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Australia votes to repeal carbon tax Australia votes to repeal carbon tax
(about 1 hour later)
Australia's Senate has voted to repeal the carbon tax, a levy on the 300 biggest polluters passed by the Labor Party when they were in power in 2011. Australia's Senate has voted to repeal the carbon tax, a levy on the 300 biggest polluters passed by the previous Labor government.
Prime Minister Tony Abbott, whose Liberal-National coalition beat Labor in an election last year, had made the repeal a central aim of his government.Prime Minister Tony Abbott, whose Liberal-National coalition beat Labor in an election last year, had made the repeal a central aim of his government.
Politicians have been locked in a fierce row about the tax for years.Politicians have been locked in a fierce row about the tax for years.
Labor says it helps to combat climate change, but the Liberals claim it penalises legitimate businesses.Labor says it helps to combat climate change, but the Liberals claim it penalises legitimate businesses.
The Australian Senate voted 39 to 32 to repeal the tax, which charges the highest polluters A$23 (£13;$22.60) for every tonne of greenhouse gases they produce. The Australian Senate voted by 39 to 32 votes to repeal the tax.
Protests Introduced in July 2012, it charges the highest polluters A$23 (£13; $22.60) for every tonne of greenhouse gases they produce.
Australia is the developed world's worst polluter per head of population. 'Bereft of policy'
But critics, including Mr Abbott, said that the tax cost jobs and forced energy prices up. Australia is the developed world's worst polluter per head of population. But critics, including Mr Abbott, said that the tax cost jobs and forced energy prices up.
There were widespread protests against the introduction of the tax in Australia. There were widespread protests against the introduction of the tax in Australia and its repeal formed a major part of Mr Abbot's election manifesto.
The repeal of the tax formed a major part of Mr Abbot's election manifesto. He says he plans to replace it with a A$2.55bn taxpayer-funded plan under which industries will be paid to reduce emissions and use cleaner energy.
The leader of Australia's Green party, Christine Milne, said the vote against the tax was an "appalling day for Australia". His coalition does not hold a majority in the Senate but the repeal went through with the support of senators from mining tycoon Clive Palmer's Palmer United Party.
"Scrapping the carbon tax is a foundation of the government's economic action strategy," said Mr Abbott, calling the move "great news for Australian families".
"We are honouring our commitments to you and building a strong and prosperous economy for a safe and secure Australia."
Labor and the Greens voted against the repeal, with Greens leader Christine Milne describing the vote as an "appalling day for Australia".
Labor accused Mr Abbott of "taking Australia backwards while the rest of the world is moving forward".
"All of Australia's major trading partners are taking serious action on climate change, including in our own region," opposition leader Bill Shorten said in a statement.
The Climate Institute think-tank isaid in a statement that the move left Australia "bereft of credible climate policy".
"What we are left with as potential replacement policy rests on three wobbly legs - a government fund subject to an annual budgetary arm wrestle, uncertain non-binding limits on some company emissions, and a renewable energy target under assault," it said.