Carbon price announcement Sunday

The central plank of the Federal government’s proposed carbon tax legislation – its price – will be revealed on Sunday.

The Prime Minister, Julia Gillard, announced that tonight.

“After hearing a report on the discussions of the Multi-Party Climate Change Committee, Cabinet agreed tonight that sufficient progress had been made to allow an announcement date to be set for Sunday 10 July 2011,” she said .

Ms Gillard said “considerable common ground has been achieved” in the committee’s talks over recent weeks.

“This reflects the genuine commitment of members of the (committee) to tackle climate change to protect Australia’s environment and support the economy.

“While there will be additional discussions with the committee this week, followed by further Cabinet consideration, it is expected that the remaining details will be finalised in these discussions ahead of Sunday’s announcement,” she added.

“The Gillard Government’s priorities in designing the carbon price have been cutting pollution, protecting household budgets, and supporting jobs,” the Prime Minister said.

“A carbon price is an important reform that will create incentives to lower Australia’s carbon pollution at the lowest cost to the economy,” she added.

“It will do this by putting a price tag on the pollution of fewer than 1,000 businesses,” she said.

“More than half the revenue raised will be used for tax cuts and increased payments to households, which will be generous, fair and permanent and will keep pace with cost impacts from the carbon price in the future.

“After announcing the policy the Government intends to introduce legislation to Parliament later this year.

“This will be an opportunity for all MPs to decide whether they accept the scientific advice that climate change is real and whether they accept the economic advice that a market mechanism is the cheapest and most effective way of reducing pollution.”