Green Paper will be test of how far Rudd will go to prop up Iemma

Dr Kaye said: "Without compensation for the cost of purchasing emissions certificates, NSW electricity generators will be virtually without value to potential purchasers.
 
"NSW Treasurer Michael Costa has clearly been working hard to prop up his sell-off by lobbying his federal counterparts to water down the trading scheme.
 
"Professor Garnaut made it clear that none of the arguments for compensating the coal-fired power stations stack up.
 
"If Michael Costa trumps Ross Garnaut in today's Green Paper, 37 percent of this state's emissions will be effectively protected from the costs of trading.
 
"This is about the integrity of the scheme and its ability to reduce emissions.
 
"There are good reasons to be pessimistic about the outcome.
 
"Prime Minister Kevin Rudd has already spent a lot of political capital to support Premier Morris Iemma against the union movement and the NSW ALP head office and membership.
 
"The question that will be resolved today is will the Prime Minister be prepared to damage his climate change credibility to prop up the failing leadership of Morris Iemma," Dr Kaye said.
 
For more information: John Kaye 0407 195 455