PUP senators block carbon tax repeal

The Abbott government was dealt a massive blow today as senators from the Palmer United Party (PUP) withdrew their support for the repeal of the carbon tax.

PUP leader Clive Palmer said the party had recommended amendments to the carbon tax repeal legislation, including the requirement of “all producers of energy in this country to pass on to all consumers of energy the resultant savings of its repeal”. A later provision added that if such savings were not passed on by 1 July 2015, the companies will pay a penalty calculated at 250% of its savings to the Commonwealth of Australia.

But Palmer stated that the amendments - a condition of the party’s support for the repeal bills - were not submitted for Senate scrutiny prior to today’s vote. PUP senators had voted alongside the Coalition to limit debate on the bills, but only because they believed their amendments had been included in the package, said Palmer.

“I think you’d call it double-crossing people,” he said of the omission.

As a result, the three PUP senators voted against the repeal, joining the Labor Party, Greens and Ricky Muir of the Australia Motoring Enthusiast Party. The bills were rejected 37 votes to 35.

Greens Leader Christine Milne said today’s events show that “the Prime Minister has failed”.

“The government gagged the debate then had to filibuster when the amendments came unstuck,” she said. “The whole thing came to pieces.

“This is going to characterise this whole period of government unless Tony Abbott learns to respect the Senate and give it time to be an effective house of review.”

Penny Wong, Leader of the Opposition in the Senate, criticised the Coalition’s attempt to fast-track the vote.

“If the government’s motion had succeeded it would have ended the second reading debate after just one day and denied all senators the opportunity to properly examine the nine bills in detail, debate amendments and question ministers during the committee stage,” she said.

“The government sought to end debate today despite the Opposition offering to give up hours of Opposition time in the Senate tomorrow for debate on the bills.

“Today’s move was an act of bad faith and a demonstration of the Prime Minister’s contempt for the Senate.”

Milne noted that the block is the second double-dissolution trigger received by the Abbott government, after senators last month rejected legislation to abolish the Clean Energy Finance Corporation.