PM Malcolm Turnbull changes energy policy to appease rebel MPs
MALCOLM Turnbull has radically changed his energy policy in a desperate bid to prevent a possible leadership challenge, as Home Affairs Minister Peter Dutton claims the PM has his support.
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PETER Dutton has shot down claims that he is considering taking a tilt at the coalition leadership.
Speculation is rife that Prime Minister Malcolm Turnbull is in trouble amid internal divisions over energy policy, and a radio interview where Home Affairs Minister Dutton said further disagreements could lead to his resignation from cabinet.
“In relation to media stories today, just to make very clear, the Prime Minister has my support and I support the policies of the Government. My position hasn’t changed from my comments last Thursday,” Mr Dutton tweeted. But assurances did not go far in quelling speculation.
In relation to media stories today, just to make very clear, the Prime Minister has my support and I support the policies of the Government. My position hasn’t changed from my comments last Thursday.
— Peter Dutton (@PeterDutton_MP) August 17, 2018
“When Peter Dutton is prime minister, it’s good to know we’ll have a Labor opposition who will continue to swiftly pass his refugee and law & order bills through Parliament,” Greens MP Adam Bandt tweeted in response.
It cames after Turnbull caved in to Liberal conservatives’ demands and dumped plans to legislate Australia’s emissions reduction commitment to the UN Paris Agreement.
The Prime Minister made the major concessions yesterday as he scrambled to save his signature energy policy from destruction from angry elements of his backbench.
The climbdown comes amid tensions over Mr Turnbull’s leadership, with rivals fuelling speculation of a potential switch to Home Affairs Minister Peter Dutton.
The National Energy Guarantee — which could have been opposed by up to 10 Coalition MPs — will now be massively overhauled with a major emphasis on driving down electricity prices through heavy-handed regulation.
News Corp understands the commitment to the international Paris Agreement — to reduce emissions within the electricity sector by 26 per cent on 2005 levels by 2030 — will be set by regulation, which is controlled by the stroke of a minister’s pen.
Any future changes to the regulations would have to be supported by independent advice from the Australian Competition and Consumer Commission and the Energy Security Board to ensure they would not increase energy prices.
MORE: Rebel Coalition MPs told ‘pull your heads in’
The Turnbull Government could also accept demands from backbenchers to force electricity giant AGL keep NSW coal-fired power station Liddell open until at least Snowy 2.0 pump-hydro project becomes operational next decade.
The about-face from the government came after a growing number of Coalition MPs threatened to cross the floor and vote it down should the target be put to parliament.
Mr Turnbull, Treasurer Scott Morrison and Energy Minister Josh Frydenberg will also spend the weekend finalising a package from last month’s ACCC Retail Electricity Pricing Inquiry, which will have a direct impact on price. To ease concerns the guarantee would not do enough to directly lower prices, it will adopt several recommendations including vowing to hit power companies with regulation to stop them gouging consumers.
The changes are expected to go to Cabinet on Monday night and back to the Coalition party room next Tuesday.
This is turn is expected to improve Mr Turnbull’s chances of securing an agreement with the states and territories to approve the NEG.
The late move comes after reports that conservative MPs were urging Home Affairs Minister Peter Dutton to launch a leadership challenge against Mr Turnbull.
Labor frontbencher Anthony Albanese said today that Mr Dutton had revealed his intentions on radio yesterday but accused him of merely being a “glove puppet for Tony Abbott”.
“Peter Dutton went on radio yesterday and outlined the path he is considering, resigning from Cabinet to go to the backbench to challenge Malcolm Turnbull,” Mr Albanese said.
“That now has been laid bare for all to see. This is a government in absolute chaos. We know that Peter Dutton is just a glove puppet for Tony Abbott, back there on the backbench causing all of this chaos.”
But Mr Dutton said on 2GB yesterday: “I’m not going to be part of the cabinet and then bag the Prime Minister out.”
“I have the utmost respect for my colleagues and if I have something to say, I will say something in private and that is my responsibility as a cabinet minister.
“If my position changes — that is, it gets to a point where I can’t accept what the government is proposing, or I don’t agree — then the Westminster system is very clear: you resign your commission, you don’t serve in that cabinet and you make that very clear in a respectful way.”
Originally published as PM Malcolm Turnbull changes energy policy to appease rebel MPs