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PoliticsNow: Malcolm Turnbull shelves Paris emissions target

PoliticsNow: Dutton says he is eligible to remain in parliament, despite reports he may be in breach of the constitution.

Australian Prime Minister Malcolm Turnbull speaks during Question Time at Parliament House in Canberra. Photo: AAP
Australian Prime Minister Malcolm Turnbull speaks during Question Time at Parliament House in Canberra. Photo: AAP

Hello and welcome to PoliticsNow, The Australian’s live blog on the happenings at Parliament House in Canberra.

In the face of leadership speculation, Malcolm Turnbull has abandoned plans to legislate or regulate carbon emission targets through the National Energy Guarantee as part of a raft of major changes to his signature energy policy.

5.58pm: Dutton refutes questions over eligibility

Home Affairs Minister Peter Dutton says he has legal advice he is eligible to remain in federal parliament, despite reports he may be in breach of the constitution.

Ten News reported Mr Dutton has an interest in two child care centres in suburban Brisbane through the RHT Family Trust.

Mr Dutton’s parliamentary register of interests shows he is a beneficiary of the RHT Family Trust, along with his wife and children.

From July 2 this year child care centres receive a direct subsidy from the federal government.

This could put the minister in breach of section 44 of the constitution, which bans from parliament anyone who has “any direct or indirect pecuniary interest with the public service of the commonwealth”.

Constitutional expert Anne Twomey was quoted as saying the case would fall into the “fuzzy edges” of the law.

She points to the case of former Family First senator Bob Day who was disqualified after the High Court examined an agreement with the commonwealth he had through a family trust.

However, a spokesman for the minister told AAP on Monday: “Mr Dutton’s legal advice clearly states there is no breach of Section 44.”

AAP

Rachel Baxendale 5.40pm: ‘We’re not legislating 26pc target’

Deputy prime minister Michael McCormack was quizzed repeatedly on whether he agreed with Malcolm Turnbull that the 26 per cent target should be legislated, and initially responded that it was a “hypothetical” question, because the government did not have the numbers to legislate.

“So you don’t think it needs to be legislated?” Speers asked Mr McCormack.

“Well, no we’re not legislating it,” the DPM responded.

“And we shouldn’t?” Sky’s David Speers asked.

“Well, we can’t get the national energy guarantee through the parliament because of the pure numbers of arithmetic. That’s what governs politics. That’s what determines what policies get through and what policies don’t. It’s all about pure arithmetic,” Mr McCormack said.

Challenged over whether it was no longer National Party policy to legislate an emissions reduction target, Mr McCormack said it was not necessary.

“At the moment we’re already meeting our other obligations, making sure that we reduce emissions, and we have to play our part,” he said.

“I do agree that we have to play our part, whilst understanding that our emissions output is 1.3 per cent of global emissions, and that’s for Australia.”

Mr McCormack was asked repeatedly whether he supported the 26 per cent target.

“I support what we set at Paris. Whether or not it has to be legislated doesn’t matter, because at the moment it’s not going to be,” he said.

“If at some future point in time we have a majority in the House of Representatives and it comes up as part of that legislation, then of course yes (I would support legislating it).”

Nationals leader Michael McCormack with the Prime Minister during Question Time. Picture: Gary Ramage
Nationals leader Michael McCormack with the Prime Minister during Question Time. Picture: Gary Ramage

Rachel Baxendale 5.20pm: Paris target ‘within reach’

Deputy Prime Minister Michael McCormack has claimed Australia is on track to “more than meet” the Paris target of reducing emissions by 26 per cent of 2005 levels by 2030, but failed to provide evidence, citing “the data that is produced by those people who measure emissions”.

“We’re already more than meeting the 26 per cent that was set down as part of the Paris agreement, so more than meeting it, that’s good,” the Member for Riverina told Sky News this afternoon.

Challenged over the fact that that Australia has so far reached 24 per cent, Mr McCormack said: “Well look, I know that certainly rural and regional Australia are meeting their end of the bargain as far as making sure that we lower emissions.”

Asked how that reduction had been achieved, he said: “Well, there are farmers. Every available drop of water, they use wisely. They make sure that everything that they do is monitored, targeted, they the very best environmentalists in the world.”

Sky News anchor David Speers then quizzed the Nationals leader over the basis for his claim that Australia “will exceed” the 26 per cent target.

