Gore, Palmer forge clean energy alliance

Former US Vice President Al Gore’s recent visit to Australia could be a saving grace to the country’s clean energy future. Gore did not only get the support of more than 500 new climate leaders from 24 countries, but more notably he got the backing of  controversial mining magnate, Clive Palmer, who leads the Palmer United Party (PUP).

Gore told his followers during the 3-day Climate Reality Leadership Corps Training in Melbourne last week he believes in Palmer’s genuine intention to help reduce dirty carbon emissions. He added he appreciated the opportunity to meet Palmer to discuss solutions to the climate crisis: 

“As a national leader, he clearly understands the critical importance of ensuring a sustainable future for generations to come. Mr. Palmer and I don’t agree on everything, but I’m very encouraged by his willingness, and that of his party, to preserve many of the climate policies in Australia.”

Al Gore and Clive Palmer hold a joint press conference in Canberra. (Photo supplied)

The announcement elicited media sensations describing the Gore-Palmer meeting as an inconvenient partnership. But grassroots are more than happy to welcome the alliance.

GetUp, for example, said people fought so hard to keep clean energy initiatives, but all environmental  laws are facing the chopping board;

Saving the price on pollution we fought so hard to achieve is unfortunately looking less and less likely – but Palmer’s Senators have announce that they have conditions…

Gore and Palmer reached a compromise on clean energy issues. Palmer vowed to support the Renewable Energy Target (RET), uphold the Clean Energy Finance Corp, and to save the Climate Change Authority.  PUP Senators are expected to block moves that will abolish these “clean three.” PUP,  however, is not supportive to carbon tax, but instead favours Emissions Trading Scheme (ETS). Palmer also dismissed Direct Action plan which he claims to be a waste of money.

Al Gore trains new climate leaders in Melbourne.

Kelly O’Shanassy, chief executive officer of the Australian Conservation Foundation (ACF) said Palmer has taken a big step towards securing a cleaner, healthier future for all Australians. But she is disappointed his party will support the repeal of the carbon tax, and the current emissions trading scheme structure could go with it.

The carbon price is working now. Pollution from electricity fell by 5% in 2013 alone. If Mr Palmer is serious about Australia tackling climate change, he must be serious about retaining the laws that are already doing the job.

Palmer has three Senate votes which is crucial in balancing the Senate. GetUp said, “ if our new Senate votes with Palmer, this will mean we can still make significant progress towards a clean energy future that will fund renewable energy projects, create jobs and stop Abbott from taking Australia back into the dark ages. “

The Senate will convene on July 7 to determine the fate of the clean energy future.

Gore recruits new climate leaders

Meanwhile, 525  new leaders are added into Gore’s climate army. Gore encouraged them in their resolve to help fight what matters to them: environment and climate change. The new leadership corps involve a wide range of professional demographics, including teachers, communicators, IT experts and technicians, farmers, artists, musicians, businessmen, and bureaucrats, among others as well as youth and students.

Al Gore leads the Climate Reality Q & A panellists.

It is the fourth training in Australia that calls for serious concerns on climate reality: severe heatwaves, bushfires, drought, and floods.  O’Shanassy said it is no coincidence that ACF are training leaders: “ We need them now more than ever. Over the next few weeks the government will try to bulldoze Australia’s climate laws. While some senators are pushing their support for clean energy, nothing can be taken for granted until the votes are counted on July 7th. The carbon price is still in peril and we must keep fighting.”

Pricing carbon sets the agenda.

Gore expects Australia to play a global leadership role on the most pressing issue of the time.  He said “We have more reasons than ever to believe we’re putting ourselves on a path to solve the climate crisis.”
He underscored initiatives of  US President Obama who has committed to cut carbon emissions and encouraging global action to tackle global warming. He also noted China to have established emissions trading schemes, along with the European Union and parts of the United States like California. He concluded that Australia is taking action as well:

Two million Australian households now have rooftop solar PV systems, just one example of the rapid growth of clean renewable energy worldwide. Australia and its citizens have long been leaders on this issue. It is my hope that its climate policies will continue to reflect that and serve as an example to the rest of the world.

