Palmer’s 11th-hour backflip has sparked a new fiscal crisis for the government. Source: Supplied
CLIVE Palmer has become the wrecking ball of Australian politics, carving a further $10 billion hole out of the federal Budget this week with a series of stunts that senior Coalition members now claim are based on one motive only — to destroy the Abbott government.
Yesterday the erratic mining baron and member for Fairfax spectacularly reneged on a second promise to support the repeal of the carbon tax, with three of his PUP senators voting with the Greens and Labor to defeat the bill.
The 11th-hour backflip has sparked a new fiscal crisis for the government, which now faces the possible blockage of an estimated $55 billion in Budget measures.
It is also the second rejection by the senate of a bill to abolish the tax, providing yet another trigger for Prime Minister Tony Abbott to call a double-dissolution election.
But with the carbon tax set to dominate parliament again next week — the last before the winter break — there are fears that crucial national security legislation due to be introduced next week may be delayed until later in the year.
Mr Palmer, who last night walked out of an interview on ABC’s 7.30, justified his party’s decision to vote against the repeal of the carbon tax by accusing the government of failing to circulate his amendments to impose penalties on companies that failed to pass on cost savings to consumers, which the government had agreed to at 9.30am.
Coalition sources, however, now fear Mr Palmer is deliberately attempting to scuttle the bills after it was revealed his amendments were unconstitutional, as they were drafted as a tax instead of a penalty and would not have been able to be introduced into the senate anyway.
While the government was careful not to antagonise Mr Palmer, ministers concede privately they’re at a loss as to how to deal with him.
The government will reintroduce the bills to the lower house next Monday, with Mr Palmer’s amendments for 250 per cent fines for companies who fail to pass on savings.
It will attempt to gag debate to ensure the bills are able to reach the senate again by Monday afternoon, where a guillotine will be used to bring on an immediate vote. Government sources conceded that if it failed for a third time to get the repeal bill passed, the promise to axe the tax could be doomed.
“If it doesn’t pass Monday, then it will be a sign that Palmer is not interested and he is just playing politics,” a senior source said.
This week, Mr Palmer has exacted demands that would punch a further $10 billion hole in the Budget — including threats to block government bills to abolish income tax cuts, low-income compensation measures and abolition of the school kids bonus.
Ricky Muir, the Motoring Enthusiast senator from Victoria, is also demanding the government retain the Australian Renewable Energy Agency, punching a further $1.5 billion hole in the budget savings.
The government claims the total Budget measures under threat from a coalition of Labor, Greens and PUP senators threatening to block various bills has reached $55 billion — more than the deficit it was left with by the former Labor government.
Environment minister Greg Hunt warned the carbon tax needed to be repealed sooner rather than later to achieve savings for consumers, with business and power companies in limbo. “At the moment, every day is an $11 million cost in power bills to families and businesses but it is also important that the markets are given the certainty and we are hopeful, and we believe that it is necessary, that these bills should be passed by the end of next week,” he said.
PUP senators Glenn Lazarus, Jacqui Lambie and Dio Wang voted with Labor and the Greens to defeat the repeal bills yesterday. The Greens welcomed the vote.
The Business Council of Australia said the delays were causing uncertainty, releasing data showing the carbon tax was responsible for 20 per cent of the electricity bill of a large business and 6 per cent for a typical home.
BCA president Catherine Livingstone said: “Repealing the carbon tax must be the first step in reducing Australia’s electricity prices and developing a coherent and integrated energy and climate change policy that maintains our competitiveness and energy advantages while helping Australia to contribute to global emissions reductions. Failure by the parliament to repeal the carbon tax by next week will create significant uncertainty for businesses.’’
source:news.com.au
STUDIO 3 NEWCASTLE AUSTRALIA 