“Well it’s based on the figures, the data that is produced by those people who measure emissions. As far as I’m aware we’re well on track to more than matching what we need to,” Mr McCormack said.

“Twenty-four per cent is business as usual. Paris says 26 per cent. My understanding is that we will meet that 26 per cent, and at the moment we’re absolutely going to.”

Challenged again over the basis for his claim, Mr McCormack cited “paperwork that I’ve read” and “briefings from the environment department, et cetera”.

“(On) my readings of the various government papers and the newspapers and media reports that I read and see, we’re doing what we need to do as far as that 26 per cent is concerned.”

Rosie Lewis 4.12pm: Business ‘desperate for stable government’

A key business industry group has hit out at both sides of politics for creating policy uncertainty over energy and company tax cuts, and says business “desperately” wants a stable government.

“Business has every right to be alarmed at the sight of another outbreak of short-term politicking in Canberra at a time when business wants a clear signal from all political parties that they understand what the national interest requires is strong, long-term policy settings for business and that means the national energy guarantee and it means backing business tax cuts,” Australian Chamber of Commerce and Industry CEO James Pearson said.

“Stability in government and a government that is able to deliver long-term policy and an opposition which is prepared to put the national interest ahead of short-term party political interest, those are the things Australian business desperately wants.”

Andrew White 3.39pm: Liddell back in spotlight

The federal government’s sudden backflip on national energy policy has put AGL Energy’s contentious Liddell coal-fired power station back in the spotlight amid warnings from the industry that price controls and divestment powers would chill investment in replacement generation and push companies out of the market.

After staring down calls from the Prime Minister Malcolm Turnbull and Energy Minister Josh Frydenberg to sell Liddell to a competitor or extend its life past the schedule 2022 close date, AGL could face the threat of the government forcing it to divest under measures announced today.

Read the full story here.

The Liddell power station in Muswellbrook in NSW’s Hunter Valley region. Photo: AAP
The Liddell power station in Muswellbrook in NSW’s Hunter Valley region. Photo: AAP

Greg Brown 3.12pm: Shorten again attacks on power

Bill Shorten finalises his grilling by asking why Australians have to wait to get lower power prices because of the disunity of the government.

Malcolm Turnbull talks up how much the government has achieved with a slim majority of 76 MPs, including company and personal income tax cuts.

“Despite many people’s questioning whether we would be able to deliver in this parliament, we have delivered one massive reform after another,” the Prime Minister says.

Greg Brown 3.06pm: Who has the power, Shorten questions

Bill Shorten goes again on Malcolm Turnbull saying he would not debate a bill on energy policy unless it is supported by all government MPs.

“Given that the Prime Minister has a majority of one, doesn’t every member of his backbench, including the former prime minister, now have the same power over government policy as the Prime Minister himself?”

Mr Turnbull doesn’t exactly fight the Opposition Leader’s claim.

“It is self-evident that in the House of Representatives with a government with a majority of one, individual members who choose not to vote in accordance with the decisions of the majority of the party room, have the ability to prevent legislation being carried,” Mr Turnbull says.

“That is the reality, the practical reality of the situation.”

Prime Minister Malcolm Turnbull addresses MPs in Question Time. Photo: Gary Ramage
Prime Minister Malcolm Turnbull addresses MPs in Question Time. Photo: Gary Ramage

Greg Brown 3.02pm: ‘With permission of Warringah MP...?’

Bill Shorten asks if Malcolm Turnbull will only negotiate with Labor on energy policy if Tony Abbott lets him, given the Prime Minister says he will not introduce a bill in the house unless it has the support of all Coalition MPs.

The Prime Minister says he will continue to talk to his colleagues.

“His invitation to engage it bipartisanship is not very persuasive,” Mr Turnbull says.

Former Prime Minister Tony Abbott in Question Time today. Photo: Gary Ramage
Former Prime Minister Tony Abbott in Question Time today. Photo: Gary Ramage

Greg Brown 2.59pm: Focus on Coalition MPs’ energy support

Manager of Opposition Business Tony Burke homes in on Malcolm Turnbull’s insistence he will not make the NEG legislation public because it does not have the support of enough Coalition MPs to pass the lower house.

