PRIME Minister Julia Gillard has admitted she promised there would be no carbon tax during the election and said circumstances had changed.
She qualified her comments made a week before the August 2010 poll, arguing her Government had wanted to legislate for an emissions trading scheme.
"Yes, I did say that and circumstances have changed," Ms Gillard told Channel 9 today.
"What my vision was was to be elected as Prime Minister and to introduce an emissions trading scheme, which is not a carbon tax."
With the electorate returning a hung parliament, Ms Gillard was forced to deal with the Greens to form a minority government.
The pact led to the establishment of a multi-party climate change committee, which included Greens members.
Last week, Ms Gillard announced a carbon tax would begin in July 2012.
The Prime Minister explained that a fixed-price period, for an interim three to five years, would effectively operate as a carbon tax.
"A carbon tax is where you fix price," Ms Gillard said.
"An emissions trading scheme is where you fix quantity and allow the market to sort out price ... that's what I wanted to do."
The Greens are pushing to have petrol included in a carbon tax regime, something which Labor is lukewarm on.
The plan - yet to be finalised - excludes agriculture from the carbon price, but includes the transport and energy sectors.
Greens deputy leader Christine Milne said on Friday she wanted fuel included.
But Ms Gillard said this was not a foregone conclusion.
"I understand that the deputy leader of the Greens, Christine Milne, made some statements about this matter," she said.
"Those statements, in my view, were not appropriate in the sense these discussions are still to come and discussions are to be taken."