Blog Link: The Green Journal/ Asian Correspondent

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Abbott’s 2014 budget: Climate change not a priority

It is not a big surprise when the Coalition Government of Tony Abbott sliced a huge amount of budget for the environment.

Reacting to the budget, mining magnate Clive Palmer, who leads the Palmer United Party, said the 2014 budget is delivered for the lobbyists and donors of the Liberal Party. He, however, failed to realise that the mining sector, which he likewise represents, is a big budget benefeciary.

Clive Palmer with Jim Mclnally and Sisie Douglas announcing the United Australia Party in Brisbane, 26 April. (Photo: Mark Calleja/ goldcoast.com.au)

Palmer wrote in  The Guardian:

As the government prepared its first budget, the spin doctors were working overtime, preparing for the moment when Tony Abbott and Joe Hockey would throw away the promises and the policies they took to the election. At parliament house, lobbyists queued to see ministers and bombarded new members of parliament with detailed submissions…

The budget, which was delivered in Parliament last week, hits the Green sector hard – not to mention a range of other victims under Australia’s welfare system.

Australia’s climate change policy and investments in renewables are now facing uncertain future.

Investment in renewables has been scaled down to save about $1.3 billion. The government has also turned its back from its commitment to the Renewable Energy Target (RET) with funding of $2.55 billion now set to spread out over 10 years instead of four years as promised.

Solar panels on Port Augusta, VIC (Photo: Supplied)

 

The Australian Renewable Energy Agency (ARENA) is no longer needed and its function will be streamlined under the environment department. ARENA was set up in 2012 to drive research and investment in renewable technologies. With bipartisan support, it was set up as an independent agency to improve the competitiveness of renewable energy technologies and their uptake. Ivor Frischknecht, the agency’s chief executive ,said abolishing the agency will reduce Australia’s ability to lower cost energy in the long term.

The Renewable Energy Target (RET) scheme is designed to ensure that 20 per cent of Australia’s electricity comes from renewable sources by 2020. The RET scheme is helping to transform Australia’s electricity generation mix to cleaner and more diverse sources and supporting growth and employment in the renewables.

More bad news comes with AGL backflipping from its commitment to renewables. It announced over the weekend Australia’s RET is not achievable.

Leading utility AGL Energy has called for the scrapping of federal government support for rooftop solar PV, and has indicated the large scale renewable energy target (RET) should also be diluted or deferred because it would be impossible to meet the current 41,000GWh target in the current timeframe. – Giles Parkinson, Renew Economy

This will make Australia to slip further as an enemy of clean energy Already, the country ranks ninth  in renewable investments last year ahead of Italy, but behind the likes of South Africa, Canada, India and Germany.

 In contrast to renewables, the mining sector get a big  boost with $100 million allotted over four years for minerals exploration. Small explorers will not make any taxable income access to a refundable tax offset for their Australian shareholders.

Abbott has also spared mining an increase in  the diesel fuel excise. Currently, commercial vehicles used in mining and agriculture get a rebate on the diesel fuel excise that drops it to six cents per litre. Before the budget there had been calls to raise this in line with the petrol fuel excise.

 Extreme heatwaves hit Australia (Image: ABM)

 

The Minerals Resource Rent Tax, otherwise known as mining tax, which was introduced during the Government of Kevin Rudd and passed the Parliament under Julia Gillard has been tabled in Abbot’s agenda. The abolition of mining tax is projected to save $3.4 billion over the next three years. Read ABC’s summation of the budget.

With the G20 summit to be held in Brisbane this coming November, Abbott has already informed the EU he wants environment and climate change to be taken off  from the agenda- besides he already informed the IPCC and the rest of the world he does not believe in climate change. 

