Former Reserve Bank governor Bernie Fraser says the Abbott government is working in the short term interests of business and not the long term interests of the community in its policies on climate change.
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Mr Fraser, in an address to the National Press Club, has also expressed surprise at the “brazenness and scale” of the campaign waged by the government and big business against the carbon and mining taxes.
The chairman of the Climate Change Authority, which the government plans to abolish, said on Thursday that the debate over climate policy in Australia was now devoid of balance and maturity.
Mr Fraser said Australia was at risk of being left behind other countries that were acting more quickly to reduce their emissions.
“While the government professes to accept the science of climate change the indications are that it is unlikely to back that acceptance with appropriate actions,” he said.
“It's really lightening, rather than adding to the policy tool kit.
“What has been made clear is that the scale of that effort … will be determined primarily by short term budgetary considerations, not by considerations related to climate science.
“It seems clear to me that in the area of climate change policy the government is backing in business interests – and big business interests for the most part – ahead of the community interests.”
Mr Fraser criticised the government's “ongoing campaign to demonise the carbon tax” and said that as long as business and government interests were aligned, the debate about climate change in Australia would remain “lopsided for some time to come”.
The Climate Change Authority chairman expressed frustration that many elements of the government's direct action policy still had not been clarified and said the authority was not in a position to assess the potential costs of the policy as long as the details were unknown.
On Wednesday, former treasury secretary Ken Henry backed comments by economist Ross Garnaut that the Abbott government's direct action policy would cost closer to $4 or $5 billion, rather than the $1.5 billion the government has predicted.
Dr Henry also questioned how committed the government would remain to emissions reduction targets over time.
The Climate Change Authority has called for Australia's emissions reduction target to be increased from 5 per cent to 15 per cent by 2020.
Mr Fraser said on Thursday the increased target was “credible and desirable” and more in line with targets being imposed by other countries, including the United States.
Mr Fraser said the reaction from business to the proposal had been mixed and there were many small businesses who supported active policies to reduce emissions.
“But these people while they are numerous, they're often shouted out by larger companies and, I have to say, particularly the mining industry,” he said.
Environment Minister Greg Hunt's office has been contacted for comment.
