Labor to back $50m grants for fracking

Labor will join the Morrison government in voting against an ­attempt by the Greens to block grants to Empire Energy for its NT fracking project.

A gas well in the Northern Territory's Beetaloo Basin.

Labor will join the Morrison government in voting against an ­attempt by the Greens to block $21m grants to Empire Energy for its fracking project in the Northern Territory’s Beetaloo Basin.

The Morrison government’s $50m of funding for drilling in the basin is part of the Coalition’s “gas-led recovery” to stimulate economic growth as Australia emerges from the pandemic.

Of the $50m, Resources Minister Keith Pitt has awarded $21m in grants to Empire Energy, which has donated to both major political parties. Its chair, Paul Espie, is a frequent Liberal Party donor.

The opposition’s caucus agreed to oppose a disallowance motion by the Greens to prevent the $50m of grant funding in the Beetaloo Basin to help gas operators speed up exploration and development of the region, but the position led to an outbreak of controversy within the caucus meeting on Tuesday morning.

Labor Left MPs Ged Kearney and Malarndirri McCarthy were among those to voice opposition to the position recommended by shadow cabinet.

Pat Dodson and Warren Snowdon, while not being opposed to the position, noted the importance of consultation with Indigenous Australians for major projects.

Senator McCarthy is a member of a parliamentary committee investigating oil and gas exploration in the basin.

The Senate committee, dominated by Greens and Labor senators, published its interim report on Tuesday.

It recommended the Department of Industry urgently launch a review into “perceived conflicts of interests” between the Liberal Party, Energy Minister Angus Taylor, who travelled to the Basin on an Empire Energy-funded trip, and Resources Minister Keith Pitt.

The committee also urged the federal and Northern Territory governments, in collaboration with stakeholders, to review the consultation process that was used to obtain “free, prior and informed consent” from traditional owners and Native Title holders.

The inquiry heard opposition by some traditional owners, who said they feared fracking would harm their communities’ water.

Labor faced fierce backlash from the Greens and environmental groups on Tuesday over backing the grant funding.

Anti-fracking group Protect Country Alliance said it was “outraged” both major parties would unite to block the motion.