Queensland Federal MP and businessman Clive Palmer has confirmed he will help Prime Minister Tony Abbott scrap the carbon tax but only if power companies are required by law to pass savings on to households.
Mr Palmer has also said he will support moves to repeal the mining tax providing the Government keeps a program to support the orphans of fallen Diggers.
The MP issued his new demands yesterday as he suggested a damages claim one of his mining companies was threatening against the WA Government could cost the State as much as $1 billion.
Mr Palmer said yesterday his Senate "team" would support the repeal of the carbon tax.
"If the Palmer United Party senators are to support a repeal of the carbon tax it will be under the proviso that the savings, by law, are transferred into lower energy costs for everyday Australians," Mr Palmer said.
In return for supporting the axing of the mining tax, Mr Palmer has demanded the Government retain an education scheme for the children of soldiers killed and wounded in action.
The scheme was part-funded by the mining tax. "If a person has made sacrifices for their country it's an absolute disgrace for a government to attack their children," he said.
Mr Palmer said that one of his mining companies, Australasian Resources, could stand to reap millions of dollars in compensation because of a refusal by the WA Gov-rnment to assess its claim over an iron ore project in the Pilbara.
"It could cost the West Australian taxpayer $1 billion," Mr Palmer said.
Colin Barnett has said the company's development proposal for the Balmoral South project had been rejected because it was "manifestly inadequate".
The Premier played down the prospect of hefty damages in Parliament this week, suggesting even if the proposal had been properly ass-essed it would not have proceeded.
"The company concerned has not to this point sought damages," Mr Barnett said.
"I do not know whether it will or not. What would the case be?
"That a manifestly inadequate proposal was rejected on advice, when it should have been assessed and then rejected?
"That is the totality of the event."