Teal MPs split over compensation for coal companies
Teal independents Kylea Tink and Zoe Daniel are split over the Albanese government’s compensation package for coal companies.
Federal teal independents are split over the Albanese government’s compensation package for coal companies, with North Sydney MP Kylea Tink warning Australians will ultimately pay for the deal through their taxes, while Goldstein MP Zoe Daniel says the reimbursements are a necessary evil.
The Australian has previously revealed compensation for coal-fired power stations and companies could surpass $1bn, with the Queensland and NSW governments both negotiating packages of about $500m to offset supply contracts above the $125-a-tonne cap set by the commonwealth.
Ms Tink said she did not support compensating power stations, labelling the level of compensation being handed to multinational companies such as Rio Tinto as “disappointing”.
She warned household and business savings from the artificial $12-a-gigajoule cap on gas prices would ultimately be eaten up by a concomitant rise in taxes.
“As a result of this compensation, Australian consumers may avoid paying rising prices through their gas bills but will pay for it through their taxes. It’s pretty crazy and essentially creates an environment dominated by smoke and mirrors,” Ms Tink told The Australian.
“Australian governments can no longer allow foreign fossil fuel companies to dictate business terms when it comes to how Australians access our own sovereign resources.”
Despite being elected on a platform of ending subsidies for fossil fuel companies, Ms Tink voted in favour of the government’s legislation and agreed compensation for coal-fired power stations represented a form of subsidy. But she argued existing supply contracts needed to be honoured if Australia was to remain a reliable international business partner.
In the October budget, Treasury predicted electricity bills would rise by 63 per cent over the next two years, but the new price caps are expected to reduce the increase to 47 per cent. The new caps are aimed at saving Australian households about $230 on their power bills.
Ms Daniel, the former ABC broadcaster who defeated Liberal MP Tim Wilson in May, said compensation had been implied in the legislation and is a “matter for the states”.
She said blame for the country’s energy crisis needed to be laid at the feet of the previous Morrison government, alleging they had “actively sabotaged” efforts to decarbonise the nation’s energy systems for 10 years.
“We had to act to provide relief for consumers, both commercial and domestic, who were confronted with crippling energy costs, threatening living standards, business viability and jobs,” she said.
“This would not have been the case, nor would this support for fossil fuel interests, if the previous government had not only been asleep at the wheel, but for a decade actively sabotaged steps to expedite the transition to cleaner, cheaper and more reliable sources of energy.”
More Coverage
These tariffs aren’t about economics, they are about bargaining
Donald Trump sees his threat of tariffs as a powerful lever to use in negotiations with other countries. It’s all about parleying, not economics.
Lattouf ‘pushed back’ on ABC social media edict
The fill-in radio host refused an ABC management request to stop posting on social media during her week-long stint after she was informed of complaints from listeners about her stance on the Israel-Palestine conflict.