A senior academic from the University of Western Australia (UWA) has confirmed the Abbott Government originally approached the university to set up a policy centre directed by controversial figure Bjorn Lomborg.
Dr Lomborg is a controversial figure in the scientific world, having attracted controversy in the past for suggesting the dangers of climate change are overstated and that alleviating poverty is a greater priority.
"The Federal Government approached the university," Paul Johnson Vice Chancellor of UWA said.
"It (the Government) said: 'Would the university be interested in considering setting up a centre to study long-term development goals both global and Australia?'"
A spokesman for Education Minister Christopher Pyne earlier told Fairfax that "the Government is contributing around a third of the total cost of the centre based on a proposal put forward by the University of Western Australia and Dr Lomborg's organisation".
In a statement to the ABC, the spokesman said: "The Australian Government is providing $4 million in funding over four years to the University of Western Australia to bring the Copenhagen Consensus Centre methodology to Australia. It was a policy decision of the Government to create a centre that will commission research from both Australian and international economists to inform debate around domestic and international policies."
Professor Johnson said it was correct that so far all the money for the Australian Consensus Centre had come from the Government.
The Government has cut back on other scientific research across the country.
Professor Johnson said that all past cuts implemented on research funding were very much an issue for the Government to consider.
Lomborg's advice to lead to catastrophe: Flannery
Environmental scientist and climate change writer Tim Flannery weighed in on the debate on Lateline.
"Well I was surprised to hear about the $4 million given to this Lomborg centre," he said.
"You know, the Climate Commission was abolished just a couple of years ago on the basis that the Government didn't have enough money to support the Climate Commission.
"To see the best Australians, the best-qualified Australians in the field, be let go because there was no money and then have someone from overseas just a few years later put in the place with abundant funding struck us as being odd.
"But I do get concerned when I see Government money going into a cause which is likely to misinform people rather than provide them with accurate, authoritative information."
"The one argument that he's been consistent about over the last decade is that we shouldn't do anything to reduce greenhouse gas emissions directly, we shouldn't put a price on carbon or anything like that," he said.
"You know, if we took Lomborg's advice, we'd be heading towards a world four degrees warmer than it was before the Industrial Revolution, and that's a catastrophe."
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