Former Labor prime minister Paul Keating has given a full-throated endorsement of Julia Gillard's carbon tax, saying it is the only way to take the Australian economy into the future.

Mr Keating last night made his first comments on the issue since the full package was announced by the Government on Sunday.

Ms Gillard has compared her carbon tax to the Hawke-Keating era reforms like floating the dollar.

Mr Keating was more than happy with that analysis.

"It's in that league, it's part of the Labor tradition of change," he told Lateline last night.

He said putting a price on carbon was vital for encouraging a shift to clean energy and rubbished Opposition Leader Tony Abbott's direct action plan to pay companies to reduce their pollution.

"You know what Tony Abbott's policy is? If you don't give me the job I'll wreck the place and we say, 'Well Tony, you better have it'. Tony's got to have the political judo chop.

"Do you think Ford and GM would be giving us cars they are giving us today if we hadn't taken the effective subsidy away, if we had just handed them money to do better, as Tony Abbott is suggesting we do with pollution?

"You'd still have the handles falling off, the old creaky doors, the low quality."

As harsh as Mr Keating's comment were towards Mr Abbott, his fiercest criticisms were for News Limited.

And he echoed Ms Gillard's attacks on the media, saying public debate has deteriorated.

http://www.abc.net.au/news/2011-07-15/paul-keating-attacks-abbott/2795514