The coal industry should accept that no additional money will be provided under the pending emissions trading legislation, the federal government says.
Just a day after Greg Combet was sworn in as minister assisting the minister for climate change, he warned the coal industry to prepare for the inevitable.
Draft laws to set up an emissions trading scheme (ETS) from 2011 have passed the lower house and will be voted on in the Senate in late June.
But with the opposition vowing to vote against the legislation, the government needs the support of the Australian Greens, Independent senator Nick Xenophon and Family First senator Steve Fielding.
Mr Combet spoke on the issue of job losses and mine shutdowns in the coal industry at a function of the Committee for Economic Development for Australia (CEDA) on Wednesday.
"It's an area where, of course, the industry has very strong views so as to qualify as an emissions-intensive trade-exposed industry," he said.
"The government has not accepted that position and yes I can state to you that we're not likely to. I don't foresee that happening."
The government has committed $750 million in assistance to the coalmining industry.
But, Mr Combet said, the government had to balance outcomes for the coal industry with getting the legislation through the Senate.
"When a government is determined to prosecute legislation through the Senate it has to get support from somebody," he said.
He said Climate Change Minister Penny Wong was negotiating with Greens senators who are opposed to any financial assistance for the coal industry.
"And they are certainly opposed to any more assistance than the $750 million that is on the table now, and industry needs to be very mindful of this and focus very carefully on the priorities here," Mr Combet said.
During his speech, Mr Combet issued a blanket warning to all business sectors that will be significantly affected by the climate change legislation.
"I think in any prudent business environment, if businesses haven't been thinking about factoring in carbon prices into their investments, particularly in some of the most sensitive parts of the economy to this issue, then that's not been good business practice."
Senator Wong has dismissed Senator Fielding's hypothesis that global warming may be caused by the sun, not human activities.
Senator Fielding, who has returned from the US with new views on climate change, holds a crucial vote on emissions trading in the Senate.
"Solar flares does not explain the phenomenon that we are seeing," Senator Wong told ABC Television in relation to Senator Fielding's views.
Senator Wong said his theory was "erroneous".
She also warned crossbench senators that if they voted down the ETS, they would have to explain it to the voters.
Front page
RSS Feed