Following an announcement by billionaire mining magnate and federal MP Clive Palmer, his Palmer United Party (PUP) will vote to stop Australia’s conservative Liberal-National government axing key climate change bodies, but will support repeal of Australia’s carbon price laws.
Mr Palmer’s support for repeal of the carbon laws, introduced two years ago by the then Labor government, is contingent on the Liberal-National government enshrining in law that any savings from the abolition are passed to consumers.
Mr Palmer’s announcements were broadcast live on national television from the Great Hall of the Australian Parliament House.
Flanked by climate change campaigner and former United States vice-president Al Gore, Mr Palmer announced the PUP would vote against the government’s bid to abolish or change the Clean Energy Finance Corporation (CEFC), the Renewable Energy Target (RET) and the Climate Change Authority.
The lower house MP said he was standing by an election promise to support efforts to get rid of the carbon price but with a significant caveat.
“True to our promises to the Australian people at the last election, Palmer United senators will vote in the Senate to abolish the carbon tax,” he said.
“In doing so, Palmer United senators will move an amendment that all producers of energy are required by law, not by choice, to pass on to all consumers of energy the savings from the repeal of the carbon tax.”
It is not clear how such a condition could be imposed on companies by the parliament.
Axing the carbon price laws was the major campaign platform and election promise for the conservative Liberal-National Prime Minister Tony Abbott during last year’s election.
Environment Minister Greg Hunt called a press conference shortly after Mr Palmer’s announcement, to hail the “signature” decision by PUP to back the carbon price repeal bill.
He said he was “relaxed” about the PUP leader’s plans and appeared willing to meet Mr Palmer’s demands on power prices.
“In terms of the question as to whether or not the full cost savings will be passed through to families, there are already guarantees in the legislation, however, we are willing to provide additional guarantees and to work with Mr Palmer and the Palmer United Party on any further legislative amendments,” Mr Hunt said.
As the largest voting bloc on the new micro-party cross bench in the Senate, PUP will hold the balance of power when the new senators take their seats on July 1.
Its power has been boosted by an agreement with Motoring Enthusiast Party senator Ricky Muir from the southern state of Victoria.
Mr Palmer also scathingly dismissed the government’s alternative climate change policy, the Direct Action scheme, which would use taxpayer funds to pay companies to reduce their carbon emissions.
The scheme has passed the lower House of Representatives, where the government has a majority, but is almost certain to be defeated in the Senate.
“Direct Action is a complete waste of money,” Mr Palmer said.
Instead, Mr Palmer said his party would move another amendment to set up a market based Emissions Trading Scheme (ETS), although Australia’s current fixed price ETS is set to move to a market based scheme in July next year.
However, under Mr Palmer’s version the ETS will “only become effective once Australia’s main trading partners, he listed the US, the European Union, China, Japan and Korea, also take action to establish such a scheme.
“Climate change is a global problem and it must have a global solution,” Mr Palmer said.
Mr Gore, a co-recipient of the Nobel Peace Prize with the Intergovernmental Panel on Climate Change in 2007 for his efforts to build awareness of the dangers of man-made climate change, said the announcement marked an “extraordinary moment”.
“It is so significant that Clive Palmer has announced that his party will support the continuation of the Renewable Energy Target and the continuation of the Clean Energy Finance Corporation and the continuation of the Climate Change Authority,” he said.
He praised Mr Palmer’s plans to fight for a new ETS in Australia but admitted axing the carbon tax was not favourable.
After the two men made statements Mr Palmer refused to answer any questions from the media, saying the two men needed to go to an “urgent dinner”.
The Australian Greens Party welcomed Mr Palmer’s move to support the retention of the climate change institutions it set up with Labor.
Party leader Senator Christine Milne has told the ABC TV’s 7:30 program that Mr Palmer needed to clarify his intentions regarding emissions trading.
“I don’t know whether Clive Palmer actually understands we’ve already got an emissions trading scheme, that it’s legislated, that it’s already linked to the European Union and that it’s working.
The opposition Labor Party has not indicated whether it will support Mr Palmer’s plan for an ETS.
A spokesman for Opposition Leader Bill Shorten said he would comment on the announcements by Mr Palmer tomorrow.
The text of Mr Palmer’s statement is here.