Billions pledged in carbon compo - National News - National - General - Myall Coast

THE federal government will fight back today against the scare campaign over a carbon price by promising that compensation payments will be permanent and that millions of low-income households will actually be better off.

In the strongest indication yet that compensation will be delivered as tax cuts and higher welfare payments, the Climate Change Minister, Greg Combet, will pledge that assisting pensioners and low- and middle-income households will be a priority.

Of the billions that will be raised by putting a price on carbon, more than half will be dedicated to compensating the less well-off for the impact on their power prices and cost of living in general, while the remainder will be used for assisting industry and covering other transitional costs.

In an address to the National Press Club, Mr Combet will put paid to a claim by the Opposition Leader, Tony Abbott, who has been warning that the price on carbon will be permanent but compensation measures will not.

''The tax will be permanent, the compensation will be temporary and that's why you can't trust the government on this point,'' Mr Abbott said recently.