Morrison moves to appease Nats on coal-fired power plant

Scott Morrison has extended an olive branch to Nationals MPs with a feasibility study into a new coal-fired power station.

Delta Electricity chairman Trevor St Baker, left, with executives at the company’s Vales Point coal-fired power station, south of Newcastle. Picture: Mark Scott

Scott Morrison has extended an olive branch to disgruntled Nationals MPs by committing to a feasibility study into a new coal-fired power station in central Queensland, and including an upgrade of the Vales Point coal station in a shortlist of a dozen baseload power projects that could receive government support.

The Prime Minister put government backing of coal on his agenda yesterday as he declared taxpayers could underwrite a “very small” upgrade to Vales Point coal-fired power station in the NSW Hunter Valley. Five gas-fired projects and six pumped-hydro projects were included on the list of proposals the government is considering underwriting.

While Barnaby Joyce’s demand for a central Queensland coal station was not on the shortlist, Mr Morrison committed $10 million to funding a two-year evaluation of a baseload project in central or north Queensland.

This includes the assessment of a proposal for a high-energy, low-emission coal station in Collinsville in the Whitsunday region.

“We have a very specific problem in northern and central Queensland. That is, to meet the very specific industrial needs of north and central Queensland in terms of power usage,” Mr Morrison said.

“That relates especially to things like the aluminium smelter and the other heavy industries in and around Gladstone.

“There is no commitment to underwrite or support any of those projects. We want to do the proper analysis to work out which project or which group of projects actually delivers on the need.”

 

Mr Joyce was quick to applaud Mr Morrison after he mistakenly thought the government had committed to a new-coal fired power station.

“So we have got ourselves a coal-fired power station for Qld. Very good,” Mr Joyce tweeted.

He later acknowledged Mr Morrison merely announced a feasibility study into a baseload project in the region.

“It is a feasibility study and I welcome that, but we have to take the next step and the next step as quickly as possible,” Mr Joyce said.

Labor slammed the coal announcement while GetUp vowed to use it as a campaign weapon, in a promise that will unnerve Liberal MPs in affluent electorates of Sydney and Melbourne.

“Pandering to Barnaby Joyce’s tantrum on coal is a fast-track to losing votes this election, and you bet GetUp members will help make that happen,” said GetUp campaigns director Sam Regester.

Wentworth MP Kerryn Phelps, who campaigned heavily on climate change in last year’s by-election, said the Prime Minister was “hamstrung on new coal” because of the divisions in the Coalition.

“The Prime Minister is treating us like fools if he thinks we can’t see through the charade of a feasibility study when Mr Joyce is already welcoming a new power station,” Ms Phelps said.

Liberal MPs Trent Zimmerman, Trevor Evans and Tim Wilson are among those opposing government funding of coal-fired power stations. Mr Zimmerman said the Berejiklian government had been successful in the NSW election because it was “centrist” and took climate change seriously.

“The government was offering a centrist and practical approach to the issues the state faced and wasn’t burdened by the ideological battles,” Mr Zimmerman told The Australian yesterday.

“One of the key lessons is the NSW government recognises the importance of addressing climate change to the community and it wasn’t just metropolitan areas but also in coastal regional seats where this issue was important.”