Carbon tax will inspire people's revolt: Abbott
Updated 1 hour 48 minutes ago
Tony Abbott says the policy will slug Australians with huge costs. (AAP: Alan Porritt)
Opposition Leader Tony Abbott says Julia Gillard's announcement of a carbon price is a "betrayal of the Australian people" and predicts a "people's revolt" in response.
Ms Gillard says the Government's scheme will be rolled out from July 2012, with the price on carbon to be fixed for a period of three to five years before moving to a cap-and-trade system.
The issue dominated a combative Question Time, which saw the Opposition attempt to censure the Prime Minister and Coalition MP Bronwyn Bishop was expelled from the chamber.
Mr Abbott said Ms Gillard's decision to put a price on carbon was a historic betrayal of the Australian people.
"Nothing is more fake than making a promise to the Australian people before an election and breaking it after the election," he said.
"There has been no greater betrayal in recent history."
He says the policy will slug Australians with huge costs.
"We will fight this every second of every minute of every hour of every day of every week of every month," he said.
"I don't believe it's going to happen because I think there will be a people's revolt. They will see this as an assault on their standard of living, which is exactly what it is.
"Every time you turn on the lights, you will pay under Labor's carbon tax. Every time you go to the petrol pump, you will pay under Labor's carbon tax."
But Ms Gillard says the election has given her the mandate to introduce a carbon price.
"The Australian people have voted for change. They voted for a carbon price, and this Parliament gives us the opportunity," she told Parliament.
"Increasingly Australians understand that the Liberal Party, under the Leader of the Opposition, is a party of the past with no real policies or plans for the nation's future.
"You get judged ultimately in this Parliament by what you decide to do and what you deliver, and on this side of the Parliament we are determined that from July 1 (2012) we will price carbon."
While admitting her policy would result in an increase in the cost of living, Ms Gillard says households will be fairly compensated under the scheme.
"Every dollar raised from pricing carbon will go to assist Australian households, assist Australian families with managing the change, assist Australian businesses with managing the change, and to programs for tackling climate change," she said.
'Start of process'
The Prime Minister announced details of the scheme at a joint press conference with Greens leader Bob Brown and Senator Christine Milne, as well as independent MPs Rob Oakeshott and Tony Windsor.
The carbon price will increase annually and funds generated will be used to compensate households and increase energy efficiency in the economy.
Agricultural emissions will initially be excluded from the scheme but farmers will be compensated for any efforts they make to cut emissions.
The Government is expected to announce more details of the plan, including the initial price, at a later date.
Senator Milne called the framework agreement a victory for minority government.
"It's happening because we have shared power in Australia. Majority government would not have delivered this outcome," she said.
But Mr Windsor warned his presence at the announcement did not mean he would support any legislation.
"This is very much the start of the process in my view. There's a lot of discussion to take place on this issue. What we've established today is a framework," he said.
"That doesn't mean the game is over... don't construe, through my presence here, that I'll be supporting any scheme."
And Climate Change Minister Greg Combet warned the major stumbling blocks of compensation and pricing remain before the committee.
The main points are:
* Fixed carbon price to be implemented on July 1, 2012
* Price to be announced at a later date, but will increase annually
* Fixed price to remain for three to five years before switching to cap-and-trade system
* Level of compensation for business and consumers still to be determined
* Agriculture to be excluded from carbon price
