Tom Tate
Tom Tate Supplied

Gold Coast to fight carbon price

GOLD Coast Mayor Tom Tate has written to the mayors of 103 councils facing the prospect of paying the carbon price asking them to join him in "boycotting this tax".

Cr Tate has also written to Clean Energy Regulator chief executive Chloe Munro signalling his council's intention to fight paying the carbon price, which comes into effect on July 1.

Gold Coast City Council was among the 104 local authorities to this week receive a letter from the CER warning of a potential carbon price liability.

Not all of the councils to receive the letter will end up paying the tax.

Cr Tate, who was only elected mayor last month, on Thursday wrote to Ms Munro indicating the council was seeking "detailed advice on our constitutional options".

"It is my strong view that councils should not be the collection agency for the Australian Government and this insidious tax," wrote Cr Tate, who ran as Liberal Party mayoral candidate on the Gold Coast in 2008.

In his highly political missive to the mayors, Cr Tate took aim at the Gillard government, claiming it had "forgotten ordinary Australians".

"I am asking you to join me in boycotting this tax," he wrote.

"Advice provided to me indicates there could be strong constitutional grounds on which we could appeal our possible liability."

Queensland Premier Campbell Newman made similar threats last month ahead of attending his first Council of Australian Governments meeting in Canberra.

He chose Federal Budget day to quietly announce he was abandoning the plan.

Climate Change Parliamentary Secretary Mark Dreyfus told ABC radio on the Gold Coast on Thursday the government was "absolutely confident that there is a constitutional basis for this carbon price".

He said there was no legal basis for Cr Tate's threat.

"My message to Tom Tate is to communicate with the Department of Climate Change in Canberra. I'll be making sure that the department is getting in touch with him to make sure that he's got some more information about the way in which our policy is going to produce good environmental and good economic outcomes and the way in which he can do the calculation which he says he hasn't yet done," Mr Dreyfus said.

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