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Full fuel picture not clear yet

Motorists were always going to have to be protected under the carbon tax. The government couldn't, politically, afford to have any other position - and neither could key country independents Tony Windsor and Rob Oakeshott.

There's no doubt the Greens, who'd like petrol covered, would have to concede this point. Bob Brown knew this and has been signalling as much for months.

We haven't got the full picture on fuel yet. The government is releasing only half droplets of information about its carbon plan. So we know that about 12 million motorists, including tradespeople and families, will be protected. But some - as yet unspecified - industries will be hit. The government has given out the good news while keeping back the painful aspect.

The motorists' exclusion weakens Opposition Leader Tony Abbott's scare campaign. On the other hand, the Greens have won a concession that gives some ammunition to Abbott. The deal includes a Productivity Commission inquiry, reporting after three years, to examine fuel excise (in the Greens' words) ''with a view to shifting the tax base onto the carbon and energy content of fuel''.

Greens leader Bob Brown yesterday made it clear that ''down the line'' he thought it inevitable that ''all fossil fuels will . . . pay the full cost of the creation of climate change''. That's what the Greens will be advocating.

But Prime Minister Julia Gillard said yesterday: ''The design of this scheme is that petrol pricing will be out now and out for the future.''

Talk by the Greens or the government about the long-term future - or for that matter by the Coalition - has an air of unreality. But the immediate political point is that the Greens' comments and aspirations about eventual inclusion of petrol undermine the reassurance Gillard wants to give motorists that they'll be protected forever.

The Greens have to talk up the concessions they have got - which also will include some big money for renewables - because their compromises on petrol and other things will disappoint the purists among their base. Labor and the Greens have common interests in the carbon price deal but separate ones too, which will be at odds.

Michelle Grattan is Age political editor.

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Date: Newest first | Oldest first
What a waste of time and effort.

With so many exclusions and compensations this "great big new tax" is going to be be the biggest "money-go-around" you have ever seen. The only winner will be public servants who can shuffle more paper at great cost to the poor tax payers.

As for the carbon tax making people chose the cheaper alternative - yer right. What idiots do we have in goverment!

Posted by WhataWaste, 4/07/2011 9:34:18 AM
This proves absolutely that even the government knows 'Global Warming' is nonsense.

Meanwhile we who don't drive cars and bicycle wherever we can get NOTHING!

Shame on you Greens! I always thought you were hollow.

Posted by SvetlanaBabe, 4/07/2011 11:57:59 AM
even according to the science this tax wont ever do anything for global temps no matter how its structured
Posted by hot air, 4/07/2011 1:11:47 PM
Now the only sensible option remaining is to encourage solar, wind, hot rock & tidal energy technology rather than pay coal corporations about $800 million per year allegedly chasing the thermodynamic pipe-dream of carbon sequestration.
Posted by Machiavelli, 4/07/2011 4:43:24 PM
Labor are only cutting the carbon tav for fuel to get the independants support, if they had the numbers they wouldn't have excluded it as their good professor wanted it in. Do they think people are that stupid they can make them think it was really their idea to leave it out?
Posted by hadenough, 4/07/2011 5:17:02 PM
how on earth would anyone believe a single word that comes out of the mouth of these idiots the have an agenda to brake Australia's economy and its got nothing to do with the climate it is a tax grab and nothing more. I cannot stand the sight of their smug faces sitting there telling us how we need to pay this tax to save the climate do they think we all that easy to fool just keep telling us and we will soon come to accept it NOT IN MY LIFETIME
Posted by charlotte, 4/07/2011 10:19:30 PM
If Carbon TAX on petrol must not be charged because consumers cannot afford it, how would consumers afford Carbon TAX on electricity and food as the TAX trickles down the supply chain with profits and transport costs added before consumers pay the inflated TAX + GST?

Why will 10% of the TAX be sent to the UN?

This is a revenue grab, and the TAX an exercise in futility as China continues to increase their emissions every year by more than our total emissions.

This TAX will MUG the economy and cause us considerable financial pain, and the pain is set to increase in years ahead.


Posted by JohnT, 5/07/2011 10:37:46 AM
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