Who will pay for climate change?

The Federal government has served notice that it will bring back its carbon pollution reduction scheme after parliament resumes in February.

This inevitably raises the spectre of a double dissolution election, in the first half of 2010, as these bills, which have already been defeated in parliament, still have no clear path through the Senate.

The government took this – carefully calculated  – step when it released fresh data, which responds directly to Tony Abbott’s claim that the proposed scheme is just “a great big tax.”

The Acting Environment Minister Peter Garrett said, big polluters would have to pay, under the plan.

But everyone, who cut energy use or harmful emissions would be rewarded.

Mr Garrett’s main point, though, was that low income families would be more than fully compensated for the extra costs.

And half of Australia’s middle income earners would also be fully compensated.

He said Mr Abbott’s scare campaign was simply wrong.

In fact,  Mr Gattett said, Treasury modelling shows that  2.9 million Australians, who are on low incomes, would be better off under the government’s proposed plan.

On average, these families would be $190 a year in front.

But the Federal Finance Minister, Lindsay Tanner, also  said that people who are on  very high incomes,  like cabinet ministers, would not be compensated.

But the government left the main attack to Mr Garrett,.

“There are two simple facts nobody can avoid,” the former rock star said.

“The first is that there is no free way to tackle climate change.

“The second is that Mr Howard, Mr Costello, Mr Turnbull and the Rudd government all chose a carbon pollution reduction scheme to act on climate change.”

They had done so because this was the cheapest and most effective way to tackle climate change, as it puts a hard limit on emissions and funds compensation for families.

But the Opposition Leader persisted with his claim that the scheme is simply a tax.

“If the best the government can say is that 50 per cent of  of middle income earners will be no worse off, obviously a lot of people are going to be worse off under Mr Rudd’s great big tax,” Mr Abbott said.