Stoush looms on carbon tax

Opposition Leader Bill Shorten has appointed carbon pricing advocate Mark Butler shadow climate change minister in defiance of Tony Abbott's demands for Labor to support a repeal of the carbon tax.

Mr Shorten said climate change was real and his party was determined to protect the legislated price on carbon.

Asked yesterday if there were any circumstances under which Labor would support the repeal of the carbon tax in favour of the Government's alternative policy, Mr Shorten said: "We think Direct Action's a clanger. It's a clunker.

"It's a $1300 tax on every household and we don't believe it'll achieve the outcomes that are wanted."

He said the Government should adopt Labor's plan to move to an emissions trading scheme by July 1, which would see pollution permits more than halve in cost.

The Australian Industry Group yesterday criticised Direct Action, saying the Government should at least consider allowing polluters to buy certified emissions reduction credits from the United Nations clean development mechanism.

At 75¢ a tonne, these were not only cheap but were "plentiful, environmentally sound and legally valid for counting against Australia's targets", AIG chief executive Innes Willox said.

The new Opposition frontbench includes deputy Labor leader Tanya Plibersek, who takes the foreign affairs portfolio from Bob Carr who is expected to resign soon and be replaced by former MP Den O'Neill.

Mr Shorten left many of his team in the portfolios they held in government but Penny Wong switched to trade and investment, Stephen Conroy moved to defence and Tony Burke was given finance.

As expected, Chris Bowen retained treasury. Jason Clare took the communications portfolio, Catherine King (health), Richard Marles (immigration) and Kate Ellis (education).

WA's Gary Gray stayed in resources.

Fremantle MHR Melissa Parke became shadow assistant minister for health.

Queensland Labor MP Shayne Neumann secured the biggest promotion after being named shadow indigenous affairs and minister for the ageing.

South Australian Don Farrell is shadow minister for the centenary of Anzac even though his Senate term expires on June 30, 10 months before the 100-year anniversary of the Gallipoli landings.

Labor insiders believe another sitting SA Labor senator will be asked to make way for the powerbroker, possibly Alex Gallacher.