“Doesn’t that mean now that each member of the coalition back bench at the right of veto over whether or not this legislation will ever be introduced?”

The Prime Minister claims the question did not “accurately reflect the answer that I gave”.

“We seek to ensure that legislation that we introduce has the (sufficient) support of our party room to enable it to be carried on our own numbers,” he says.

Greg Brown 2.53pm: PM needs MPs on board

Bill Shorten asks if Malcolm Turnbull will only introduce legislation when the parliament agrees to support a bill MPs have not seen.

The Prime Minister says he needs his own MPs on board before the legislation enters the lower house.

“We have a majority of one in this house, we need to have all almost all of our party room to support legislation or the government to carry it on its own numbers with respect to this matter, we are not in a position at this stage,” he says.

Opposition Leader Bill Shorten and Prime Minister Malcolm Turnbull spar during Question Time. Photo: AAP
Opposition Leader Bill Shorten and Prime Minister Malcolm Turnbull spar during Question Time. Photo: AAP

Greg Brown 2.49pm: Will legislation be tabled?

Bill Shorten asks Malcolm Turnbull if he can table the legislation for the national energy guarantee.

The Prime Minister says he will put it to the House of Representatives when it has the numbers to carry the parliament.

Greg Brown 2.47pm: Dutton cops a Dixer

Labor MPs have plenty to say as Home Affairs Minister Peter Dutton gets a Dixer.

Mr Dutton talks up the government’s border protection policies. But Tony Abbott didn’t show much interest, getting up during Mr Dutton’s address to get a glass of water.

Funnily enough, Mr Turnbull didn’t show much interest either.

“Labor is once again making policy on the run when it comes to border policy,” Mr Dutton says.

“There is no question that the Labor Party will continue to make the mistakes if they were elected again.”

Greg Brown 2.42pm: Labor digs over leadership speculation

Labor MP Ged Kearney asks a question to the “current Prime Minister”, in a stab at the leadership speculation running through the government.

“Isn’t it the case that Australians are paying the price for the circus that this government and its policies have become?”

Energy Minister Josh Frydenberg takes the question. He leaps on comments this month from Labor MP Meryl Swanson, who told The Australian she would support the construction of a new low emissions coal-fired power station.

“Come on over,” he says.

“The Leader of the Opposition has sold out the workers he pretends to represent. He has done a deal with the Greens to protect his left-wing.

“He is not supporting the workers, the blue-collar workers, the jobs of Australians that depend on cost-effective energy policies, only the Coalition will deliver lower power prices.”

Greg Brown 2.32pm: Energy policy improved, Turnbull says

Opposition energy spokesman Mark Butler asks Malcolm Turnbull about the many different energy policies he has championed.

“Aren’t Australians paying the price of five years of this government focusing on itself in several policies to bring down power prices for Australian households?”

The Prime Minister says the policy was “improved” after consultation with his MPs.

“The policy that we took to the party room last week has been improved following consultation,” Turnbull says.

“We consult with our colleagues, we improve it to ensure that there is an effective a mechanism that makes it absolutely clear that any change to emissions standards cannot put up prices.

“That is a very important safeguard.”

Greg Brown 2.27pm: ‘What does Turnbull stand for?’

Bill Shorten asks Malcolm Turnbull whether he will drop big business tax cuts.

He notes the Prime Minister has “passionately” advocated three things in public life: the republic; action on climate change; and big business tax cuts.

“Will he now rule out abandoning his centrepiece big business tax cut or is it the case that whenever it comes to a choice between his principles and his job, this Prime Minister stands for nothing at all?”

Mr Turnbull does not argue the case for big business tax cuts. But he says the government is taking action on climate change, leading to a roar of laughter from Labor MPs.

“We are taking real action on climate change,” he says, pointing to the Snowy 2.0 project.

“We got it started, we have got it under way. Labor was able to deliver one policy after another that reduced the reliability of electricity networks and increase their cost.”

Rosie Lewis 2.22pm: Hanson won’t support company tax cuts

One Nation leader Pauline Hanson has declared she will not support the government’s remaining company tax cuts ahead of a vote as early as today, insisting Australia “can’t afford” a lower rate for big business.

Senator Hanson revealed she had asked the government to place a royalty on Commonwealth-owned gas and for the banking royal commission to be paid for by the banks in exchange for her support for the unlegislated company tax cuts, which appear doomed in the Senate.

