Last-minute fine-tuning as carbon price vote nears

The government has done some last minute fine-tuning to its carbon price scheme before it is passed by the House of Representatives on Wednesday.

Getting the legislation through the lower house will be a big milestone for the government, but the fate of Labor’s bill to validate the Malaysia people swap hangs in the balance, with West Australian National Tony Crook still to say how he will vote. Mr Crook, who had talks with Prime Minister Julia Gillard and immigration spokesman Scott Morrison last week, is to have more discussions with both sides before Thursday’s debate.

Leader of the House Anthony Albanese said yesterday the government’s intention was to bring the bill to a vote that day, ”although we don’t have the numbers to gag debate on bills”. Even if the bill passes it will be defeated in the Senate.

In two significant changes to the climate plan, the aviation industry has asked to come directly under the carbon price and, in a concession that will help local government, all small rubbish tips will be exempted.

Climate Change Minister Greg Combet said he had spoken last week to independent MPs Tony Windsor, Rob Oakeshott and Andrew Wilkie - whose votes will ensure the legislation passes the House - ”just to make sure we were on track”. They are continuing to discuss some issues about regulations to be made under the scheme.

The government is also increasing its political pressure on Tony Abbott over legislation, associated with the carbon price, for a $300 million package to help the steel industry. The opposition is against the initiative, but the measure is likely to get through eventually with the reluctant support of the Greens.

A number of large fuel users, especially Qantas and Virgin, have said to the government they would prefer to be directly under the scheme rather than, as initially planned, pay the equivalent carbon price through the fuel taxes.

The change will be made through opt-in arrangements for large fuel users. Most eligible companies would already be paying the carbon price but there are about 20 more companies for which it would make commercial sense. Opting in will give these firms benefits under the carbon scheme, including access to credits under the carbon farming initiative.

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