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The Hon Peter Garrett AM MP
Minister for the Environment, Heritage and the Arts

New Year's resolution for Tony Abbott: stick to the truth on Climate Change

Media release
31 December 2009

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On the last day of 2009, the new Opposition Leader Tony Abbott has finally admitted he has no basis for his false claim the CPRS will cost the average family $1100.

Today on 2GB Radio Mr Abbott finally owned up to the fact that he has no basis for that claim and simply plucked it out of a Google news search.

Mr Abbott should make it his New Year' s resolution to actually stick to the facts when it comes to climate change.

On 2GB radio this morning Mr Abbott was asked to stand by his dodgy $1100 claim:

HOST: Now you've been accused of coming up with fraudulent figures by the Government when you say that Australians are going to be more than a thousand dollars a year worse off. Do you stand by those figures- and how did you come up with them?

ABBOTT: Well, I do stand by the figures, which were drawn from reports based on Government modelling.

By admitting that he has no basis for his false $1100 claim Tony Abbott has shown that he cannot be trusted when it comes to climate change.

The fact that Mr Abbott continues to stand by his claim exposes his lack of judgement and unwillingness to take this critical issue seriously.

The reality is that credible economic analysis on the impact of the CPRS is contained in detailed modelling undertaken by the Treasury - the biggest economic modelling exercise in Australian history.

The impact on households is based on this modelling, and has been updated to reflect changes in the expected carbon price.

It found that the CPRS would cause prices to rise by 1.1 per cent in 2013 - on average costing $624 a year.

To help with cost increases, the Rudd Government will provide direct cash assistance to most Australian households.

A total of 90 per cent of all households will receive assistance and on average these households will receive around $660 of compensation in 2013.

On average low income households are $190 better off under the CPRS - because the average price impact for low income households is $420, while their average annual assistance is $610.

There are two simple facts Mr Abbott cannot avoid.

The first is that there is no cost free way to tackle climate change.

The second is that Mr Howard, Mr Costello, Mr Turnbull and the Rudd Government all chose a CPRS to act on climate change because:

Over thirty countries, including all of Europe, Japan, the United States of America, and New Zealand have either introduced or are introducing a CPRS.

Commonwealth of Australia