“In my talks with the government I have been asking for tax reform in the area of natural gas and other hydro-carbons because with the exception of one joint venture project we are currently giving away our gas for free,” Senator Hanson said.

“My negotiations with the government also has been that the banking royal commission must be paid for by the banks and there must be a compensation fund paid to people who have lost their properties and the devastation they have faced because of the banks.

“I will not support this and I’m getting criticised for it … (But) A lot more people are now saying ‘no’ they don’t want these corporate tax cuts.”

The government needs the support of eight of the 10 Senate crossbenchers to lower the tax rate to 25 per cent for all businesses but only has the support of four.

One Nation’s support is critical in order to pass the tax cuts for businesses with an annual turnover of more than $50 million.

A vote on the remaining company tax cuts could take place in the Senate tonight. If they are rejected as expected, the government may look to speed up the rollout of existing company tax cuts for businesses turning over up to $50m.

Greg Brown 2.12pm: ‘All politics, no policy’

Bill Shorten asks Malcolm Turnbull when he will provide Labor with “today’s version” of the government’s energy policy.

“And will the Prime Minister work with Labor on a constructive bipartisan basis to reduce pollution, increase renewables, and deliver lower power prices for Australian families?”

Coalition MPs laughed at that question.

The Prime Minister says he could not believe the Opposition Leader got through the question without laughing.

“I have never heard a less convincing advocate for bipartisanship than the Leader of the Opposition; he is all politics and no policy,” Mr Turnbull says.

“The simple fact is, what we have got our measures that will bring down electricity prices by hundreds of dollars.”

He also attacks Labor for its 50 per cent renewables target.

“All Labor has is a ragbag of measures that have been proved to fail, unsustainable renewable targets, unsustainable emissions abatement targets,” Mr Turnbull says.

“All of that has demonstrated to put up higher prices and undermine our competitiveness.”

Greg Brown 2.04pm: Question Time starts with a backflip

Bill Shorten starts Question Time on Malcolm Turnbull’s energy backflip.

“Can the Prime Minister confirm he will not be legislating his own energy policy because he cannot confirm the support of his own government in this Parliament?”

Mr Turnbull pretty much confirms it, saying the government only introduces legislation that can pass the House of Representatives.

“We are not able to be assured of that at this stage, but ...what we have demonstrated is a commitment to bring electricity prices down,” he says.

Rachel Baxendale 1.57pm: Nationals ‘one on energy’

Deputy Prime Minister Michael McCormack maintained his leadership was not on the line following Malcolm Turnbull’s capitulation on the NEG.

In a press conference alongside all his Nationals cabinet colleagues, including his deputy Bridget McKenzie, Resources Minister Matt Canavan, Agriculture Minister David Littleproud and Indigenous Affairs Minister Nigel Scullions, Mr McCormack said the Nationals were “one when it comes to prices” on energy.

“The NEG is still part of government policy, it’s just that we couldn’t get the numbers to have it supported through the House of Representatives, and I certainly have the support of my party room,” Mr McCormack said.

Mr McCormack welcomed the adoption of ACCC Recommendation Four which he said would see support for coal-fired power stations.

“I appreciate that there’s coal, there’s pumped hydro, there’s gas, there’s all those things, but for us, for the Nationals, coal is very much part of our thinking, part of our strategy, part of our support, and I’m delighted that the ACCC recommendations are going to be acted upon quickly,” Mr McCormack said.

He also welcomed the “big stick approach” which will see energy companies forced to divest if they are found to be acting as cartels or distorting the market.

“Price is something that we have always fought for. As the National Party we’re delighted that the Prime Minister Malcolm Turnbull has listened, has acted, has continued to support what the National Party has championed for a long, long time,” Mr McCormack said.

Asked whether his backbench colleague was correct that the emissions target would not be legislated, or whether Malcolm Turnbull was right that it would be legislated with Labor’s support, Mr McCormack said it was likely a 45 per cent target would be legislated under Labor, which would “drive energy prices through the roof”.

“Make no mistake: Labor has a policy to drive power prices up” he said.

“The Nationals, in coalition with the Liberals, our laser-like focus has been on power prices down.”

Asked whether he had failed to stand up to Malcolm Turnbull as Nationals leader, Mr McCormack said he and the PM had a “very good working relationship”.

