PM absolutely denies feud as Plibersek tries to save her bill

Environment Minister Tanya Plibersek will try to salvage a deal to set up a peak federal agency to protect the environment despite a new demand from the Greens for major changes to the law, amid talk of a feud within the ministry over a decision to shelve the reform last week.

Plibersek is promising to negotiate “in good faith” in parliament to try to rescue the Nature Positive Bill in the expectation that parliament resumes in February, setting up a test for the Greens on whether they will vote to set up Environment Protection Australia.

Environment Minister Tanya Plibersek and Prime Minister Anthony Albanese on Monday last week, the day before Albanese overruled Plibersek.Credit: Alex Ellinghausen

But Labor caucus members admitted the government was paying a political price for its handling of the reforms last week, when Prime Minister Anthony Albanese chose to shelve the laws after Plibersek had come close to a compromise with the Greens.

Albanese “absolutely” denied a feud with Plibersek when asked about the bill on ABC News Radio on Monday morning, saying instead the government had passed 45 pieces of legislation over the past fortnight.

Senior figures in the Labor caucus said Albanese had been “dismissive” of Plibersek and should have kept her involved in the decision last Tuesday to halt a deal with the Greens rather than accept the amendments they had negotiated with the minister.

A deal appeared close on Monday night, sources aware of the negotiations said, but the talks reached an impasse after 5.30pm on Tuesday when Albanese met Greens leader Adam Bandt and environment spokeswoman Sarah Hanson-Young in his office with Finance Minister Katy Gallagher, who manages government business in the Senate.

The prime minister insisted in the Tuesday meeting there would be no major changes to government bills, in line with statements he had made over the preceding days.

The talks with the Greens lasted for about 15 minutes and canvassed about 40 bills the government wanted to pass, with a message sent to Plibersek that Nature Positive was not in the agreement.

Plibersek went to the prime minister’s office later on Tuesday afternoon to confirm there was no deal on the reform, but Albanese was at an event for veterans in Parliament House and the two were unable to speak. This meant Plibersek only confirmed the final outcome at about 9.30pm.

The Greens had dropped earlier demands, such as a “climate trigger” in the bill to stop projects that increased carbon emissions and a provision to stop logging in native forests, but were facing calls from former party leader Bob Brown to hold the line against Labor.

The potential compromise on Monday last week included modest funding to monitor illegal land clearing and a plan to set environmental standards in regulation, bringing forward changes Labor had already promised to make over a longer timeframe.

But the intense debate about last week’s negotiations, including criticism of the Nature Positive package from Western Australian premier Roger Cook and strong support for it from Labor’s environmental action network, has led to doubts within the government about whether the bill can be passed.

“We want sustainability but not at the cost of industry – we want to support industry,” said one senior Labor source.

Plibersek has vowed to seek “co-operation, compromise and commonsense” to set up the EPA, a Labor commitment at the last election that has been a Greens policy since at least 2021.

“The Liberals and Nationals should support the legislation as it gives industry faster and clearer decisions,” said a spokesperson for the minister.

“The Greens should support the legislation as it gives better protections for nature.

“As the prime minister has made clear, we will negotiate in good faith across the parliament where we can secure a clear majority, consistent with our values and our positions to get the best outcome for nature and business.”

The government’s stated position remains that it wants the Nature Positive package passed without changes by the Greens.

Hanson-Young said on Monday she would demand new clauses on protecting threatened species and habitats if, as she hoped, the bill was brought back to parliament in February.

Sarah Hanson-Young will seek more changes when the EPA Nature Positive laws are discussed again.Credit: Alex Ellinghausen

The case for the reform was set out in 2021 in a review of environmental law by former competition regulator Graeme Samuel, but a vote in February will depend on whether Albanese chooses to call an election early in the new year, leaving no time for parliament.

“As MPs go home to their electorates over summer, they will hear how angry people are that big business and the mining lobby have taken the chainsaw to environmental action,” Hanson-Young said.

Gallagher told ABC Radio National last Thursday that Albanese had made it clear in the meetings on the EPA bill that he intended to deal with it in February.

Labor caucus members said Albanese and Plibersek’s relationship soured in 2013 when Plibersek backed Bill Shorten – now the government services minister – over Albanese in a leadership contest, helping Shorten secure the position.

“The PM’s attitude to Tanya was displayed pretty well by the EPA negotiation. He would have given another minister the courtesy of telling them their bill was dead,” one senior Labor source said. “He just treats her a little bit differently. He’s dismissive, sometimes a bit rude.”

Shorten said on Monday that Albanese and Plibersek had both tried to get the right outcome to protect the environment.

“The subtext of all of this was the disagreement,” he said at a press conference. “I think this is a molehill looking for a mountain, I think it is smoke looking for a fire.”

Shorten said the Greens now looked “dangerously extremist” by preventing Labor from passing the law.

“You can only help protect the environment from government, and I think both Tanya Plibersek and Anthony Albanese are doing a stand-out job.”

Cut through the noise of federal politics with news, views and expert analysis. Subscribers can sign up to our weekly Inside Politics newsletter.