Abbott's climate plan "a magic pudding"

Ms Gillard today toured the Hazelwood power station, one of the nation's dirtiest coal fired power stations, at Morwell in the state's east.

With the Latrobe Valley set to feel the biggest impact from the carbon tax plan, locals had called for Ms Gillard to personally explain the package to them.

Ms Gillard told residents she understands why they are anxious about the impact of the carbon tax package, but believes the region has a strong future.

She said the Government would be working alongside communities through the process.

"I am very confident that the Latrobe Valley has a bright future," she said.

Ms Gillard said the workers asked some hard questions as she explained the package away from the glare of the media.

"There's a lot of anxiety there and that's why I'm here to talk issues through with people, to be there directly available to have a conversation," she told reporters on Saturday.

The union leaders also told the Prime Minister that the Hazelwood workers deserve a fair share of the Government's compensation package and she should look after them.

Part of the Government's clean energy package includes closing some power stations, with Hazelwood thought to be at the top of the list.

Ms Gillard was unable to say if any Latrobe Valley power station would definitely close, saying it had to go through a tender process and any closure would take a number of years.

The Prime Minister says she has a fully costed, modelled carbon pollution reduction package available to the Australian people to examine and Mr Abbott has a "hocus pocus" plan that he pretends can cut carbon pollution.

She says the coalition's package will cost households $720 a year, which Mr Abbott must explain.