“The Prime Minister has my support. That will continue,” he said.

“The Prime Minister is doing a good job. We’ve got a good story to tell, we’ve got a good message to sell on jobs, on power prices, on what we’ve done in this energy space.

“We’ve got a very, very good story. We’ve got there together: The Prime Minister, the Deputy Prime Minister, the Liberal Party, the National Party. We’ve got there together. That’s what a strong, united Coalition does and that’s what we are.”

Deputy Nationals leader Bridget McKenzie said her party wasn’t afraid of the “c word”: “Coal, coal, coal.”

Greg Brown 1.50pm: Stop the sniping, MP says

Liberal MP Trent Zimmerman has urged his colleagues to stop undermining Malcolm Turnbull.

“Australians are not immune from this type of instability and my message really to my colleagues is to recognise that all Australians want us to focus on them and their concerns, not the internal belly-gazing,” Mr Zimmerman told Sky News Australia.

1.30pm: I have support, McCormack says

Deputy Prime Minister Michael McCormack has declared he is supported by the Nationals party room, staring down leadership rumblings.

Mr McCormack dismissed reports his job was under pressure, as Prime Minister Malcolm Turnbull fought leadership tensions fromconservative Liberals.

“I certainly have the support of my party room,” the Nationals leader told reporters in Canberra.

Dennis Shanahan 1.22pm: ‘Turnbull has effectively killed NEG’

COMMENT: Malcolm Turnbull’s explanation for not legislating or even regulating the emissions target for the national energy guarantee is neither logical nor politically tenable.

The Prime Minister has effectively killed the NEG and left responsibility to the States.

His excuse for this full retreat on his own commitment to enshrining emissions targets was a lack of “bipartisanship” — that is, Labor supported a 45 per cent emissions reduction target.

This is a charade that doesn’t survive a moment’s scrutiny.

Read the full story here.

1.04pm: Joyce stands firm with Turnbull

Barnaby Joyce has welcomed the government’s changes on energy policy and voiced his support for Malcolm Turnbull to remain Prime Minister.

Mr Joyce said it was a “great move” to dump the emissions reduction target and give new powers to the competition watchdog.

“I think dealing with power prices is really what is needed, we need to fight on lower power prices,” Mr Joyce told Sky News Australia.

“We have now taken a clear step towards power prices. I support the Prime Minister, what we have seen here is a Prime Minister who has clearly listened.”

Mr Joyce, who previously called for Mr Turnbull to reconsider his position by Christmas, said voters would not like it if Liberal MPs dumped the Prime Minister.

Peter Dutton is doing a very good job, Malcolm Turnbull is doing a good job, I think people now want this to settle down, and we have had the fight, we have got the outcome and now we move on,” Mr Joyce said.

“I don’t think changing prime ministers looks good, I think that is a remit of the person themselves, I thought the Kevin Rudd, Julia Gillard thing, people didn’t like it, and to be honest when the Malcolm Turnbull and Tony Abbott issue happened people didn’t like that.

“People are not going to like it if you try and repeat.”

Greg Brown 1pm: ‘Rebel’ Christensen takes the credit

Liberal National MP George Christensen has taken credit for Malcolm Turnbull’s back down on an emissions reduction target.

“We have a new energy policy thanks to a band of ‘Liberal National rebels’ who stood firm and fought for common sense,” Mr Christensen in a statement.

“What has been announced this morning puts price reductions first and foremost, so pensioners struggling to pay their power bills come before the feel good Paris Agreement.”

Mr Christensen said the policy would pave the way for new coal-fired power stations.

“This is a victory for common sense, in that we take advantage of the abundant coal reserves this country still has, and we use that abundance to deal with this issue of power prices once and for all,” he said.

George Christensen in Question Time last week. Photo: Kym Smith
George Christensen in Question Time last week. Photo: Kym Smith

Greg Brown 12.38pm: Turnbull a ‘white flag PM’

Bill Shorten says he does not care which Liberal leader he comes up against at the next election, labelling Malcolm Turnbull a “white flag Prime Minister” for dumping emissions reduction targets.

The Opposition Leader said changes to the National Energy Guarantee announced today were about “appeasing Turnbull’s enemies in the Liberal Party so he can keep his job”.