 

 

Australia’s mining goddess acquires Fairfax media

Mining magnate Gina Rinehart grabbed the largest stake at Fairfax Media with additional 42 million shares costing $25 million which she bought in just one transaction today. This increased her total share at the company to almost 15 per cent from 13 per cent, The Australian reported.

Gina Rinehart grabs Fairfax. (Photo: Patrick Hamilton/Perth Now)

Rinehart bought the shares at a price of 60 cents per share. The trade was worth $25.2 million representing 1.8 per cent of Fairfax’s total issued shares, the AAP said at noon.

Perth Now, however, is following up latest developments including a dramatic approached for 235 million shares which was made after the local sharemarket closed, with the offer available till 8pm.

Fairfax is one of the two biggest and most influential media conglomerates in Australia, along with the News Limited owned by the old-rich Rupert Murdoch’s clan.

Perth Now also noted Canberra Media analyst Peter Cox who believes Rinehart is increasing her stake to boost her influence in national affairs. He said Rinehart has already acquired Ten News as a financial investment.

“So this has to be driven by her view on politics in Australia…What’s the point of spending that money on it if you’re not going to have influence?”

The latest stake must be a way to go forward fulfilling the prophesy of climate sceptic Lord Christopher Monckton who advised the rich to capture the media to advance free-market agenda.

Australia’s mining magnates: Clive Palmer, Gina Rinehart, Andrew Forrest

Monckton spoke last year to free-market think tanks in WA on “How to better capture the Australian media to help push a right-wing, free-market and climate sceptic agenda.” It was a boardroom meeting hosted by the Mannkal Economic Education Foundation, a group chaired by mining “Hall of Fame” member Ron Manners to promote free-market ideals and low government intervention.

ABC’s The Drum said Manners is a member of Gina Rinehart’s lobby group ANDEV, which has been joined by the Institute for Public Affairs to lobby for a separate low-tax low regulation economic zone for the north of Australia to make mining projects easier to develop.

The original version of the video has been deleted from You Tube, but GetUp reposted it with transcription capturing Monckton’s verbatim sinister claims:

Is there an Australian version of Fox News?… No….

Frankly whatever you do at a street level, which is what you are talking about here, is not going to have much of an impact compared with capturing an entire news media.

You look at the impact that Andrew Bolt has had since he was rocketed to fame and that is the way to do it, you have to capture the high ground of what are still the major media, and what will remain for quite some time.

And until we crack that one both in the UK and Australia, we’re going to suffer from an disadvantage, against the more libertarian right-wing minded people in the United States…who have got Fox News and have therefore got things like a Tea Party, have at last put some lead into the pencil of the republican Party.

And it seems to me that putting some time into encouraging those we know who are super rich to invest in perhaps even establishing a new satellite TV channel is not an expensive thing, and then get a few…Joe Novas and Andrew Bolts to go on and do the commentating everyday—and keep the news free and fair and balanced, as they do on Fox. That would be breakthrough and give to Australia as it has for America a proper dose of free market thinki

The Australian said Rinehart admitted her desire to control two board seats at the media company which publishes The Sydney Morning Herald, The Age in Melbourne, and the Australian Financial Times. The company also controls the auction website TradeMe, as well as the Southern Cross Broadcasting network of radio stations.

Amid mining boom, Rinehart was also the first mining magnate to get the approval from the Federal Government to import 1715 foreign workers under a new type of 457 visa for the three-year construction phase of Roy Hill iron ore mine in Western Australia.

Caricature to mock Rinehart’s foreign workers (By Nicholson)

The scheme angered local workers and labour unions. Labour observers said Rinehart will take advantage of skilled foreign workers that come with cheaper wages.

This year, the BRW magazine named Rinehart as theworld’s richest woman with $29 billion mining fortune making her $3 billion richer  than Christy Walton’s, the widow whose inherited wealth springs from US retail giant Wal-Mart.

The ABC said “Ms Rinehart has ridden Australia’s resources boom like no-one else; her wealth ballooning by an unparalleled $18.87 billion in the past year….That equates to $1,077,054 every 30 minutes of every day.

