ID :
193723
Fri, 07/08/2011 - 13:13
Auther :

Talk of $23 carbon price intensifies

SYDNEY (AAP) - July 08 - An independent authority has been established to manage $3.2 billion of renewable energy funding, as further details continued to trickle out ahead of Sunday's national carbon tax package.
Speculation that the initial carbon price will be $23 per tonne intensified on Friday, a level that Australian Greens deputy leader Christine Milne did not dismiss when questioned by journalists.
"As we have indicated many times, the price will not be high enough to drive the transition to renewables and that's why we have argued so strongly for a price `plus'," she told reporters in Canberra on Friday.
Senator Milne said the establishment of a new independent body, the Australian Renewable Energy Agency (ARENA), is part of that package agreed by the Multi-Party Climate Change Committee (MPCCC).
The MPCCC includes the Labor government, Greens and two independent MPs.
ARENA will dispense the $3.2 billion of funds as it sees fit in order to best support renewable energy research, development, commercialisation and demonstration, she said.
"It has been obvious for years that renewable energy programs in Australia are a mess of badly designed schemes run as photo opportunities rather than helping build the industry," Senator Milne told reporters in Canberra.
"ARENA will change all that."
But Energy Minister Martin Ferguson and Climate Minister Greg Combet rejected Senator Milne's suggestion that little had been done in the past.
"The government has a strong record of delivering support to our renewable sector and ensuring that Australians get value for money on their investments," the ministers said in a statement.
"The establishment of ARENA will build on this record."
ARENA will take on responsibility for a range of renewable projects including the Australian Solar Institute and geothermal drilling operations.
Other details of the package that have emerged this week are that petrol will be excluded from the carbon tax, with suggestions that the diesel fuel rebate will be cut.
Nationals senator Fiona Nash said there was no justification for changing the rebate.
"The prime minister (Julia Gillard) will have the wrath of regional Australia on her doorstop if she moves to move one cent away from this diesel fuel rebate," Senator Nash told reporters in Canberra.
She said any changes would simply "be a cash grab" to be able to put towards compensation to pay off other parts of industry to garner support for the carbon tax.
Opposition Leader Tony Abbott said even if petrol was exempted from the carbon tax the price at the bowser would still go up because of the increase in transport and power costs.
"You can't trust this prime minister to look after your interests, and whatever the prime minister says, the price of petrol is going to go up under this government and its carbon tax," Mr Abbott told reporters in Brisbane.

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