Labor backs unions in energy opposition

Labor has endorsed the union movement’s decision to oppose Malcolm Turnbull’s signature ­energy policy.

Opposition energy spokesman Mark Butler. Picture Sarah Reed

Labor has endorsed the union movement’s decision to oppose Malcolm Turnbull’s signature ­energy policy and is leaving the door open to rejecting the plan for not driving greater levels of investment into renewables.

Opposition energy spokesman Mark Butler yesterday upheld the ACTU’s key criticisms of the ­National Energy Guarantee and joined with the union movement in accusing the government of failing to assist adversely affected power generation workers into new jobs.

Mr Butler said the ACTU had “raised several valid concerns” in its submission to the Energy Security Board, in which it said it could not support the NEG.

“Numerous stakeholders, including the ACTU, have raised ­serious concerns that the very low ambition of the NEG will not support a single large-scale renewable energy project over the entire decade of the 2020s,” Mr Butler told The Australian.

“This low ambition will have ­serious jobs, electricity price and reliability as well as climate impacts, and Labor shares these concerns.

“In addition, the Turnbull government’s refusal to develop policies to deliver a just transition for coal sector and other workers is gross negligence of their responsibilities and their obligations under the Paris accords.”

The ACTU submission warns that the NEG would increase ­prices, entrench the market power of the large retailers, and struggle to enforce its emissions and reliability requirements while also failing to transition energy sector workers into new occupations. “While these issues remain, we are not in position to support the NEG,” the ACTU says.

When asked whether the opposition would move to join with the ACTU in opposing the NEG, Mr Butler was equivocal. He said it would depend on the final design work for the NEG, which is still open to modification by the ­Energy Security Board.

“Labor wants to see real, credible, national energy policy that supports the inevitable transition to clean, reliable and affordable energy,” he said. “It remains to be seen whether the divided Turnbull government is able to propose, let alone deliver, such a policy.”

Mr Butler told The Australian last month he was concerned that the emissions reduction targets over the first decade of the NEG were too soft, saying Labor would “not agree to something that ties the hands of a future government from increasing ambition”.

The criticism from Mr Butler comes as the Labor states weigh up their position on the latest design work on the NEG ahead of a crucial Energy Council meeting in August.

Federal Energy Minister Josh Frydenberg will need the approval of all the states and territories as well as Bill Shorten to successfully introduce the policy.

If Mr Frydenberg wins the support of the states and territories but loses the support of Mr Shorten, there is still a risk that a handful of Coalition MPs could vote against the legislation in the ­federal parliament and block its passage.

The Victorian and Queensland governments declined to comment on the NEG when contacted yesterday by The Australian.