The Federal Government and Opposition are embroiled in a bitter dispute over the proposed carbon tax, with the Opposition proposing a non-binding $80 million plebiscite over the issue.

 

Family First Senator Steve Fielding, who’s support the Opposition requires to pass the motion pass the senate, has responded by labeling the Opposition’s move as a “political stunt” and a “glorified opinion poll”.

 

The plebiscite, due to go before the Federal Senate, will also need the support of independent crossbencher Nick Xenophon

 

The dispute comes after the Creative Energy Solutions director Carl Daley told the Energy Users Association of Australia conference that the Government would need to introduce a significantly higher cost per tonne of carbon if a tax would be introduced.

 

“To have a material effect on carbon abatement we have got to have a price of $60 or more. That is the reality of it” Mr Daley said.

 

The chief Government advisor for climate change, Professor Ross Garnaut, proposed a costing of $26 per tonne that would achieve a revenue of $11.5 billion in the first year of operations.

 

The dispute over the plebiscite and tax pricings comes as the Federal Government is attempting to finalize its pricing with the Federal Greens, who are emerging as a Federal powerbroker in the issue.