Former New South Wales Premier Morris Iemma has become the most senior Labour party member to criticise the Federal Government’s proposed carbon tax after he warned that the legislation would lead the government to defeat in the next election.

 

Mr Iemma has said that the tax would have a limited environmental impact and would severely damage the economy after criticising the influence of the Federal Greens on the government.

 

Mr Iemma warned that the impacts of the tax would be felt hardest in New South Wales, saying the smelting, steelworks and manufacturing sectors would be seriously damaged.