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National

Re-work emissions tax: Abbott

November 20, 2011

Opposition Leader Tony Abbott has written to Prime Minister Julia Gillard demanding she re-do Treasury modelling for her carbon tax and draw up a mini-budget to fund the new system's compensation measures.

Mr Abbott fired off his letter late yesterday and called for Parliament to be extended into December if necessary to debate new budget measures.

''I refer to the confirmation by President Barack Obama during his visit to Australia that the United States will not be implementing either a carbon tax or an emissions trading scheme for the foreseeable future,'' the Opposition Leader wrote.

''This follows the recent definitive statement by Canada's Foreign Affairs Minister John Baird, while in Australia for CHOGM, that there will never be an economy-wide carbon price or carbon tax in Canada.''

Mr Abbott said that in light of such international indications, Treasury's modelling assumptions about global action are ''deeply flawed''.

He has requested more ''realistic modelling'' by Treasury, robustly tested through external assessment.

Mr Abbott also wants it vigorously debated in Parliament before the end of the year.

''I would welcome the recall of Parliament for this task,'' Mr Abbott wrote.

''The Parliament was always scheduled to sit next week if required. It should now do so to consider the new carbon tax modelling ... and to ensure that the Government meets its guarantee of returning the budget to surplus.''

Meanwhile, the Coalition has suggested it might support amendments to the Government's proposed controversial Minerals Resources Rent Tax when the legislation comes before Parliament this week.

Mr Abbott has promised to rescind the tax if he wins office, but yesterday his shadow resources minister Ian Macfarlane said the Opposition would consider amendments to the legislation with the view of minimising the new tax's impact on mining companies.

''You could expect that we will be in Opposition for another 18 months to two years and this tax will operate during that period and may operate for a short period after we get into government,'' Mr Macfarlane told the ABC's Insiders program.

He said the less impact until then on the mining industry the better.

Government frontbencher Anthony Albanese said more time would be allocated to debate the mining tax in this, the last sitting week of Parliament for the year.

''What I'm confident of is that our cause is right, that it is absolutely correct to make sure we get a better return on these resources in order to reduce company tax, assist small business, boost infrastructure spending in regional communities and boost superannuation,'' Mr Albanese said.

''This is a commonsense approach. The Australian people get it. The only people who don't get it are Tony Abbott and the Coalition.''

Defence Minister Stephen Smith came to the defence of Ms Gillard yesterday for not consulting her Cabinet about her plan to sell uranium to India.

The ALP's current platform is not to sell Australian uranium to any country that has not signed up to the Nuclear Non-Proliferation Treaty. India is not a member of the treaty.

Foreign Minister Kevin Rudd confessed he was unaware of Ms Gillard's plan and that it hadn't gone before cabinet.

The Opposition has used the episode to suggest Ms Gillard had snubbed her foreign minister.

Speaking to the Ten Network yesterday, Mr Smith said it was entirely up to Ms Gillard if she wanted to tell cabinet about her initiative for the party conference.