‘Warm but wary’: Albo and Annastacia’s relationship to be tested in energy debate

Negotiations over the coal price cap will put the relationship between Prime Minister Anthony Albanese and Queensland Premier Annastacia Palaszczuk to the test.

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The “warm, respectful but wary” relationship between Prime Minister Anthony Albanese and Queensland Premier Annastacia Palaszczuk will be put to the test, as the coal price cap debate comes to a head.

Despite there both being Labor leaders, insiders say Prime Minister Anthony Albanese should not expect any free passes from the Queensland Premier.

He will already be feeling this as Queensland pushes back the hardest when it comes to demands for compensation for any price cap.

Premier Annastacia Palaszczuk and The Prime Minister Anthony Albanese. Picture: Supplied

Tackling power prices is one of the toughest challenges faced by Mr Albanese so far and the price cap solution he has proposed is proving to be a difficult sell.

Those close to both leaders say Mr Albanese and Ms Palaszczuk get along well.

They knew each other from coming up in Young Labor and both served in transport portfolios in the early 2010s.

One Labor source said there was “political chemistry” between the two when they were together.

Not only do they see eye-to-eye on most social policy, they are both leaders who ascended from Opposition when there were low expectations that they would win.

There is also a wariness between the two.

Premier Annastacia Palaszczuk watches on as Prime Minister Anthony Albanese speaks in Brisbane in August. Picture: Steve Pohlner

The new Prime Minister does not want to get caught up in any political baggage that inevitably comes with being a leader in power for almost a decade.

The Premier does not want to get caught up in federal issues, which can conflict with the state’s agenda.

While they were not seen together much during the federal election, they keep in constant contact with each other.

They do, and have, had some policy disagreements but it has always been kept behind the scenes and out of public sight.

Prime Minister Anthony Albanese with Premier Annastacia Palaszczuk at the Labor’s federal election campaign launch in Brisbane. Picture: Sam Ruttyn

The current debate around coal price caps – which will result in the state government losing revenue from its power generators – saw one of the rare public push backs as Ms Palaszczuk declared “hands off our generators”.

But the broadside was kept on policy; it was a warning, not an attack.

Mr Albanese has too much political skin to lose in his promise to tackle power prices, and Ms Palaszczuk will not let the state lose out on a huge revenue windfall.

Wayne Goss and Bob Hawke had a strong working relationship as Premier and Prime Minister, and the current pairing has the potential to grow into something similar.

But this debate will determine what happens next.

Originally published as ‘Warm but wary’: Albo and Annastacia’s relationship to be tested in energy debate