Carbon scheme will push up energy prices

(AAP) - Prime Minister Kevin Rudd has conceded that a carbon emissions trading scheme would push up energy prices.

His admission came amid speculation the federal government is considering leaving
fuel out of its trading scheme until at least 2012 because of the impact on petrol prices.

Climate change dominated question time in parliament on Wednesday, with ministers
peppered with questions about the emissions trading scheme (ETS) due to begin in 2010.

Mr Rudd praised former prime minister John Howard for his courage in promising to
include the transport sector in any scheme - a promise which the coalition in
opposition has walked away from.

"Of course, the position adopted by the former prime minister is right," Mr Rudd told parliament.

"If you adopt a position of acting on climate change it does have an impact on energy prices. That is just the truth.
"He said it then, we say it now. What is the difference between us and them now? "We have a plan of action to deal with this in the future. Those opposite have
decided that this is a matter which they intend to turn into short-term political advantage."

Transport Minister Anthony Albanese mocked opposition environment spokesman Greg
Hunt when he asked about a newspaper report that cabinet had recently looked at a
proposal not to include fuel transport in the ETS until at least 2012.
He said transport had to be part of the government response but stopped short of
saying petrol should be included in the ETS.

Mr Albanese said Mr Hunt had been "sweating more than a sumo wrestler in a sauna" on
ABC TV on Tuesday and had made no sense in radio interviews since.
Treasurer Wayne Swan also took aim at Mr Hunt.

"This is a guy who has made a career criss-crossing the country in his hemp
underpants pretending to be the green conscience of the Liberal Party," Mr Swan
said.

Mr Hunt accused the government of hypocrisy for considering excluding fuel.
"This government has been caught in a lie on petrol and they cannot say one simple
thing. Do they want the price of petrol to go up or down?" Mr Hunt asked reporters.

"Our position is very clear. We want petrol prices to go down."
He said the opposition would decide whether petrol should be in the ETS or not when
it had more information.
The government plans to release a green paper on the ETS by the end of July and a
white paper by the end of the year, once economist Ross Garnaut hands down his
interim report on climate change strategy next Friday.
Professor Garnaut has previously advised the government it should deliver a
broad-based ETS which includes transport costs.
Mr Swan raised the prospect that the government might not accept all of the Garnaut
Review's proposals.

"We don't necessarily have to agree with every recommendation that is put forward by
Professor Garnaut," Mr Swan said.
"We will take our decision in the national interest."
The debate came as the Kyoto Protocol on climate change, which Australia ratified
last December, was formally tabled in parliament for consideration by the treaties
committee.