be able to know their nation is taking the appropriate steps to achieve that.”

Treasury estimates the carbon price will add about 0.7 per cent to consumer prices in 2012/13, with most households compensated through tax breaks, pension rises and extra family benefits.

Parliament descended into farce when Trade Minister Craig Emerson accused Mr Abbott of being Chicken Little and took out a measuring tape.

“We will be checking the height of the sky because Chicken Little will be proved wrong,” Dr Emerson said.

Coalition MPs waved pamphlets warning of price rises by small businesses, mainly because of higher electricity prices under the carbon tax.

Assistant Treasurer David Bradbury said the competition watchdog would be monitoring businesses and seeking fines of up to $1.1 million for the most serious breaches.

Climate Change Minister Greg Combet said Coles and Woolworths had ruled out price rises from July 1, absorbing the carbon price cost through energy savings.

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