Oakeshott wants carbon debated at tax summit

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This was published 13 years ago

Oakeshott wants carbon debated at tax summit

By Katharine Murphy

THE Gillard government is facing fresh turbulence on its carbon-pricing policy from the crossbench, with independent MP Rob Oakeshott declaring the issue should go to a looming tax summit.

Mr Oakeshott told The Age yesterday that the tax discussion, due soon, should be ''as broad and comprehensive as possible'' - taking in the carbon tax debate as well as the GST ''if we are being fair dinkum''.

The New South Wales independent was promised a tax summit by June 30 as part of his agreement with Julia Gillard to form minority government. The government has tried to limit the scope of the discussion, ruling out the GST and arguing there is an existing forum to consider climate policy.

But Mr Oakeshott insisted a broad-ranging discussion should proceed despite a strong campaign from the opposition against new taxes: ''We are here to do a job. I don't think we should be too shy about that.''

Mr Oakeshott's intervention potentially complicates the government's efforts to assert some control in the debate, and it follows sharp criticism in the past 24 hours from fellow independent Tony Windsor that the government botched its initial salesmanship on the carbon price by announcing a framework without detail.

Opposition Leader Tony Abbott, meanwhile, yesterday took his campaign against the tax into the Prime Minister's Melbourne electorate. He visited a steel plant as part of a series of public events and radio interviews designed to highlight his opposition to the tax - winning a rebuke from prominent union boss Paul Howes, who declared he would visit the same plant this morning to tell workers the ''truth''. A One Steel spokesman appeared unaware of Mr Howes's looming visit and declined to comment.

Mr Abbott won a positive reception from some outlets but faced a tougher time on Melbourne radio, pressed over the detail of his direct action plan and his claims that Australia would move ahead of the world if it implemented a carbon price. The EU has a long-established carbon market.

Resources Minister Martin Ferguson told reporters the government would face a much tougher debate in five years if it did not deal with the carbon price issue, because there was not enough investment in electricity generation.

Acting PM Wayne Swan said the government was seeking a consensus. ''We are having a vigorous public debate and that's important,'' he said.

''Big economic and environmental reforms like this are always hard fought in our country, so we should expect that.

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''But I can tell you this: the government won't run away from that debate.''

Following the PM's poll slump this week, a survey also pointed to a slump in consumer confidence in the wake of news the government would implement a carbon price by 2012.

With RICHARD WILLINGHAM

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