Carbon tax switch will be tough

Greg Combet says switching from the carbon tax to an emissions trading system quickly could be very difficult. Source: News Limited

DUMPING the carbon tax early would be difficult, Greg Combet has warned as Labor seeks to justify abandoning its September 14 election date promise.

The admission which casts doubt on Kevin Rudd's first promise as returned leader came as Mr Combet, who is retiring from parliament, said it had been a "bruising" period in politics and a that there had been a "battle of moralities" within Labor.

He warned that moving the carbon tax, due to rise to $24.15 a tonne tomorrow, early to an emissions trading scheme to fulfil a promise Kevin Rudd made last year will be difficult. Regulators would need to be established and a new round of negotiations undertaken with Europe, where the price is currently around $6.50, in order to link Australia's scheme earlier than 2015. It would also require legislative change.

"There's also fiscal consequences and I think at the end of the day it's a matter of weighing up the policy and political merits of that proposition with the fiscal consequences and some of the practicalities that would have to be dealt with," he said.

Meet The Press Ep19 Seg 1

Mr Combet told Channel 10's Meet the Press he was leaving politics to spend more time with family and friends and to better look after his health.

"It has certainly be a very bruising affair when you reflect over the last three to four years, there has been a set of competing moralities," Mr Combet said.

"That's whats has been so difficult for so many in Labor. Yes it was brutal how Kevin Rudd lost the leadership, the process over the last three years has also been very brutal."

Kevin Rudd's return has improved Labor's chances of winning key seats in Labor heartland, a poll shows.

Mr Combet said he had been encouraged by Labor's poll rebound since Kevin Rudd returned and that his departure from politics was not because of Julia Gillard's ousting.

Deputy Prime Minister Anthony Albanese played down the prospect of parliament returning before an election is called which would mean any promised change to the carbon tax would be taken to an election.

Speaking on Sky' News Australia, Mr Albanese said the September 14 date was only named to stop the Coalition speculating while parliament was still sitting.

Tony Abbott says he isn't surprised that a new poll shows Kevin Rudd closing the gap in the preferred Prime Minister stakes.

"There might be some slight change ... it won't be on grand final day," Mr Albanese quipped.

He said guidelines governing a local government referendum planned to coincide with the federal election were a consideration for determining the poll date.

"It is possible to bring forward the election date and still have the referendum ... you can bring it forward to mid-August," he said.

Tony Abbott fires back at Kevin Rudd's suggestion his asylum seeker policies might cause war with Indonesia. And pays respect to Julia Gillard as a 'formidable opponent'. Bolt Ep 17 Seg2

A decision on the date will not be made "in a rush", he added.

Labor would likely face opposition from the Greens if it attempted to legislate the change.

Mr Albanese, who confirmed Labor would keep the nation guessing on an election date but said late August remained a possibility for the poll.

Meet the Press, Ep19, Seg 4

Opposition Leader Tony Abbott believes Mr Rudd will hold off calling a date.

"I think there's every likelihood (Mr Rudd) will try to hold on to office for as long as possible,'' Mr Abbott told Network Ten.

"I don't think the public want the election delayed a moment longer. I think they are yearning for the chance to choose their prime minister and choose their government.''

he also said he wasn't surprised by a new poll which shows 51 per cent of voters prefer Mr Rudd as prime minister compared with 34 per cent backing Mr Abbott.

"I always have said winning government from opposition is like climbing Mt Everest," he said.

"We've always said that the polls would tighten, they would have tightened under Julia Gillard, of course they have tightened under Kevin Rudd. That's what I would expect."

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