In an early indication of the Government's thinking about the shape of Australia's emissions trading scheme, Treasurer Wayne Swan has guaranteed that none of the money it raises will go into consolidated revenue.
''Every cent'' raised from the sale of emissions permits would be used ''to assist either households or the business community with the impacts of this scheme'', Mr Swan told the Channel Nine Sunday program yesterday.
''There is no doubt that there will be some revenue raised and it won't be used for any other purpose other than to ensure the scheme has integrity and those people who need assistance, will receive it.''
His remarks are the first indication of the Government's thinking about the likely design of the scheme, which is being kept under wraps until July 16 when it will be outlined in a green paper to be launched by Climate Change Minister Penny Wong at the National Press Club.
Mr Swan also denied a weekend newspaper report that suggested the cabinet's climate change subcommittee had decided that the scheme must result in no net increase in the price of petrol.
The report said that should petrol be included in the scheme, the subcommittee had decided that petrol excise would be cut to offset the resulting price increase.
Mr Swan said cabinet had ''not made that decision this week''.
''We have not reached our final positions, that is what the cabinet is doing at the moment, but all of our approach will be outlined in the green paper,'' he said.
Pressed as to whether petrol would be included in the scheme, Mr Swan said, ''I am not ruling anything in and I am not ruling anything out.''
Opposition Leader Brendan Nelson said yesterday that if petrol was included in the scheme put forward by the Government it was ''highly likely'' that the Coalition would oppose it.
''We are Liberals we generally believe in market solutions, and that's why we supported an emissions trading scheme in government, and we believe that's the way to go forward,'' Dr Nelson told the Ten Network.
''But in terms of also principle, it is extremely important, particularly when petrol is around $1.70 a litre, that the Government, in its policies and implementing its policies in relation to climate change, does not ... increase the price of petrol.''
Dr Nelson said we could not, in ourselves, solve the problem of climate change, but we could do enormous damage to our environmental and economic future if we got this wrong.
''My real concern at the moment is that the Government, internally, is very much like the Whitlam government it is confused, it is disordered, there is deep splits and divisions within the Government, within departments and individual ministers about the way to go.''
Emissions trading is to start in mid-2010, with the final outline of the legislation in place by the end of this year.
Dr Nelson said that the timetable was too tight.
''I am very concerned about Australia's best interests not being served by them trying to ram it through.''
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