He reserved support for any of the government’s proposals today until Labor was able to study the details.

Mr Turnbull has demonstrated that he is not the leader this nation needs. Real leadership is about fighting for the principles you believe in. Real leadership is about not always giving in to your enemies every time they disagree with you. Real leadership should be about putting lower pollution and lower prices at the forefront of energy policy,” Mr Shorten said.

Opposition Leader Bill Shorten. Photo: Rohan Thomson
Opposition Leader Bill Shorten. Photo: Rohan Thomson

“The problem is with Mr Turnbull, every time people who don’t like him and his party disagree with them, he gives up.

“From day one of his prime ministership we have seen the same pattern. Mr Turnbull has never seen a fight that he won’t give up his principles in order to keep his job.”

Opposition energy spokesman Mark Butler denied Mr Turnbull’s claim that Labor had refused to support legislated targets, saying the government had not provided details on the policy.

“We had a briefing scheduled for last Thursday, that briefing was cancelled by the government and after a number of times where we have tried to have that briefing rescheduled, we have heard nothing from the government at all,” Mr Butler said.

Rosie Lewis 12.27pm: Leadership change ‘bloody insane’

Liberal marginal seat holder Warren Entsch has warned a change in leader would be “bloody insane” this close to a federal election, as he urged Malcolm Turnbull to “stare down” rebel MPs.

Mr Entsch, who holds the far north Queensland electorate of Leichhardt on 4 per cent, said he would not be “spooked” by Coalition divisions and leadership speculation — which he labelled “bull****”.

“I can’t see any sense in change. This time out from an election it would be bloody insane,” Mr Entsch told The Australian.

He said he was “confused” by the Coalition’s position on the national energy guarantee and had been prepared to accept the policy as it was put to the partyroom last week.

Federal Member for Leichhardt Warren Entsch has announced he will run in the next Federal election. PHOTO: Peter Martinelli
Federal Member for Leichhardt Warren Entsch has announced he will run in the next Federal election. PHOTO: Peter Martinelli

Malcolm’s trying to satisfy everybody’s demands. He’s trying to appease Tony (Abbott) and his mates and in doing so he’s walking away from what we agreed to in the partyroom. What was the thanks he got from Tony for trying to meet his demands?” Mr Entsch said.

“It’s no way to run a government, making absolute commitments on Tuesday and breaking them on Friday. I don’t disagree with Tony Abbott on that but I tell you what, how ungracious is it? Here’s Malcolm trying to be all things to all people, this is the thanks he gets for it. Maybe it’s time to stare him down.”

Member for Leichhardt Warren Entsch with then-Prime Minister Tony Abbott at a press conference in 2015. Photo: Marc McCormack/File
Member for Leichhardt Warren Entsch with then-Prime Minister Tony Abbott at a press conference in 2015. Photo: Marc McCormack/File

Mr Entsch wanted to remind Mr Abbott of his pledge in September 2015, when he was rolled by the Prime Minister for the top job, that there would be “no wrecking, no undermining and no sniping” as he moved to the backbench.

“These are good reasons why the former prime minister needs to pull his head in,” Mr Entsch said.

“I also need to remind him even with an 11 per cent margin he may not be safe.”

Mr Entsch said he had not received a phone call from Liberal National Party president Gary Spence urging him to advocate for a toppling of Mr Turnbull, though that was “no surprise”.

12.10pm: Turnbull, Morrison, Frydenberg press conference

If you’ve got a spare half-hour over lunch, you can watch Malcolm Turnbull’s full press conference on energy policy changes below.

Rachel Baxendale 11.35am: Turnbull ‘not under threat’

WA Liberal senator Linda Reynolds has urged calm, saying Malcolm Turnbull’s leadership is “absolutely not” under threat.

“We’ve certainly had a lot of robust debate on a very important national policy issue, which I think is actually right,” Senator Reynolds told Sky News.

“I’ve got a bit of a different opinion on this issue. I think the discussion, the debate that we’ve had in the partyroom, and also more publicly, is actually a very good thing, because it is an important issue for Australians, and I don’t for a second think that there is a leadership challenge on.

“I’ve seen the speculation in the media, but the Prime Minister’s just made an announcement, we’ll discuss it in the partyroom tomorrow, and I was very happy to support the package in the partyroom last week, but I know a number of my colleagues were not, as is their right, so we’ll discuss it tomorrow in the partyroom tomorrow, and I think once we’ve done that, we can then move on.”

