Sydney radio station 2GB has been forced into an humiliating backflip on its bullish anti-carbon tax campaign, declaring that a planned outside broadcast at next month’s carbon tax rally will not go ahead.

The John Singleton-owned attention seekers had originally planned to broadcast live from the event on the parliament house lawns on August 16, with Chris Smith, Alan Jones and Ray Hadley all apparently keen to snag a piece of the action.

But after 2GB general manager Ian Holland recorded an interview with Radio National Breakfast yesterday afternoon on the ethics of Smith’s spruiking of the Consumer and Taxpayers Association rally, he executed a swift reverse ferret, calling back an hour later to say the carnival had been nixed.

ABC staffers were in no doubt as to what had transpired. Holland had been subjected to a barrage of probing questions from crack political reporter Alison Carabine on Smith’s plugs and was keen to contain the fallout.

Indeed, on his program yesterday, Smith was fired right up:

“Now we put out the rally call yesterday, August 16 is our date with political destiny…and if we can’t eclipse what happened in March when we had 4,000 gather around parliament house we will lose this fight.”

“We must make a bigger stand and rock the Prime Minister’s boat one final time.”

Smith had previously broadcast live from a marquee at the last carbon tax rally, alongside controversial placards sledging Julia Gillard as “Bob Brown’s bitch”.

But Holland told the ABC that the station “wasn’t helping to organise” the rally, even though it was being “promoted” by Smith. His justification for the extended protest airtime was simply that the carbon tax was “of interest to the general public.”

But perhaps it’s the public interest, rather than what the public might be interested in, that 2GB and John Singleton should be more concerned with.

Under the Commercial Radio Australia codes of practice, 2GB is “obliged to promote accuracy and fairness in news and current affairs programs”. Further, it “must ensure that…reasonable efforts are made…to present significant viewpoints when dealing with controversial issues of public importance.”

Now CRA, and the Australian Communications and Media Authority, are unlikely to act without a specific complaint. But perhaps by backing down, Holland was trying to avoid another investigation by Radio National’s Aunty stablemates Media Watch, who had previously trained its gaze on 2GB’s carbon coverage.

On his show early this afternoon, Smith acknowledged the fracas, thanking “other media outlets” for airing his views on the subject. They had tried, and failed, to “say this was an expression of bias”.

“I am paid to express opinions…I don’t work in a newsroom as an objective reporter,” Smith explained.”Why wouldn’t I let listeners know? Have a look at the polls!”

A dismayed Jacques Laxale, the former Green Loans assessor who heads rally organisers CATA and is a regular caller on Smith’s show, expressed his bewilderment when informed by Crikey that the outside broadcast wouldn’t be going ahead.

“I hadn’t heard that at all. I thought it was all set to go,” Laxale said, adding that he would get in touch with Smith to find out what went down.

Ian Holland declined to comment this morning, telling Crikey he had “said all he had to say” on the matter. A message left on Chris Smith’s mobile phone was not returned.