Abbott 'optimistic' on carbon tax repeal despite crossbench senator's concerns

The carbon tax repeal looks set to pass the new senate after July 7 but the prime minister declared he would take nothing for granted.

With Labor and the Greens blocking the legislation, the government needs six of the eight crossbenchers. Clive Palmer has committed Palmer United party senators Glenn Lazarus, Jacqui Lambie and Dio Wang to the repeal, joining the Family First senator, Bob Day, and Liberal Democrat senator, David Leyonhjelm. The Democratic Labour party senator, John Madigan, confirmed to the Guardian on Friday that he would vote for the repeal.

In spite of reports that Madigan would join senator-elect for the Australian Motoring Enthusiasts party, Ricky Muir, to leverage support for the car industry, the DLP senator said that he had never met his fellow Victorian senator and they would not be voting as a bloc.

“I have never met Ricky Muir. I have never spoken to Ricky Muir. I have never spoken to anyone who purports to represent Ricky Muir,” said Madigan.

Madigan said while he was concerned about the cuts to the automotive transformation scheme, his vote on the carbon tax repeal was not linked.

Speaking a day after the bill passed the lower house, Tony Abbott said he was “optimistic” it would pass in the senate.

“I am taking nothing for granted but I look forward to the government and crossbenchers keeping their commitments to the Australian people,” the prime minister said.

“This bill has got to go to the Senate and I am optimistic it will pass.”

Nick Xenophon has indicated he wants more time to consider the detail and Muir said all options were on the table as he has yet to receive a briefing on the bill.

"I know it might sound churlish to some but I wouldn’t mind seeing some details," said Xenophon.

Muir said he was very concerned at the potential loss of jobs in the car industry as a result of the government cutting the automotive transformation industry program, which ends three years earlier than under Labor.

“I’m very concerned about the potential loss of jobs in the industry and as far as the carbon tax is concerned, I’m yet to have a briefing on the matter,” he said.

In the budget, the government cut $618.5m over eight years by ending the scheme from January 2018, cutting the total funding back to $1bn over five years.

At the time the treasurer said it reflected decisions by car makers to pull out of Australian manufacturing by the end of 2017. Ford ends in late 2016 and Holden finishes at the end of 2017.

Abbott said the government had confirmed $1bn for the automotive transformation scheme in the budget.

“It is in place, it was confirmed in the budget, there is $1bn available to manufacturers and the automotive parts industry over the next five years,” the prime minister said.

Clive Palmer announced on Wednesday his senators would vote to repeal the carbon tax but would vote against axing the Climate Change Authority, the Clean Energy Finance Corporation and the renewable energy target.