Many in Australia are still grappling with the implications of the new found views on climate change policy adopted by federal MP and leader of the Palmer United Party (PUP) Clive Palmer.
Already business has expressed concern that Mr Palmer’s stance on carbon pricing is likely to create uncertainty that will stifle investment and dampen jobs growth.
The Australian Chamber of Commerce and Industry (ACCI), a long-time opponent of the carbon price laws, has welcomed the PUP leader’s decision to support repeal of the impost.
However, ACCI CEO Kate Carnell has expressed concern that Mr Palmer has flagged support for some form of global Emissions Trading Scheme (ETS).
The party seemed to be taking Australia one step forward and one step back, she told reporters in the national capital, Canberra.
While welcoming the opening of a meaningful dialogue between Mr Palmer and Prime Minister Tony Abbott, Ms Carnell warned business would suffer from a new period of uncertainty.
“That uncertainty will no doubt stifle investment, and dampen jobs growth,” she said.
At the same time economist and carbon pricing expert Professor Ross Garnaut said the PUP’s position to vote to retain the Renewable Energy Target (RET) and other key climate change bodies would have “important” and positive effects.
“We’re in a better position than we were before this news,” he told the ABC TV’s 7.30 program.
Meanwhile conservative Liberal-National Prime Minister Tony Abbott has said he will consider the details of Mr Palmer’s climate plan after “constructive” talks with the crossbench maverick.
The PUP will back the repeal of the carbon price only if legal guarantees are in place to ensure energy companies pass on savings to consumers.
Mr Palmer wants the retention of key climate bodies, set up by the previous Labor government, which the coalition government was planning to shut down.
He also wants the retention of the RET, which the government currently has under review and with which it is widely thought to want to do away with.
As result of the PUP announcement, the carbon price repeal has been passed through the lower House or Representatives, but debate will continue about a future pricing mechanism and when it should come into force.
The tax’s repeal legislation passed the lower house yesterday and, with a helping hand from Palmer United Party senators, is set to pass the upper house in July.
Mr Abbott still needs to juggle the policy victory with Mr Palmer’s plan for an ETS drafted with a zero-dollar starting price, to be activated when Australia’s trading partners set a price.
Mr Abbott has previously labelled an ETS as a carbon tax by another name.
He also faces a growing international consensus that a pricing mechanism on carbon is inevitable.
