Nationals demand PM reject Finkel over clean energy target

The Nationals have sent a message to Malcolm Turnbull to repudiate the central finding of the Finkel review.

Nationals veteran Ron Boswell proposed a motion rejecting the clean energy target. Picture: Richard Waugh

The Nationals have sent a message to Malcolm Turnbull to ­repudiate the central finding of the Finkel review for a clean energy target and eliminate subsidies for renewables to maximise the difference with Labor over surging power bills.

As the Prime Minister comes under growing pressure to make a decision on the target, with Bill Shorten saying its adoption would help avert a forecast 1000 megawatt shortfall in baseload power by 2022, the Nationals federal conference in Canberra yesterday voted to “reject the Finkel proposed clean energy ­target of 42 per cent of renewable energy by 2030”.

Nationals leader Barnaby Joyce said the motions put at the conference — the first in three years — reflected the deep angst in regional ­communities about the affordability of electricity and took aim at the “heroic sort of fantasia’’ position of the Labor Party on renewable ­energy.

The Nationals’ policy shift comes ahead of today’s meeting between Mr Turnbull and Energy Minister Josh Frydenberg with AGL boss Andy Vesey to discuss the future of the company’s coal-fired Liddell power station in NSW, due for closure in 2022.

With the government aiming to extend its life by another five years, Scott Morrison yesterday said he was happy to help ­ensure that AGL “actually sell Liddell to a responsible party, which is what Andy said they were prepared to do when I was in the room”.

“It’s very important we keep Liddell open,” the Treasurer told the ABC’s Insiders.

“I think those who are trying to shut Liddell have a vested interest in talking down what the viability of it might be.”

Labor seized on the hardening stand of the Nationals, with energy spokesman Mark Butler warning that internal divisions were crippling the government.

“Malcolm Turnbull must pull Barnaby Joyce into line,” he said.

“The challenge for the Prime Minister and Energy Minister Josh Frydenberg to get a clean energy target through the Coalition partyroom becomes more difficult every day.”

The motion rejecting the clean energy target was proposed by former Queensland senator and party veteran Ron Boswell, who said its embrace by government would transform the politics of the energy debate and give Mr Turnbull a better chance of winning the next federal poll.

“If the Liberal National party get this electricity issue right and “Blackout” Bill Shorten keeps pushing his high subsidies renewables line, we will win the next election,” he told The Australian. Mr Boswell and Mr Joyce helped lead the Nationals’ grassroots rebellion against the Rudd government’s proposed carbon pollution ­reduction scheme in 2009, which contributed to the ousting of Mr Turnbull as Liberal leader in December that year.

On Saturday the Nationals voted to phase out subsidies for ­renewables over five years, with former resources minister Matt Canavan telling The Australian it was “ironic” the Nationals were the party now railing against ­subsidies.

“We have to, at some point, wean ourselves off the billions of dollars that are provided to the renewable energy industry every year,” he said.

In a sign of emerging tensions between the Coalition partners, Mr Frydenberg slapped down Senator Canavan after the former cabinet minister described renewables as a “short-term sugar hit”.

“Renewables are coming down in price significantly,” Mr Frydenberg told Sky News.

“They’re not just a short-term sugar hit — they an important part of the energy mix.”