Labor turns dark on coal despite export boom

Labor has dumped supportive references to coal in its draft policy platform ahead of next month’s national conference, despite the sector’s $124bn in export revenues.

Labor Energy Minister Chris Bowen at the Orica gas plant on Kooragang Island in the Hunter Valley this week.

Labor has dumped supportive ­references to coal in its draft policy platform ahead of next month’s national conference, despite the sector’s $124bn in export revenues helping the Albanese government deliver Australia’s first budget ­surplus in 15 years.

The ALP’s draft national platform, seen by The Australian, has dropped two paragraphs from the 2021 platform that backed the role of coal in the economy and in ­regional communities.

The draft platform was compiled by a group of Labor MPs, party members and unionists, known as the national policy forum. The draft will be debated at national conference in Brisbane in August, with the final version binding federal Labor in the next term of parliament.

The draft platform does not say anything positive or negative about the coal sector, giving ­Anthony Albanese the discretion in the next parliament to retain his market-based policies on developing the resource or to change tack and restrict the opening of new mines. The platform retains supportive references to the gas industry but with a new emphasis on the sector reducing its own emissions and contributing to Australia reaching a net-zero emissions by 2050.

“Labor recognises the critical role that gas has and will continue to play in the Australian economy,” the draft platform says.

“Labor also recognises that gas and methane are powerful greenhouse gases and the gas industry must contribute its share of emissions reductions to achieve net zero emissions by 2050. Labor’s policies will support Australian workers and communities in the gas extraction ­ industry, and the federal Labor government will ensure the gas industry plays its role in achieving net-zero emissions, including through the safeguard mechanism.”

But the draft document removed references from the 2021 platform supporting “new gas ­projects and associated infra­structure”.

The only mention of coal in the draft platform is supporting communities after coal-fired power stations shut down, which was also in the 2021 document.

“Labor will establish a statutory authority charged with mitigating the adverse impacts of coal power station closures on regional workforces and communities,” the draft platform says.

A government source played down the omission, saying it was part of the party’s plan to streamline the platform from 149 to 99 pages.

The government source noted there was also no specific mention of other minerals, including iron ore. Resources Minister Madeleine King said Australia’s prosperity had been “built on, and will continue to grow from, the efforts of workers in the resources sector right around the country”.

“No matter what the resource, Labor has always supported mining workers and we always will,” Ms King said.

The draft of the 2021 platform also had no reference to the coal sector but this was amended at that year’s national conference after complaints were lodged by pro-mining MPs and unions.

Labor senator Helen Polley, who was part of the national policy forum that compiled the draft, said it was unlikely there would be any push this time around at national conference to insert pro-coal paragraphs into the platform.

“I haven’t heard anything at all around those issues. I’m not expecting for us to revisit that,” Senator Polley said. “It’s not the feel I’m getting around caucus. I don’t expect it to change.”

Senator Polley said the “focus of the government has been around renewable energy”.

“Climate change is a big part of the platform. That’s just where the party has moved to. The party and government of the day, we don’t always drive together, on this issue though it’s clear we want to move forward,” she said. “It’s a reflection of where we’re at.”

Former Hunter MP Joel Fitzgibbon – who fought for pro-coal amendments to be inserted into the 2021 platform – questioned whether there had been a “typo”in the draft document given coal’s contribution to the government’s $19bn surplus in the year to May. “It has to be a typo because the party’s support for the coal mining has been as strong as the boost the sector has been providing for both the economy and government revenues,” Mr Fitzgibbon said.

Senior Labor MPs were not aware the draft platform had removed the support for coal, but said it had the potential to needlessly anger stakeholders and constituents.

Some MPs warned removing the paragraphs could undermine the good faith the party had worked to instil in coal communities after Bill Shorten’s disastrous 2019 election campaign.

Mr Albanese vowed ahead of the last election that Labor would do nothing to get in the way of coal exports, backing new mines if they met environmental approvals. In government, Mr Albanese has been under assault from the Greens for refusing to block new coalmines and gas developments.

Labor holds four seats in the coalmining region of the NSW Hunter Valley and is aiming to improve its standing in Queensland after winning just five out of 30 seats at the last election.

Energy Minister Chris Bowen this week campaigned in the Hunter Valley, promoting the region’s future in the clean energy economy. Mr Bowen on Wednesday named the Hunter Valley as Australia’s second offshore wind zone, while on Thursday he provided $70m to support a hydrogen hub in the region.

“Hydrogen will be absolutely central to Newcastle’s future,” Mr Bowen said. “I mean you can ­really consider any vision for green hydrogen, and if Hunter is one of the first cities or regions in the country, indeed the world, adopting it, then all those opportunities are available for green hydrogen production right here in Newcastle.”

In Germany this week, the Prime Minister talked up Australia’s potential to be a green hydrogen exporter as he joined the G7“climate club”.

“We know that there has ­already been substantial discussions between the private sector in Australia with their counterparts here in Germany, looking at the transition and the opportunity that it creates in green hydrogen and in other new industries,” Mr Albanese said.

Labor MP Mike Freelander – whose outer-Sydney electorate is near a coalmine – said he was not surprised the references to coal were removed from the draft platform. But he said the government’s “pragmatic approach” to tackling climate change would continue. “We recognise that coal be required for the foreseeable ­future, particularly metallurgical coal,” he said.

Queensland Labor MP Graham Perrett said there was no need to get “too energised” by the omission of coal. “I wouldn’t be too concerned by that,” he said.

“The industry support that we have got there is strong and focused and fair dinkum. As we transition as a nation, obviously coal will play a place.”

Minerals Council of Australia chief executive Tania Constable said the ALP had a “tradition of supporting workers and communities engaged in important export industries”.

“We are not expecting that to change. The platform is a matter for the ALP,” Ms Constable said.