TONY JONES, PRESENTER: Malcolm Turnbull has foreshadowed problems for Tony Abbott in introducing his direct action policy on climate change, suggesting it would face an intense opposition campaign like that against the carbon tax.

In a passionate defence of climate change science, he's likened supporters of the coal industry to big tobacco for discrediting the science of climate change.

Political correspondent Tom Iggulden reports.

TOM IGGULDEN, REPORTER: Malcolm Turnbull wants to take the politics out of climate change.

MALCOLM TURNBULL, OPPOSITION COMMUNICATIONS SPOKESMAN: The question of whether or to what extent human activities are causing global warming is not a matter of ideology, let alone of belief. The issue is simply one of risk management.

(Applause from audience).

When people suggest to you that climate change is not a moral issue, they're wrong. It is an intensely moral issue.

TOM IGGULDEN: What followed was an impassioned plea in defence of climate change action.

MALCOLM TURNBULL: In the storm of this debate about carbon tax, direct action and what the right approach to climate change should be, do not fall into the trap of abandoning the science.

TOM IGGULDEN: The former opposition leader recently warned that Tony Abbott's direct action climate change policy was designed to be easily dumped. Now he's saying the pressure to do so will be intense if Tony Abbott wins office.

MALCOLM TURNBULL: The opponents of the science of climate change will be criticising that expenditure too as pointless and wasteful with as much vehemence as they are currently denouncing Julia Gillard's carbon tax.

TOM IGGULDEN: In a blistering defence of the science of climate change, Mr Turnbull rounded on some sections of the campaign against Julia Gillard's carbon tax.

MALCOLM TURNBULL: Some people would say, I trust most would not, that as we have a vested interest in coal being burned, we should oppose action on climate change, and rather like the tobacco companies who sought to discredit the connection between smoking and lung cancer, muddy the waters on climate science in order to prolong the export billions from coal mining.

TOM IGGULDEN: The Government's been in a war of words with News Limited over its coverage of the carbon tax debate. The News of the World scandal in the UK has provided an opportunity for the Prime Minister to pressure Rupert Murdoch's Australian operation.

Now News Limited's calling on the Prime Minister to climb down from her Government's attack on its newspapers.

But she says the company's been pouring petrol on the fire sparked by her call for hard questions to be asked of it.

JULIA GILLARD, PRIME MINISTER: The CEO of News Limited in this country, John Hartigan, has actually been asking some of those questions himself.

TOM IGGULDEN: Two former Supreme Court judges are to guide an internal review into the financial dealings of News Limited journalists.

JULIA GILLARD: And he's asked that review to obviously pursue issues and questions that he thinks should be answered.

CAMPBELL REID, NEWS LTD EDITORIAL DIRECTOR: We are very, very confident that this audit will find and establish that our operations are above board.

TOM IGGULDEN: News Limited says the Prime Minister shouldn't be questioning its journalistic principals, that's up to the company itself.

CAMPBELL REID: What was exposed in the News of the World rightly calls us to make an investigation to assure ourselves that our processes are robust and above board.

TOM IGGULDEN: There's been little love lost between the media empire and the Government, which has been accusing Sydney's Daily Telegraph of bias.

CAMPBELL REID: I suspect that's because they are feeling the heat about the coverage of some of their policies.

TONY ABBOTT, OPPOSITION LEADER: And let's not have more attempts by Government ministers to bluff media organisations out of proper reporting of the Government's carbon tax disaster.

TOM IGGULDEN: Today the Government dusted off a three-year-old report calling for privacy laws, indicating it might go ahead with the recommendation.

JULIA GILLARD: People care about privacy, and so they should. They also care about freedom of the press, and so they should, so we'll obviously be seeking views on how these two things can best work together.

TOM IGGULDEN: Media companies are against the idea of privacy laws. So is Tony Abbott.

TONY ABBOTT: The last thing I want to do is support something which is a thinly-veiled attempt to intimidate the press.

TOM IGGULDEN: But it's not just editorial pages grabbing the Government's attention; a $10 million ad campaign targeting the carbon tax has hit newspapers.

PETER ANDERSON, AUST. CHAMBER OF COMMERCE & INDUSTRY: What we're doing is making sure the public is aware of facts and information about the impact of the proposal on the business community.

TOM IGGULDEN: An alliance of business lobby groups are behind the ads.

PETER ANDERSON: And what we will see is some businesses move into cheaper Asian nations, and that's not good for Australia, Australian jobs and our job security.

JULIA GILLARD: This just simply isn't true. Jobs in Australia will increase by 1.6 million by 2020 with our plans to put a price on carbon pollution.

TONY ABBOTT: It's only right and proper that people who are going to be damaged by the carbon tax should have their say.

TOM IGGULDEN: The truth's a pretty malleable concept at the best of times in the political contest. Questioning the impartiality of the umpire, in this case represented by the media, is a risky strategy to improve the Prime Minister's credibility.

Tom Iggulden, Lateline.