Blog LInk: Asian Correspondent

Queensland slams UNESCO, defends gas on the barrier reef

UNESCO has released its damning environmental report on the Great Barrier Reef, but the Queensland State Government hits back saying the report poses an obstacle to the multi-billion dollar seam gas business.

The report came in time when the mineral boom is underway and the Queensland Government is excited about financial gains. Queensland Premier Campbell Newman said his Government understands the issues raised in the report but could not accommodate some of its chief recommendations, News Corp. reports.

Newman said his government is in coal business and he is not going to see the economic future of Queensland shut down.

UNESCO sent a team of experts in March to assess the status of the reef confronted by both natural and man-made threats. While natural threats could be beyond control, the impact of the latter can be minimised if the Queensland Government can review and adopt strategic solutions.

The international body said the World Heritage listed site is under enormous pressure amid increased developmental activities, including additional port infrastructures in and around the Great Barrier Reef and ongoing management of major liquefied natural gas (LNG) plants at Curtis Island and Gladstone Harbour.

The dredging in Gladstone Harbour for the seam gas has been blamed by local environmentalists for the area’s poor water quality and a skin disease affecting marine life. Green activists say dredging has adversely affected whales and dugongs in the area.

UNESCO recommended to the State Government to stop port facilities expansions and to undertake a comprehensive review and strategic solutions to protect the Outstanding Universal Value of the reef.

It warned the reef could officially be listed “in danger” if the federal Government fails to convince the international body it has improved its performance before February next year.

Whether Queensland would be able to help improve environmental conditions of the reef or not, both state and federal governments have already given mineral explorations a go. Federal Environment Minister Tony Burke supports the developmental projects saying the approval of applications has been in full swing. He said there was not much he could do to prevent development applications already in progress.

Mining magnates Clive Palmer and Gina Rinehart have likewise secured government’s approval of their mining ventures in Queensland. Further, the two mining lords have  been pressuring the Government to allow them to build the world’s largest coal export facility right in the heart of the Great Barrier Reef World Heritage Area. The facility is envisioned  to double Australia’s coal exports. The mining moguls expect to hear of Government’s decision in 36 weeks time, GetUp noted.

GetUp, an activist group, said mining billionaires are used to getting their way,” but they’re not the only ones who know how to fight.”  The group has forged a tie up with Greenpeace and BankTrack to undertake an advertising campaign in key financial market in Asia and India to warn potential investors not to invest in these projects.

It’s not just UNESCO who are against the massive expansion of coal and coal seam gas facilities. We’ve just released an opinion poll that found 79 per cent of  Australians are already concerned about the expansion of mining along the Reef’s recognised heritage area — and that was before UNESCO’s  scathing criticisms started to make headlines nationwide.

GetUp is optimistic the ad campaign will work.  It claims that  in 2009, it funded ads in the European Financial Times to discourage potential investors who were previously considering to fund Gunns’ pulp mill in Tasmania.

Blog Link: Asian Correspondent

Xstrata’s video parody backfires

Australia’s mining giant, Xstrata Coal, is reported to have written Mumbrella, an online  discussion site of “everything under Australia’s media and marketing umbrella” this week. The letter contains a threat of a legal defamation suit over a published video parody on Australia’s mining business allegedly posted by Mumbrella.

The Australian confirmed the letter to be genuine. Tom Cregan, legal counsel of Xstrata, wrote Mumbrella Editor Tim Burrows:

We therefore require that the video…..(and on any other website hosted by Mumbrella or YouTube) be removed immediately and remind you that all persons involved in the publication of defamatory material are equally liable for defamation. We also observe that the reproduction of the whole of the video taken from www.thisisourstory.com.au appears to constitute a breach of copyright.

The video has been deleted due to defamatory allegation.  It is purportedly produced and posted as a union campaign by former Chaser member Charles Firth. It was deleted from the Australian Manufacturing Workers Union’s You Tube account in early December after a complaint from Xstrata.

