Interpac Business and Migration Solutions Melbourne Australia

November 24, 2009

The Federal Government has doubled the compensation for the coal sector and more than doubled it for the electricity sector in its deal on an emissions trading scheme.

As Opposition Leader Malcolm Turnbull retreated behind closed doors for the long-awaited showdown with his own climate change rebels, Prime Minister Kevin Rudd and Climate Change Minister Senator Penny Wong fronted reporters in Canberra.

Mr Rudd challenged the Opposition to back the amended scheme, describing the issue of climate change as a "fundamental, existential question".

And he said a failure to reach agreement on the scheme today would be to "roll the dice" with the future of Australia's children.

"Act for the future, not for the past. Act for your children. Act for your grandchildren," he said.

"Failing to act today is the riskiest course of action available to the parliament. Failing to act today is to roll the dice on our children's future .. I will not take that risk."

Senator Wong confirmed that agriculture was excluded from the compromise deal and said there would also be more incentives for households to cut their emissions.

She said the amended scheme being considered by the Opposition includes more compensation for emissions intensive industries, for power generators, and for the coal sector.

The assistance to the coal industry has been doubled to $1.5 billion. There is increased assistance of $4 billion to the electricity sector.

The deal also includes more than $1 billion to help medium and large manufacturing and mining businesses cope with electricity price rises.

But Greens Senator Christine Milne says the scheme is not strong enough.

"It is not the solution that the climate needs," she said. "It locks in failure."

Mr Rudd wants the scheme passed this week, in time for the Copenhagen climate change talks next month.

Earlier this morning, Mr Turnbull's shadow cabinet approved the compromise deal after it was emailed to chief Opposition negotiator Ian Macfarlane.

The deal is now being discussed in the Coalition party room.

The shadow ministry has recommended the Coalition party room accept the deal, although Tony Abbott, Nick Minchin and Eric Abetz argued against endorsing it.

(From ABCNews)