A Senate committee that has been inquiring into the carbon tax pricing mechanisms has asked the government to come clean on its modelling.

The Nationals Senator for New South Wales John Williams, a member of the Senate Select Committee on the Scrutiny of New Taxes, says it appears from the evidence taken that the Treasury modelling of the carbon tax is flawed.

He said the modelling did not take into account the effect of an economy-wide carbon tax in Australia when our major resource competitors do not have the same impediment.

“Treasury made some questionable assumptions including that there will be full employment, countries will honour their emissions reductions pledges and that there will be some form of generalised global carbon trading in place by 2016.

The government has resisted all moves to have the Treasury modelling released so it can be independently reviewed.

The committee is now calling for the release of all its modelling, including the actual models, datasets and specifications used by Treasury, and the establishment of an Independent Expert Panel to review it.

At the very least the relevant regulator should have enough resources to minimise the risk of fraud or other undesirable activities that could threaten the integrity of the Australian carbon permits.

As the committee moved around Australia it became evident there is huge concern about the ability of our businesses to remain viable and compete under a carbon tax.

Regional Australia is particularly vulnerable”, Senator Williams said.