Liberals gone mad

Labor rejoices its carbon tax victory - but will it be a kiss of death?

 

IT was an embrace that sealed the vote on Julia Gillard's carbon tax. Not surprisingly, opposition MPs have dubbed the moment the "Judas Kiss".

By Alison Rehn

But it was a kiss between rivals that left an air of impending political death hanging over the Prime Minister's leadership.

Kevin Rudd yesterday ensured that the final and lasting image as Labor MPs celebrated their political victory was his continuing ambition to reclaim the job that was taken from him last year.

Not surprisingly, opposition MPs have dubbed the moment the "Judas Kiss". And it did nothing to dampen talk among Labor ranks of a possible Rudd challenge by the end of the year, or early next. Savouring what she could of bedding down a policy that polls show the majority of the electorate opposes, Ms Gillard hailed the vote as a historic step forward.

The government's 18 Clean Energy Future bills passed the lower house at 9.37am with a majority of just two votes - and with the critical support of independents Tony Windsor and Rob Oakeshott, and Greens MP Adam Bandt.

With the bills only requiring a rubber stamp from the senate next month, Australia is assured of becoming the first country in the world with an economy-wide carbon tax by July 1.

Ms Gillard said Opposition Leader Tony Abbott had voted to be on the wrong side of history and would be judged harshly by future generations.

"This is a significant day for the Australian nation, not only for Australians today but for the generations of children to come who will live in a cleaner environment as a result of today's legislation," she said. "It's been a difficult debate but the debate is now concluded."

Mr Abbott vowed to continue to fight against the tax and made a pledge "in blood" to repeal it if he won office.

"I am giving you the most definite commitment any politician can give that this tax will go. This is a pledge in blood this tax will go," Mr Abbott said.

The day wasn't without drama, when dozens of protesters were ejected from the Parliamentary public gallery after shouting down the PM with chants of "No Mandate" and "Democracy is Dead".

Ms Gillard continued to press for the $23 a tonne tax - which will convert to a floating price emissions trading scheme in 2015 - as an economic and environmental transformation.

Although agriculture and petrol will be excluded, a Productivity Commission report recently found the tax would be one of the most comprehensive carbon pricing schemes of any comparative nation.

According to government figures, compensation will ensure 90 per cent of households will be either fully or partly compensated for the estimated $9.90 a week rise in the cost of living.

The government claims it will reduce emissions by 160 million tonnes of carbon a year - the equivalent of taking 45 million cars off the road.

An emissions trading scheme was supported by former prime minister John Howard and former Liberal leader Malcolm Turnbull and is the second attempt by Labor to introduce a carbon price.

The government's related $300 million steel transformation plan was also passed with the additional support of Queensland independent Bob Katter.

"This is a historic part of the political process in this country and, boy, are we happy." Greens leader Bob Brown said.