Bridget McKenzie expects coal to make shortlist of projects government underwrites

Deputy Nationals leader Bridget McKenzie says she expects a coal-fired power station to make the shortlist of projects the government underwrites.

Deputy Nationals Leader Bridget McKenzie says government would be prepared to underwrite a new coal-fired power station if it “stacks up”. Picture: Kym Smith

Deputy Nationals leader Bridget McKenzie says she expects Energy Minister Angus Taylor to include a coal-fired power station on the shortlist of projects the government could underwrite.

The Sports Minister said the government would be prepared to underwrite a new coal-fired power station if it “stacks up”.

Senator McKenzie said she expected Mr Taylor to shortlist a range of projects that could get government backing, including coal power.

“It is important to ensure increased competition in reliable energy generation across the Australian grid and we know that is going to come from a range of sources,” Senator McKenzie said.

“We need to be careful and methodical about how we assess those projects but I am confident there will be a range of energy sources, including coal, that will make the successful shortlist.

“Our government’s policy position is to underwrite reliable generation where it stacks up.”

Coal revolt ‘put to rest’: PM

Scott Morrison is claiming an internal coal rebellion within his government has been “put to rest” after Barnaby Joyce declared he should not have referred to himself as the “elected deputy prime minister”.

The Prime Minister batted back questions about a push for taxpayer-backed coal by Mr Joyce and Queensland Nationals by pointing to the former deputy prime minister’s concession he made “missteps” this week.

“Barnaby has put these matters to rest this morning. He is a passionate fellow there is no doubt about that and I think he settled those issues down this morning with the comments he has made about his missteps earlier in the week,” Mr Morrison said.

While Mr Joyce expressed regret for undermining Mr McCormack this week, he also declared he was still pushing for a government-subsidised coal plant in central Queensland.

“That is policy of the National Party and I know minister Matthew Canavan and minister Angus Taylor are fighting as hard as they can in cabinet and I hope we get some sort of resolution and some sort of way forward,” Mr Joyce said this morning.

Mr Morrison said the government had a technology “agnostic” approach to energy but stopped short of mentioning new coal stations as a potential power source.

“Our plans are about supporting the development of commercially viable and feasible baseload power all around the country. That can be gas, that can be hydrogen, it can be any number of sources of energy. It can be hydro, as we have said, and it can be other traditional sources,” Mr Morrison said.

“What we need is reliable sustainable power for the future to drive our industries.

“We are technology and resource agnostic when it comes to that. We want to see those projects come forward. We have already got Snowy Hydro 2.0, the Marinus link, which I announced a little while ago, will be very important for Victoria.”

Canavan broke ranks

Cabinet minister Matt Canavan, left, had backed, right, Barnaby Joyce’s call for a government-supported coal-fired power station in central Queensland.

Earlier, Cabinet minister Matt Canavan had broken ranks with Mr Morrison and backed Mr Joyce’s call for a government-supported coal-fired power station in central Queensland.

The Resources Minister said Mr Joyce and six Queensland Nationals were “simply restating long-term (government) policy” to support investment in power generation sources.

“There is a clear need for additional power in north Queensland, multiple studies have shown that, and those studies come back always saying that a HELE or a new coal-fired power station would make a lot of sense in north Queensland,” Senator Canavan told ABC radio.

Mr Joyce called for direct taxpayer subsidies in a Queensland coal-fired power station, while other Nationals MPs want the Prime Minister to announce before the election the government will underwrite a coal plant.

Mr Morrison slapped down Mr Joyce’s demand, declaring a coal project would never be approved by the Queensland government.

“So I tend to work in the area of the practical. The things that actually can happen. And what actually can happen is the investments that we are making in renewable projects and reliable projects,” Mr Morrison said on Monday.

Senator Canavan, a member of the Queensland Nationals, denied his call was at odds with Mr Morrison.

“The Prime Minister was outlining the challenges of doing this in Queensland, and that is true. One of the challenges is you have got a Queensland Labor government who has deserted north Queensland and the issues they have got up there,” Senator Canavan said.

“That is a challenge but I am up for the challenge.”