Hunter Valley Labor MPs revolt on $600m gas plant

Joel Fitzgibbon, Meryl Swanson back the federal government’s $600m gas plant, in a direct rebuke to shadow cabinet.

Labor MP Joel Fitzgibbon. Picture: Peter Lorimer

Hunter Valley Labor MPs Joel Fitzgibbon and Meryl Swanson have backed the Morrison government’s plan to fund a $600m gas plant, in a rebuke to opposition energy spokesman Chris Bowen and the position of shadow cabinet.

Mr Fitzgibbon and Ms Swanson, from the NSW Right, have come out and supported the plan for a gas plant in Kurri Kurri, after it was criticised by Mr Bowen and Treasury spokesman Jim Chalmers.

The project was also supported by the Australian Workers Union but opposed by the Left faction’s Australian Manufacturing Workers’ Union.

“This announcement means the creation of hundreds of quality jobs in construction and operation, which is very welcome, particularly at this time,” said AWU national secretary Daniel Walton.

Ms Swanson, the MP for Paterson where the proposed gas plant will be built, said the local community supported the project and the government needed to “get on and build it as quickly as they can”.

“No one knows what is going on in my area as well as I do. And I know what people are saying to me locally,” Ms Swanson told The Australian.

“They want the jobs that this will bring also what it ensures is that places like Tomago Aluminium continue to produce primary aluminium in Australia and we continue to make things.

“I’m looking forward to it being switched on, I hope it is not just an empty announcement to capture votes for the state government in NSW.

“My question is, is this going to be up and running before Liddell shuts? It better be.”

Labor’s Paterson MP Meryl Swanson.

Ms Swanson said she would lobby Labor MPs, including Mr Bowen, to support the project.

Mr Fitzgibbon, who represents the neighbouring seat of Hunter, said the project would help fill baseline power shortages from the closure of Liddell.

“We have a capacity gap, a generation gap, that now must be filled and filled very quickly,” Mr Fitzgibbon told Sky News.

“Now Snowy Hydro is a business enterprise, wholly owned by the Government. It will make good money out of the investment in Kurri Kurri.

“It will create jobs, it will fill the supply gap, and of course, it will put downward pressure on energy prices.”

Another Labor Right MP said it was a “mistake” for Mr Bowen to “fall for Morrison’s trap” and has undermined the party’s shift to the centre on energy policy this year.

“We were hoping Chris was not going to be Mark Butler 2.0, that is the last thing we need, so hopefully this is just a stumble,” the MP said.

The government-owned Snowy Hydro will build the open cycle gas turbine, underwritten by a $600m equity investment from the commonwealth, in a bid to ensure 1000MW can be pumped into the National Electricity Market by the summer of 2023-24.

The project, forecast to create 600 jobs during construction and 1200 indirect jobs across the state, comes after the Prime Minister last year set the private sector a target to reach final investment decisions on replacement dispatchable capacity by April 30.

Mr Bowen said the proposal “isn’t justified by the economics” and demanded the federal government release the business case for the gas plant.

“If they’re so confident that this stacks up, release the business case to the Australian people,” he said.

“Show the Australian people why the experts are wrong.

“Gas will play a role in our energy generation for the foreseeable future as we build storage and we build renewables. But this is not what this proposal is about.”

Speaking at the National Press Club in Canberra, Dr Chalmers backed Mr Bowen’s criticism of the announcement.

“If this is such a stunningly good idea why isn’t the market funding it?” Dr Chalmers said.

“Our view is $600 million is not small change. It’s a massive investment in one project. There might be other worthy projects around the country, let’s see the business case for this one in particular.”

Energy Minister Angus Taylor urged Labor to offer bipartisan support for the project.

“Labor needs to make up their minds because we want this to go ahead. We want it to be bipartisan without hiccups along the way,” Mr Taylor said.

“It must be in place by 2023 and it must be in place to ensure that we don’t see that spike in prices or loss of reliability that is so important to people right across NSW.”