Coalition softens stance on Rewiring the Nation clawback

Peter Dutton’s claim a Coalition government would claw back funding allocated to Labor’s $19bn Rewiring the Nation program have been blunted.

Peter Dutton on the campaign trail. Picture: NewsWire/Thomas Lisson

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Peter Dutton’s claim that a future ­Coalition government would claw back funding allocated to Labor’s $19bn Rewiring the Nation program has been blunted after the opposition committed to a swath of transmission projects in line to receive taxpayer support.

The Opposition Leader in his budget-in-reply speech last week vowed to abolish the Rewiring the Nation Fund (RTN) in an attempt to “rein in key inflationary, ineffectual, and imprudent spending measures” and free up funds for other Coalition spending promises.

But the Coalition on Tuesday pledged to retain billions in federal funding formally allotted to transmission projects via the RTN – established by Labor to deliver new and upgraded grid infrastructure and storage – thus curtailing a future Coalition government’s ability to claw back much of the $19bn fund.

Opposition energy spokesman Ted O’Brien. Picture: NewsWire / John Gass

“We have been clear: existing contractual commitments will be honoured,” opposition energy spokesman Ted O’Brien said.

The comments came after Energy Minister Chris Bowen accused the Coalition of harbouring plans to cut projects in line to receive RTN funding, demanding Mr Dutton come clean on whether he would renege on previous commitments.

“What projects are you actually going to cut, Mr Dutton? That’s the question he should answer, explain to the Australian people,” Mr Bowen said in Sydney. “Australia’s transmission grid hasn’t been invested in any meaningful way for 40 years, but we’re now using a lot more electricity, and are going to use more electricity between now and 2050 so we’re going to need to build new transmission.”

Among the projects slated to receive RTN funding is Transgrid’s HumeLink transmission line, with $1.9bn in government-backed concessional debt, subordinated notes and other financing allotted to the project.

The 365km-long high-voltage transmission line that will traverse southern NSW is considered crucial to meeting Australia’s future electricity needs as it will link the Snowy Hydro 2.0 project to the national electricity grid.

The commitment to continue with financing for HumeLink comes despite previous criticism of the project from some ­Coalition MPs, including opposition Treasury spokesman Angus Taylor whose electorate of Hume will host a significant portion of the transmission lines.

In a statement on Tuesday, Transgrid threw its support behind the RTN, despite the ­Coalition’s attacks on the $19bn transmission investment fund.

“The fund was established to accelerate the delivery of important transmission projects and provide investor and industry confidence in our energy future,” a Transgrid spokesman said.

Transgrid’s HumeLink project is slated to receive funding via Labor’s Rewiring the Nation program. Picture: Martin Ollman

Through the RTN, the Albanese government has similarly pledged to provide a concessional loan covering 80 per cent of the construction costs of Marinus Link, an undersea electricity cable across the Bass Strait. The project’s cost is estimated to be $4.8bn by the Australian Energy Regulator.

The remaining 20 per cent share of the project cost will be funded via an equity investment between the federal, Victorian and Tasmanian governments, with the commonwealth expected to contribute almost half that investment.

Despite Mr Dutton’s pledge to scrap the RTN, Tasmanian Energy Minister Nick Duigan last week said the Marinus Link, in which the state government will retain a 17.7 per cent stake, had the support of the Coalition.

“Our plan has the backing of both sides of politics in Canberra and we will continue working with the federal government over the years ahead through our joint investments in Project Marinus,” Mr Duigan said.

As much as another $1bn in low-cost debt has been allocated via the RTN for the redevelopment of Tasmania’s Tarraleah Power Station and Lake Cethana Pumped Hydro, as well as $490m for expenditure on land acquisition for a renewable energy zone located near Dubbo.

The RTN program has also reached “agreed priorities” for funding in other states and territories, with as much as $5.5bn allotted for projects across Victoria, Western Australia and the Northern Territory.