As early as December, however, activist groups have put up a new site featuring a collection of parodies on Australia’s mining industry, This is the Real Story. Similar videos are also posted on You Tube, including this one:

The site comes with a Facebook page which is nearing a thousand fans.

This is the Real Story claims to be a site put up by a group of concerned satirists comprising of the Australian Satire Institute of Australia, the Chamber of Satire Studies (NSW), Queensland Satirical University, the Royal College of Japery (WA), Federal Council of Satirical Councils (Federal Branch).

“Together our member organisations comprise over 85% of all satirical output in Australia. These are the real stories about what Australian mining is doing to the economy. …These are the real stories about what Australian mining is doing to the economy,” the site claims

The main video voices over the claim of how good to do business in mining—to dig up the wealth of the earth and export it overseas. It also voices over a parody where to get mining workers– from overseas labor or indigenous which are far much “cheaper.”

The site is sponsored by the AMWU and is supported by activist groups,  GetUp! and Fair Go for Billionnaires.

The site compiles collection of video parodies about “the real stories in Mining” including that of Clive Palmer claiming the CIA to be involved in Australia’s mining conspiracy.

While mining export boom should be a good news, local workers, indigenous communities, and Green activists have been on the rise to oppose mining.

Al-Jazeera also has produced a film on the mining ventures currently being undertaken in Australia. The video claims that while natural resources are powering Australia’s economy to record highs, there is a dark side to the mining boom.

Australia is blessed with rugged beauty and a wealth of natural resources – including coal, iron, natural gas and gold. Such minerals are powering Australia’s economy to record highs. And as demand from China for more resources grows, new mines continue to open across the country. But critics say there is a dark side to this success story. Mining regions attract transient workers keen to make a quick buck, creating social and environmental problems and a rising crime rate. Mines are also draining Australia’s pool of skilled labour from other industries and driving up wages. 101 East asks: What is the cost of Australia’s mining boom?

To get involved  and get updates directly into your inbox, you can subscribe stories from the organisers.

Blog Link Asian Correspondent

GetUp! rallies behind Swan on mining tax

“Politicians have a choice… between standing up for workers and kneeling down at the feet of the Gina Rineharts and the Clive Palmers …”  – Wayne Swan, The Monthly, March 2012

Here’s from the email inbox:

The Government is talking tough about the need to ensure all Australians benefit from the resources we own. But here’s the stark truth: Over the next three years, as the Minerals Resources Rent Tax brings in $10.6 billion from the mining industry, around $8.5 billion will be handed back to them in tax concessions and loopholes!

Wayne Swan is making critical decisions over the next few weeks in an attempt to reach a budget surplus in 2012/13. As we’ve seen at budget time in years past, ideas are floated out in the weeks leading up to the budget to see how the public responds. Just this morning, news outlets began running the story that perhaps mining subsidies would be cut in the upcoming budget. As Wayne Swan takes the public’s temperature on this issue, let’s turn up the heat on him.

Can you make sure Swan stands up for workers by ending mining handouts? Chip in to put this ad on the air so that he hears from everyday Australians instead of mining magnates:

http://www.getup.org.au/end-billionaire-welfare

Mining magnates such as Clive Palmer and Gina Reinhart continue to rake in record profits at the same time as receiving billions of dollars in handouts (our tax dollars) from the Government.

Each year, mining subsidies on offer include (but are not limited to): – $1.89 billion under the Diesel Fuel Tax Credit Scheme [1] – $330 million under the exploration and prospecting deduction [2] – $250 million via an accelerated deprecation scheme that lets them write down their assets early [3] – $390 million in various research & development deductions [4]

This billionaire welfare is occurring at the same time as nurses, teachers, aged-care workers and other public sector workers face further budget cuts.

That’s why we’ve made an ad that highlights the stories of the people who really deserve the Government’s aid – people working for public interest, not vested interest.

