National to reconsider the controversial carbon tax

controversial carbon tax is back on the drawing board.

Prime Minister-elect John Key has told a Federated Farmers meeting in Wellington that all options are back on the table, with the emissions trading scheme delayed for at least a year while it is reviewed.

Mr Key says National's agreement with ACT provides for a carbon tax to be looked at as an alternative to the scheme, which he says will be done.

"I'm not ruling it out. We wouldn't have put it in the agreement with ACT unless we were going to take it seriously, but let's see how it goes."

Mr Key says the argument for a carbon tax would have to be pretty good to persuade National it is a better way to go.

Labour leader Phil Goff is accusing National of flip-flopping, saying even before Mr Key's new Government has been sworn in it has made a major U-turn. He says National bitterly opposed a carbon tax in the past, but is now considering it.

Mr Goff says National promised during the election campaign there would be an emissions trading scheme, but it now looks like it is reneging on that pledge.