Australia PM introduces controversial carbon laws

CANBERRA (Reuters) - Australian Prime Minister Julia Gillard introduced her government's controversial carbon tax plans into parliament on Tuesday in a third attempt to legislate a price on pollution after previous plans were rejected in 2009.

Gillard has staked her government's future on passing the laws, which will force around 500 big polluting companies to pay for carbon emissions through a A$23 ($23.75) per tonne carbon tax from July 2012, ahead of emissions trading from mid 2015.

The plan will see Australia join the European Union and New Zealand with national emissions trade schemes, while the United States and Japan have smaller regional emissions trade schemes.

The carbon price is the central plank in the government's plan to cut carbon emissions, blamed for global warming, by 5 percent of year 2000 levels by 2020.

The policy has the support of key independents and Greens, ensuring the plan should be endorsed by parliament.

"Today we move from words to deeds. This parliament is going to get this done," Gillard said as she introduced the first of a package of 18 bills.

A previous plan put forward in 2009 was twice rejected by parliament before it was shelved by former prime minister Kevin Rudd, who was dumped by his party as prime minister in favor of Gillard in June 2010.

The conservative opposition strongly opposes the carbon price and has taken an election-wining lead in opinion polls on the back of leader Tony Abbott's warnings that the carbon tax will lead to job losses, factory closures, and push up prices.

But Gillard urged opposition lawmakers to support her plan, worked out over the past 12 months after negotiations with Greens and independent lawmakers.

"The judgment of history comes sooner than we expect, and the demand for policy leadership comes hard on its heels," she said.

"If you don't do what is right for the nation, then you shouldn't be in parliament. It's time to deliver the action on climate change we need."

The carbon bills, and an extra bill dealing with special assistance to the steel industry, will now be sent to a joint lower and upper house inquiry, due to report back in early October.

The government then wants the bills passed by the lower House of Representatives by October 11.

The upper house Senate, where the Greens and government have the numbers to pass the laws without the need of independents, has scheduled an extra week of sittings from November 7 to deal with the legislation.

But the opposition argues there is not enough time to debate the package, accusing the government of trying to rush the package through parliament without proper scrutiny.

"It's an attempt to ram through the most controversial legislation arguably of the last 30 years, with virtually no parliamentary scrutiny," Opposition climate spokesman Greg hunt said on Tuesday, adding the government would allow less than one minute per member for each bill.

Australia's scheme will cover 60 percent of carbon pollution, although agriculture will be exempt. Treasury models round it would boost the consumer price index by 0.7 percent in its first year, in 2012-13 (July-June).

Big polluting export-exposed industries such as steel producers and aluminum smelters will receive 94.5 percent of carbon permits for free, while moderate emitting exporters will receive 66 percent of permits for free.

The government expects the sale of carbon permits to raise A$24 billion in the first three years.

To ease voter concerns about higher prices under the plan, the government has announced A$15 billion worth of tax cuts and household assistance over the first three years.

Australia accounts for about 1.5 percent of global emissions, but is one of the developed world's biggest per capita emitters due to a reliance on burning coal to generate 80 percent of electricity.

($1 = 0.968 Australian Dollars)

(Reporting by James Grubel; Editing by Ed Davies)