Premier Ed Stelmach rejected the idea of a carbon tax yesterday, saying it would hurt Albertans.

"It's certainly going to hurt agriculture. It's going to hurt the manufacturing sector," Stelmach said in response to Liberal Leader Stephane Dion's carbon tax announcement last week.

"Remember, folks, we're competing with countries around the world that don't have the same rules that we're playing by. It's going to diminish our global competition immensely."

Worth $15.4 billion a year, Dion's plan would be offset by cuts in income and business taxes and in tax breaks. Stelmach said yesterday his government's calculations show "there isn't balance" between the tax and the tax breaks.

"My greatest fear is for those that are on fixed income. Your heating costs would go up, the fuel for the car would go up," Stelmach said.

The premier said his plan for carbon capture and storage is the fastest way to reduce carbon.

He added that the government is also working on changing Albertans' attitudes and behaviour in order to reduce their dependence on fossil fuels.