Federal Opposition Leader Tony Abbott has warned industry groups to avoid purchasing more international or future local carbon tax credits than they currently need, saying that his party will repeal the tax if he takes office next election.

 

The move has drawn heavy criticism from Federal Treasurer Wayne Swan, who accused Mr Abbott of being ‘deeply irresponsible’ for his actions.

 

"That sort of advice from Mr Abbott is deeply irresponsible and just shows he is not fit for high office," Mr Swan told ABC Radio.

 

The policy will come into effect in July 2012 and will tax the 500 heaviest polluting companies $23 per tonne of carbon emission with a plan to move to a full carbon trading scheme by 2015.

 

Mr Abbott said that industry wouldn’t suffer any negative consequences from repealing the tax if they avoid purchasing any more carbon credits than they currently need.

 

However, Greens senator Christine Milne said that the Opposition’s actions would add uncertainty to industry, households and jobs. Senator Milne said Mr Abbott’s actions would lead to increased volatility in the electricity sector.

 

"They are quite happy to drive up electricity prices to every household because they will do anything to get into power," Senator Milne said

 

Ms Milne said that the Opposition’s moves against the tax would result in substantial increase in the risk of borrowing, consequently making borrowing increasingly difficult and expensive.

 

"They are holding back the development of green businesses," Senator Milne said.