Carbon tax repeal: Senate debate postponed by Government as MP Andrew Laming casts doubt on savings touted by Tony Abbott

Updated

Debate on scrapping the carbon tax has been postponed by the Government in a move likely to mean there will be no final Senate vote on the legislation today.

There was widespread expectation the tax would be killed off by the Senate before it adjourned tonight.

The bills were passed by the House of Representatives late yesterday and were listed to be considered first by the Upper House when it resumed at 12:30 AEST today.

However, Leader of Government business in the Senate Mitch Fifield moved to vary the order of business to bring on debate about the mining tax instead.

He indicated talks about the repeal of the carbon tax were continuing with minor parties.

"There will be further discussions through the course of the afternoon," he told Parliament.

"The Government is endeavouring to work cooperatively with colleagues in this place as far as possible to endeavour to reach agreement as to how to proceed to ensure this package of legislation is dealt with."

A statement from the Prime Minister's office says the carbon tax debate has been held up by a need to negotiate with crossbench, Labor and the Greens over other legislation to be considered by the Senate.

"As soon as this has been broadly agreed, the motion will be put that will enable the carbon tax bills to be brought on for debate," the statement said.

The Government has also sought to extend sitting hours for the Senate to ensure the agreed legislation is passed before the five week winter recess.

Palmer United Party (PUP) leader Clive Palmer says he does not know why the Government is delaying the vote.

"I can't tell you because I'm not the Government, of course, but I can tell you I expect it to happen late tonight or early tomorrow morning," he said.

Last week, the Government moved several times to gag debate and have the legislation dealt with urgently.

Its bid to have the tax repealed last Thursday was skewered by the PUP senators, who withdrew their support for the legislation, claiming they had been "double-crossed" by the Coalition over a key amendment.

Senior ministers have repeatedly sought to pressure the Senate to quickly pass the bills, because any delay was costing households money.

"Every day that repeal is delayed is costing Australian pensioners low income families and small business owners among others, $11 million a day in additional avoidable electricity and gas costs," Environment Minister Greg Hunt said yesterday.

"It's costing the Australian economy more than $20 million a day."

Government MP casts doubt on savings from carbon tax repeal

Earlier today, a Government MP cast doubt on the figures used by the Prime Minister in outlining expected household savings as a result of the repeal of the carbon tax.

Throughout the months of debate about the tax, Prime Minister Tony Abbott has claimed that households will benefit by an average of $550 when it is scrapped, saying gas prices will fall by 7 per cent and electricity prices by 9 per cent.

But the Liberal member for the outer Brisbane seat of Bowman, Andrew Laming, says households may not gain the full $550.

"It will be $550 lower than it otherwise would be, but if other elements have made prices go up by $100 then you won't see a $550 fall on any bill," the backbencher said.

"But you'll be $550 better off than you otherwise would have been, and that's a very important caveat."

Greens Deputy Leader Adam Bandt disputes the claim entirely.

"If anyone believes that their household is going to be $550 a year better off as Tony Abbott has promised, I've got a bridge to sell you," he said.

"It's just not going to work like that. Any savings that people do get are going to be very small and are going to be dwarfed by the other cuts that are going to come in Tony Abbott's budget."

The Opposition has attempted to catch out the Government over previous claims Coalition MPs have made about the costs of imposing the tax and the savings made by axing it.

But yesterday Mr Abbott said he "absolutely" stood by the figures.

"The carbon tax is a 9 per cent impost on power bills," he told parliament in Question Time.

"It is a $9 billion handbrake on our economy and it adds $550 a year to the cost of the average Australian household.

"So every single Australian should be better off when the carbon tax is gone."

Topics: federal-government, government-and-politics, tax, environmental-policy, climate-change, environment, australia

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