Policy of underwriting project is best for energy production: Pitt

Pauline Hanson is seeking to hold the federal government’s $144 billion in tax cuts to ransom for a new coal-fired power station.

Keith Pitt: ‘We have a mandate.’ Picture: Lyndon Mechielsen.

Nationals MP Keith Pitt believes the government’s proposal to underwrite power-generating projects is the “most effective” way to support new energy production, rejecting Pauline Hanson’s call for a taxpayer-funded coal-fired power station.

Senator Hanson yesterday vowed to hold the Morrison government’s proposed $144 billion tax cuts to ransom in a bid to have $25bn set aside to fund three schemes, including a new coal-fired power station.

Mr Pitt, the member for Hinkler, was one of six Queensland Nationals who wrote to party leader Michael McCormack ahead of the May 18 election, calling on him to “take immediate ­action” to underwrite a power station in regional Queensland.

Yesterday, Mr Pitt stood by the policy, announced before the election in response to the letter, and accused Senator Hanson of attention-seeking.

“We have a mandate from the Australian people; they accepted our (tax concession) proposals at the election,” Mr Pitt said. “This is just a scream for attention.”

In response to the Nationals’ demands, the Prime Minister listed 12 energy projects, five gas, six hydro and one coal-fired, that could be given federal support.

At the time, Mr Morrison said the government would not invest in the projects but would underwrite a price position to give ­financial assurance. He pledged $10 million towards a study into the viability of the mothballed Collinsville coal-fired power station, south of Townsville.

Yesterday, Mr Pitt said the government’s existing policy was the best way to support the creation of new power stations.