from The Australian

JULIA Gillard will today win lower-house support for her carbon tax package, the most dramatic economic transformation since the dismantling of tariffs in the 1990s, despite rising industry concerns that the $23 a tonne starting price will hit the competitiveness of businesses.

As Tony Abbott demanded the government seek a mandate for the scheme at an immediate election, the Prime Minister accused the Opposition Leader of hypocrisy, citing his reversal of his previous support for an emissions trading scheme and the endorsement of carbon pricing by former Liberal leaders. And business groups expressed concerns that the starting price was almost double that of permits in the world's biggest carbon scheme in Europe, which new industry research revealed would reduce the profits of energy-intensive small to medium-sized businesses by up to 20 per cent. The 18 bills comprising the clean energy legislative package will pass the House of Representatives this morning, with Labor winning the support of the Greens, independents Rob Oakeshott and Tony Windsor - who were part of the multi-party climate change committee that negotiated the package - and Andrew Wilkie.

A separate bill proposing a $300 million rescue package for the steel industry will also pass after the Greens yesterday decided to support it, although the party's deputy leader Christine Milne will move amendments in the Senate in a bid to force more emphasis on green jobs in the Illawarra and other steel regions. Ms Gillard challenged Coalition members, when they voted today, to be "on the side of history".

"We, on this side of the parliament (Labor), will vote for a clean energy future, for reducing carbon pollution, for enabling economic growth without increases in carbon pollution and for putting more money in the hands of pensioners, working Australians who need it the most, people raising families," the Prime Minister said.

"We will make sure, more importantly than almost anything else, that we seize the jobs and opportunities that come with a clean energy future."

Ms Gillard said the Opposition Leader would not repeal the carbon tax if he won government because more than half his party supported pricing carbon, as did "every living Liberal leader" except him, and so his pledge was "nonsense".

Mr Abbott, who failed to censure the Prime Minister over her pre-election comment that there "will be no carbon tax under the government I lead", said now was the worst time to introduce a carbon tax. "Confidence in our own country is at rock-bottom record lows," the Opposition Leader said.

"Unemployment is edging up. The euro is under great pressure and countries in Europe face the risk of sovereign debt default. There is the threat of a worldwide recession."

Amid the leaders' sparring, Victorian MP Anna Burke told federal parliament she had received numerous emails containing death threats over the past week, one of which was opened by her 12-year-old daughter. Ms Burke said she had referred the matter to the Australian Federal Police after receiving more than 10 threatening emails.

The passage of the bills would represent the first important policy victory for Ms Gillard since she took over as Prime Minister last June.

On the eve of the vote, West Australian National Tony Crook, on whom the government is relying for a crucial vote on its Malaysia Solution people-swap deal, opposed inclusion of off-road diesel in the carbon tax and moved amendments.

Climate Change Minister Greg Combet said the government was of a mind to reject the amendment.

Under the government's package, a fixed carbon price of $23 a tonne will be imposed from July 1 next year, rising at 2.5 per cent a year in real terms for three years. In 2015, the package will convert to an emissions trading scheme with a floating price.

When the floating price starts in 2015, a floor price of $15 will be imposed and a ceiling price, $20 above the expected international price, will also be imposed to prevent volatility.

The Business Council of Australia expressed concern the $23 a tonne fixed starting price was out of step with international prices, and the Australian Chamber of Commerce and Industry released research from global economic and strategic consultant Castalia that found energy-intensive small and medium enterprises were likely to suffer a cut in profitability of between 10 per cent and 20 per cent.

ACCI chief executive Peter Anderson said the research demolished the idea that only 500 big companies pay the tax. Homing in on the 25 per cent collapse in EU carbon permit prices this year, Business Council of Australia chief executive Jennifer Westacott said: "You only have to look at the forward prices of permits in the EU scheme and through the clean development mechanism for the next couple of years to be concerned that the prices being set in the fixed-price period in the Australian scheme place a greater cost on industries in Australia. This is why the council is seeking a low starting price in the fixed-price period when there will be no international linkage."

EU December carbon permits rose 26c, or 2.5 per cent, to E10.72 ($14.65) on Monday, their highest price this month, but 25 per cent below their peak this year as the carbon market collapsed in line with other markets over concerns of a European financial crisis.

ACCI economics director Greg Evans backed the comments. "It's beyond argument Australia will be burdened with the world's biggest and most invasive carbon tax for at least the fixed-price period. Consequently the trade-exposed sector will be under even more intense competitive pressure at a time when they are facing uncertain and deteriorating trading conditions."