States in Carbon Tax Revolt

Liberal States New South Wales ,Victoria and  Western Australia are banding together to oppose the carbon tax warning of heavy job losses ,power price rises and flight of capital. The shock to Australia's two speed economy will be too much for a lot of businesses on the edge and doing it tough already. Gillard has claimed that half the tax will be returned in an income re-distribution and says the rest will be paid by "big polluters" .
This attack on the "big polluters" or power generators and export industries which is what normal people call them will result in job losses and loss of export income from industries already suffering from the high Australian dollar.

JULIA Gillard is facing a carbon tax revolt from the Liberal states amid warnings of heavy job losses, unprecedented power price rises and a flight of capital as federal Labor grapples with its climate change agenda.

Victorian Premier Ted Baillieu has ignited the war with Canberra, warning the Prime Minister her government has failed to properly consult and plan for the effects of its carbon agenda.

The Weekend Australian has obtained a detailed, "Dear Julia" letter from Mr Baillieu to Ms Gillard in which he warns that the failure to consult and ad hoc planning have heightened fears of serious economic disruption.

Senior government sources said NSW and Western Australia were involved in talks with Victoria ahead of the next Council of Australian Governments meeting, where Ms Gillard will be confronted by a united anti-tax front.

NSW Premier Barry O'Farrell has warned Ms Gillard about the effects of a new tax, claiming 13,000 jobs could be lost in the Hunter Valley coalmining region.

And Mr Baillieu's response to the carbon tax is a marked escalation in state-commonwealth hostilities amid claims Ms Gillard has failed to negotiate on key issues including appropriate transitional assistance and the maintenance of security and reliability of electricity supply.

"The introduction of a carbon price will drive change in the Victorian electricity sector of a scale not previously experienced," Mr Baillieu warned.