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MP backs Treasury

CLIMATE Change Minister Greg Combet said economic modelling by Frontier Economics that said the highest-emitting brown coal electricity generators were $400 million to $1 billion better off under the carbon tax was ''inaccurate'' - and he ''stuck by'' the Treasury calculations and the $5.5 billion compensation package offered to the brown coal companies.

The Greens, who argued the compensation was unnecessary, called for an immediate Productivity Commission inquiry to decide whether companies have been promised too much. ''I have always been certain this is a huge waste of money,'' Senator Christine Milne said.

But Mr Combet said there would be no inquiry. ''The Greens signed this package and they should live by it,'' he said.

The electricity industry also rejected the idea it was being given too much money.

On Wednesday the generators' stronger-than-expected financial position forced the Gillard government to abandon attempts to pay some of them to close down by 2020.