Carbon tax passes lower house

EVERYONE'S had something to say about it, and whether they want it or not, the first step to the Federal Government's Carbon Pricing Scheme becoming a reality was taken yesterday.

Federal politicians in the House of Representatives, the lower house of Federal Parliament, voted on 19 bills yesterday morning, with Labor winning backing for 18 bills in its carbon tax package by 74 to 72 votes.

The party also won backing for a separate bill setting up a $300 million compensation package for the steel industry by 75 to 71 votes, with north Queensland independent Bob Katter backing the bill.

Australia will begin talks next month with other countries to link Labor's carbon pricing regime to global carbon markets, following the historic passage of the government's legislation through the lower house.

Labor secured the support of the Greens and independents in the House of Representatives to pass the government's package of 19 bills.

The package - which will put a fixed $23 a tonne price on carbon from July 1 next year before moving to an emissions trading scheme in 2015 - will now go to the Senate where they are expected to pass with Greens' support on November 21.

Federal Member for Flynn Ken O'Dowd dubbed yesterday as 'betrayal day'.

"The carbon tax will cascade through the economy like a toxic waterfall and increase the cost of living for every Australian family. It will hurt small businesses, it will make Australian exporters less competitive and it will cost jobs," he said.

Capricornia Member Kirsten Livermore said the passing of the bills represented one of the most important environmental and economic reforms in Australia's history.

She said the separate steel bill, Steel Transformation Plan, was additional support for the industry facing other pressures not linked to the carbon price.

Reaction

• "No mandate. Democracy is dead." - The chants of about 100 people who were evicted in five groups from the public galleries of the lower house during question time for disrupting parliament.
• "It's been a difficult debate but the debate is now concluded." - Prime Minister Julia Gillard.
• "This is a pledge in blood - this tax will go." - Opposition Leader Tony Abbott vows to get rid of the carbon tax if the Coalition wins government.