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POLITICAL QUESTION #1 FOR AUSTRALIAN PRIME MINISTER JULIA GILLARD

"You said [in the last election], "There will be no Carbon Tax under the government I lead", Did you lie about the Carbon Tax?"

Julia Gillard: "when I said those words I meant every one of them. During the election campaign I spoke about the need to price carbon and have an emissions trading scheme. And now we are pricing carbon - a fixed price to start with - to be followed in three years time by an emissions trading scheme that caps carbon pollution."

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