Can you help get their message on TV screens before it’s too late?

http://www.getup.org.au/end-billionaire-welfare

It’s safe to say that at some point in our lives – if it hasn’t happened already – we’ll all depend on people like Clare, Michelle, Janice and Inge. It’s not right that they continue to work hard and pay taxes week in and week out, facing budget cuts and staffing shortages – only to have that money handed over to Clive and Gina so they can become even richer.

We can put a stop to it. Ask Wayne Swan to put our money where his mouth is and end handouts to big mining: http://www.getup.org.au/end-billionaire-welfare

Thanks for standing up for what’s right, for the GetUp team.

PS – With just weeks to go before the budget is handed down, the word out of Canberra is that key meetings to discuss policy options like ending mining subsidies are occurring over the next few weeks. Can you help us get this ad on the air as these important decisions are being made? http://www.getup.org.au/end-billionaire-welfare

Sources: [1] ‘Taxation Statistics 2008-09’, Australian Taxation Office. 2011. p 14 [2] ‘Tax Expenditures Statement 2011’,  The Australian Government the Treasury. January, 2012. p. 108 [3] ‘Drill Now, Pay Later’, Australian Conservation Foundation. September, 2011. p. 8 [4] ‘The Berd in the Hand Report’, Australian Business Foundation. April 2011. pp 18 – 25

Australia’s mining tax and CIA conspiracy

The mining tax has dominated Australia’s political landscape this week.

The Senate passed the mining tax on Monday imposing a 30 percent tax on super profits generated by mining companies from coal and iron ore. The tax revenue will be used to elevate income and pension funds of the less well-off Australians and to cut tax on small businesses.

This sent shockwaves to the mining industry which could have been rejoicing over mining boom worldwide.

Mining magnate Clive Palmer hits CIA of mining conspiracy

Queensland mining magnate Clive Palmer lashed out at the federal government and claimed the CIA is behind the mining tax as part of America’s conspiracy to kill Australia’s coal industry.

Palmer also accused the Greens as “tools” of the US government and the environmental activists group, Greenpeace, is funded by the Rockefeller Foundation.

He said he will lodge a double High Court challenge on both carbon and mining taxes.

But his accusation hits back like a boomerang.

The CIA via ABC email denied his claim prompting him to back away from inflammatory comments, Fairfax reports via SBS.

Crikey, an alternative online media said,

Now Clive Palmer again has demonstrated the eccentricity that comes from having so much money you don’t have to care what anyone thinks of you…

Palmer is doing no more than continuing Queensland’s rich tradition of conspiracy theorists, which has produced the Citizen’s Electoral Council and Pauline Hanson, to name only the most prominent of recent years. Nor is it the first time he’s accused people of being a CIA front — back in November, it was American Express who were doing the bidding of the spooks.

Palmer could probably find consolation in knowing another mining group, Fortescue Metals, confirms it has sought legal advice ahead of plans to mount a High Court challenge against the Federal Government’s mining tax, News Corp said.

Chairman Andrew Forrest of Fortescue Metals leads a protest against mining tax during Kevin Rudd’s time

Fortescue claimed the MRRT is a poorly designed tax, drafted by the big miners behind closed doors to minimise their tax exposure at the expense of the rest of the industry,” the company said in a statement.

The Government is also facing a revolt from Liberal-led mining states.

Western Australia’s Premier Colin Barnett, for one, says he will support any legal action against the tax.

Not Amused

Newly appointed Foreign Minister Bob Carr blasts Palmer’s “reckless” CIA conspiracy claims

He said the “recklessly irresponsible” claim that the CIA is sponsoring a campaign against the coal industry will trigger concern from the United States government and business community.

Carr said the comments should also make many Australians question  Palmer’s links to the Opposition. He said Palmer is very close to Opposition Leader Tony Abbott and Palmer is considered the largest donor to the Liberal Party.

Foreign Affairs Minister Bob Carr

Treasurer Wayne Swan has also denounced Palmer’s claims. He supported Carr’s claim the mining businessman “is in cahoots with Mr Abbott.”

