Labor battens down as climate gets cloudy

Labor has written off a drop in support for the Gillard government over the carbon tax as short-term pain.

The carbon tax is being blamed for Labor's primary vote dropping to its lowest level in 15 years and Prime Minister Julia Gillard's personal rating sinking to its worst level since she took the leadership last year.

The poll came as more than 40 companies and industry organisations wrote to the prime minister asking for guarantees that putting a price on carbon would not disadvantage Australian companies in the global market.

"A carbon pricing scheme that fails to include measures to fully preserve the international competitiveness of Australia's export and import-competing industry ... will cost jobs, investment and reduce the living standards of all Australians," they said in the letter.

The letter followed calls by union leaders last week for job guarantees in manufacturing and steel making.

Labor federal frontbencher Anthony Albanese told reporters in Canberra that the public, unions and business leaders wanted action on climate change and would eventually swing behind the government.

"We know that change is often difficult, but we are determined to implement it ... to get the consultation right," Mr Albanese said, describing the debate as "blowback".

He said former prime minister John Howard and Bob Hawke faced similar polling as they introduced economic reforms.

"But once the reform occurs, governments get, I believe, a great deal of credit for having the courage to take on the big issues," he said.

Opposition frontbencher Andrew Robb said it was clear that the "people's revolt" predicted by coalition leader Tony Abbott had now occurred.

"I think what you are seeing is a widespread consensus ... that it's blatant fraud and toxic, not just for households but for businesses," Mr Robb told ABC television.

ACTU president Ged Kearney said the corporate sector and unions needed to work with the government.

"To just say it won't work and I'm not going to play and I'm taking my bat and ball and going home is appalling," she said.

The welfare sector has also got behind the carbon price, but Australian Council of Social Service (ACOSS) CEO Dr Cassandra Goldie said low-income households should be given cash assistance indexed to meet price rises.

An Essential Media poll of 1908 people found 51 per cent would support a carbon price if the money was used to compensate low- and middle-income earners and small businesses.

But when compensation is not mentioned, support drops to 34 per cent.

The multi-party climate change committee will hold its sixth meeting on Tuesday, with the carbon price laws set to go to parliament in the third quarter of the year.

The committee is expected to look at new data released on Monday showing Australia's carbon pollution rose 0.5 per cent to 543 million tonnes in the year to December 2010, and the nation's pollution levels for 2009 were measured at 103 per cent of their 1990 levels.

Australia is committed under the Kyoto protocol to limit carbon pollution in the 2008-2012 period to 108 per cent of 1990 levels.

The Nielsen poll published in Fairfax newspapers showed the coalition on 56 per cent leading Labor on 44, with Ms Gillard's approval rating dropping two points to 45 per cent and her disapproval rising three points to 50 per cent.

But Ms Gillard still leads Mr Abbott as preferred prime minister by eight points.