Hockey says no compo in carbon plan SHADOW treasurer Joe Hockey has backtracked from his comment that businesses affected by the abolition of the carbon tax would be compensated on a case-by-case basis. Asked on Monday what a coalition government would do to compensate those businesses, Mr Hockey told reporters in Launceston: "We will consider it on a case-by-case basis and we have allocated funds under our Direct Action plan to deal with initiatives that are under way." Mr Hockey later said businesses would get incentives to cut emissions rather than compensation. He told AAP in a statement the coalition's Emission Reduction Fund (ERF) would "provide incentives for businesses to cut emissions on a case-by-case basis, decided on the lowest cost per tonne of abatement." "The coalition will not be paying compensation for repeal of the carbon tax," Mr Hockey said. In addition, a coalition government would provide $150 million for "geothermal, tidal and solar towns and schools." In his earlier remarks, Mr Hockey said the cost of the tax to households and business was "far greater than any money that is coming out of Canberra to compensate individual businesses." Climate Change Minister Greg Combet said Mr Hockey had admitted that repeal would trigger compensation claims from companies which have made investment and business decisions based on a price on carbon. The coalition was struggling to show how its policy would cut emissions by five per cent by 2020, he said. Instead, its ERF would be given $3 billion for clean energy projects.