Federal Greens leader Bob Brown has echoed the remarks of Carr and Swan saying Palmer is a life member and a major donor to the Queensland Liberal National Party.

Meanwhile, Greenpeace senior campaigner John Hepburn rejected Mr Palmer’s comments as “ludicrous”. He said Greenpeace would not accept money from any government, corporation or secret service.

The mining tax was initiated almost two years ago, floated by former Treasury boss Ken Henry. It originally proposed a 40 percent tax on super profits—a proposal that stirred an industry-wide opposition rocking the Labor Party’s leadership. It was the same tax proposal that ousted Kevin Rudd from prime ministership in 2010.

Rising to power, Prime Minister Julia Gillard negotiated a modified tax rate with BHP, Rio and Xstrata although smaller miners remain unhappy with the deal.

The Mineral Resources Rent Tax (MRRT) Bill 2011 and related bills are now ready for the governor-general’s royal assent. The mining tax will start from July 1 this year, Australian media report.

The federal government estimated the new tax will generate $11 billion in three years which will be used to elevate income of the less well-off Australians. It will boost compulsory superannuation contributions, infrastructure payment and a one per cent tax cut for business.

The Australian, however, is pessimistic over the tax. Its editorial page said:

While this newspaper recognises the benefit in ensuring that some of the revenue generated by the once-in-a-generation mining boom is secured for future generations, this tax will do little to drive reform in the slower sectors of the economy while the fastest-growing sector is slugged with a tax that could damage our competitiveness.

Opposition Leader Tony Abbott supports Palmer

I defence of Palmer, Abbott said he was a “larger than life” character.

“I think when he says that the Greens want to stop the coal industry he’s absolutely right – of course the Greens want to stop the coal industry,” Abbott told Channel 10.

Abbott is vowing to repeal the tax if he wins the next election.

Blog Link: Asian Correspondent

Carbon tax unconstitutional, goes to high court

Mining billionaire Clive Palmer of Queensland Nickel

The carbon tax circus is not yet over.

Mining magnate Clive Palmer announced he will challenge Prime Minister Julia Gillard’s carbon tax to High Court saying it is unconstitutional.

Palmer said his legal advisers who are “all senior counsels with experience in the High Court” advised him to take legal action against the federal government on the ground of discriminating his company Queensland Nickel.  The Age  said his legal advice would be finalised next week and his company would probably lodge documents with the High Court by April.

Palmer said his lawyers advised him there were several grounds under which the carbon tax is unconstitutional. For one, he said his company was getting less compensation under the carbon tax than rivals BHP Billiton and Glencore.

A spokesman for Climate Change Minister Greg Combet, however, denied the claim saying the government was still awaiting audited data from nickel producers that would then be included in the compensation regulations.

The Age also noted Roland Burt, a principal at Macpherson and Kelley Lawyers, who singled out three potential avenues for a challenge. These include “Commonwealth external powers, the federal government’s power to impose taxes on the states, and the issue of whether tax law could be bundled up with other legislation.”

However, Burt doubts the success of the challenge:

”Clive Palmer will have some of the best legal minds in the country at his disposal and they will certainly put a powerful case….’But my guess is the government has thought about it all carefully enough to design it in a way that will probably – but by no means certainly – survive the challenge.

PM Gillard and her camp insisted that the carbon tax was strictly reviewed during its legislative development and has ”taken careful constitutional advice and legal advice at every stage.”

Greg Craven, a law professor and vice-chancellor of the Australian Catholic University, believes the carbon tax was ”inherently complicated” and ”was always going to end up in the High Court”.

It raised questions about the scope of taxation power, the rights of the states, the Commonwealth’s power to make laws binding the states, and the compulsory acquisition of property.

”If you were looking for a law that was born to be challenged, this is it, because there are billions of dollars at stake.

Andrew Bolt, one of Australia’s most influential columnists said, “ Palmer might be right and the carbon tax wrong.”

Blog Link: Asian Correspondent