Abbott plan a 'climate con job'

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New opposition leader Tony Abbot's popularity rose slightly before he released an alternative climate plan which the government has labelled a 'con job'.

Tony Abbott appears to have taken first blood at the start of a savage election-year battle with Kevin Rudd, with voters warming to the coalition under his leadership.

Just hours before he released his long-awaited climate change policy, Mr Abbott was given a boost from the latest Newspoll, which put the coalition ahead of Labor on primary votes and narrowing the gap on a two-party preferred basis.

However, Mr Abbott's real test will be how the community reacts to the $3.2 billion climate policy, that will create a fund to pay farmers and business to reduce their carbon footprint.

During a savage exchange in question time, the prime minister ridiculed the plan as a con job.

"The proposal he has put forward is nothing more than a climate con job," Mr Rudd told parliament.

He seized on Mr Abbott's change of heart on the veracity of climate change.

"He's changed his position more times than he's changed his undies," Mr Rudd said of the opposition leader.

Mr Abbott, who has labelled the government's ETS "a great big tax", fired back, claiming Mr Rudd was unfit to govern.

He seized on Mr Rudd's failure to say how much more bread and milk would cost under the government's policy.

Rather than give a price for the staple foods, Mr Rudd quoted a percentage increase.

"He's not a fit person to be the prime minister of this country," Mr Abbott told parliament.

He sought inspiration from an unusual source, former Labor prime minister Paul Keating.

"If you don't understand it, don't vote for it," Mr Abbott said.

"And if you do understand it, you would never vote for it."

The leaders' showdown at the despatch box has set the scene for what's promising to be a real election-year contest.

While Mr Rudd may be unimpressed with what the coalition has to offer on climate change, he's not dismissing the threat that Mr Abbott presents to the government.

He warned there was "no guarantee" Labor would be re-elected, reminding voters it would only take two to three per cent of people to switch their vote for there to be a change of government.

"Remember, the government's majority is eight seats, two or three percentage points. It doesn't take a lot to move that," Mr Rudd told reporters.

"We have to be really on our game."

Mr Rudd conceded that he as much as anyone was to blame for Labor's failure to sell its message properly.

"Our challenge ... is to communicate more effectively that which we've done. To communicate our record of achievement more effectively ... we all share some responsibility for that, including myself," he said.

But Mr Abbott wasn't getting carried away with the Newspoll result.

"Look, it's encouraging, but there's a long way to go," he told reporters.

"What I think it does indicate, though, is that the Australian public wants real answers now from their prime minister, they don't want a lot of vague waffle ...

"It's a sign people are unhappy at a prime minister who is increasingly all talk and no action."

There was some good news for Mr Rudd, however, as the Reserve Bank kept the official cash rate on hold, sparing homeowners the pain of higher mortgage payments for at least a month.

Mr Rudd will get some political mileage, too, from the visit of United States President Barack Obama to Australia in March.

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