Green programs axed to pay for floods

Green programs have been hit hard by spending cuts to help pay for rebuilding in flood-devastated parts of Australia.

They include Julia Gillard’s much derided $394 million “cash for clunkers” program, an election promise designed to get older cars off Australian roads.

Other programs axed include the green car innovation fund and the green start fund.

Savings have also been found across the forward estimates in the solar hot water program and the solar homes and communities program, and in funding for the global carbon capture and storage institute.

“On climate change we will be saying to every member of parliament, these are right cuts to make,” the Prime Minister told the National Press Club.

Explaining her decision to cut some of the government’s signature green programs, Ms Gillard said the key to her decision was her determination to deliver a carbon price.

“There is complete consensus that the most efficient way to reduce carbon is to price carbon. Some of these policies are less efficient than a carbon price and will no longer be necessary - others will be better delayed until a carbon price’s full effects are felt,” Ms Gillard said.

“We looked at these programs, we looked at the determination the government has to price carbon, we determined the most economically efficient thing to do was get that price on carbon.

“We are obviously, always, looking to make sure that measures in the budget we spend taxpayers’ money on are the most effective measures we can design.”

Deputy Greens leader Christine Milne said the party would seek to overturn cuts to green initiatives.

Senator Milne said the balance of power party supported a flood levy.

But she said corporate tax cuts planned for July 2013 should be deferred, although tax relief for small businesses should stay rather than cutting into green initiatives.

“It beggars belief that the government would choose to cut climate change programs like solar flagships, energy efficiency and the solar hot water rebate to fund disaster relief when such disasters will be made worse by climate change,” Senator Milne said.

She said the Greens had not discussed the proposed levy with the government before the Prime Minister’s announcement today, but the party would now seek discussions with the government “as soon as possible”.

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