THERE has been an acrimonious start to negotiations between the coal industry and Greg Combet, the “troubleshooter” appointed to win its support for the Rudd Government’s delayed emissions trading scheme.

The Australian Coal Association and executives from the biggest coal mining companies yesterday presented Mr Combet with an ACIL Tasman survey predicting the Government’s current arrangements for the industry would, over the first 10 years of the emissions trading scheme, force 16 coal mines in NSW and Queensland to shut prematurely, costing almost 10,000 jobs.

It said that by 2015, 7600 jobs would be lost.

But Mr Combet said after the meeting that “as a former union official I recognise an ambit claim when I see one and this is definitely an ambit claim”.

The Government excluded Australia’s biggest export industry from its arrangements to give free permits to big emitters on the grounds that the emissions produced during coal mining varied enormously from mine to mine.

It instead offered the industry a $750 million compensation package over five years.

But the industry says the emissions trading scheme will cost it $14 billion over 10 years due to the purchase of permits and increased transport costs.

And it says that over the same period, coal production will be 22 million tonnes below what is regarded as business as usual. As a result, state governments will forgo significant annual coal royalties, it says.

The industry argues the ACIL Tasman survey of mines proves the Government based its decision on faulty data and that the vast majority of mines are actually emissions-intensive enough to qualify for assistance.

It is demanding inclusion in the compensation scheme, a decision that would be worth about $500million a year to the industry, or $2.5 billion over the five years for which the industry is being offered $750million.

Mr Combet contests the modelling by ACIL Tasman, a firm of economic consultants, saying it has made “false assumptions”.

He said the modelling assumed Australia would adopt an emissions reduction target of 15 per cent of 2000 levels by 2020 and that no competing coal mining nations had a cost on carbon.

The Government has said a 15 per cent target would require significant emission reduction promises from other nations.

But the industry hit back last night, saying the Government had linked a 15 per cent target only with reduction commitments from developed nations, not the developing nations that constitute almost all its major competitors.

And it said the modelling showed even the Government’s 5 per cent unconditional reduction target would cause 11 mines to shut prematurely, costing almost the same number of jobs.

Mr Combet said the industry would be getting back to him with more data and negotiations with the coal industry would continue.

Opposition emissions trading spokesman Andrew Robb said: “The research released today is just the latest in a series of revelations that show that tens of thousands of jobs will be lost with no environmental benefit if the flawed scheme is forced through.”

On Monday, the federal Government announced significant changes to its proposed scheme, including a one-year delay and extra help for those industries that qualify for compensation.