Greg Brown 11.07am: Turnbull ‘retains Dutton’s support’

Malcolm Turnbull says he retains the “absolute support” of Peter Dutton as he shelved a central element of his signature energy policy, saying the government will not legislate or regulate the 26 per cent Paris emissions target.

The Prime Minister today announced new measures to lower power prices but said the future of the national energy guarantee was now in the hands of the states.

Mr Turnbull said Mr Dutton was “part of the team” as he played down the prospects of a challenge.

Peter Dutton was at our leadership group meeting this morning and he was at the cabinet last night, he’s a member of our team, he’s given me his absolute support,” Mr Turnbull said.

Prime Minister Malcolm Turnbull speaks to the media this morning. Photo: AAP
Prime Minister Malcolm Turnbull speaks to the media this morning. Photo: AAP

He said the emission reduction target has been shelved because it would not have passed the House of Representatives in a back down to conservatives such as Tony Abbott who did not want the Paris targets regulated or legislated.

“It is clear that in the absence of bipartisan support, the legislation to move forward with the emissions component of the national energy guarantee will not be able to pass the House of Representatives,” Mr Turnbull said.

“In politics you have to focus on what you can deliver and that’s what we’ve done and we’ll continue to do.”

Home Affairs Minister Peter Dutton at the Opening of the Australian Cyber Security Centre in Canberra last week. Photo: Kym Smith
Home Affairs Minister Peter Dutton at the Opening of the Australian Cyber Security Centre in Canberra last week. Photo: Kym Smith

He said it was still the government’s policy to legislate the target but he would not try and pass legislation that would be blocked in the lower house.

“Where and when we believe there would be sufficient support in the House of Representatives and obviously in our party room to progress this component of the scheme will bring it forward once again,” Mr Turnbull said.

“The national energy guarantee remains the government’s policy, but, as John Howard said, politics is governed by the iron laws of arithmetic and in a House of Representatives with a one seat majority, even with strong support in the party room, if a small number of people are not prepared to vote with the government on a measure then it won’t get passed,” he said.

Rosie Lewis 11.01am: Senate debates gas bill

Over in the red chamber, senators are debating Peter Georgiou’s Offshore Petroleum and Greenhouse Gas Storage Amendment (Reporting of Gas Reserves) Bill 2018. The legislation would force companies that hold retention leases of petroleum resources to deliver a “taxation transparency report” to the regulator.

“The taxation transparency report will tell the regulator what resources are there and how much are they worth. It will also tell the regulator what payments are being made and to whom,” Senator Georgiou said.

“It’s not just retention lease holders who will need to provide a taxation transparency report. The bill keeps the information coming, with petroleum production licence holders also subject to the same obligations.

“It’s about ensuring we get a clear picture of the sector, and that we keep that picture clear.”

Senator Peter Georgiou. Photo: Kym Smith/File
Senator Peter Georgiou. Photo: Kym Smith/File

Greg Brown 10.45am: Turnbull dumps Paris legislation plan

Malcolm Turnbull has dumped a central element of his signature energy policy, saying the government will not legislate or regulate the 26 per cent Paris emissions target.

The Prime Minister today announced new measures to lower power prices but said the future of the national energy guarantee was now in the hands of the states.

‘You have to focus on what you can deliver’ ... Malcolm Turnbull at Parliament House today. Photo: AAP
‘You have to focus on what you can deliver’ ... Malcolm Turnbull at Parliament House today. Photo: AAP

Mr Turnbull said the emission reduction target would not have passed the House of Representatives in a backdown to conservatives such as Tony Abbott who did not want the Paris targets regulated or legislated.

“It is clear that in the absence of bipartisan support, the legislation to move forward with the emissions component of the national energy guarantee will not be able to pass the House of Representatives,” Mr Turnbull said.

“In politics you have to focus on what you can deliver and that’s what we’ve done and we’ll continue to do.”

He said it was still the government’s policy to legislate the target but he would not try and pass legislation that would be blocked in the lower house.

Rosie Lewis 10.40am: Faruqi takes Senate seat

NSW Greens senator Lee Rhiannon has retired from federal politics and was today officially replaced by Mehreen Faruqi.

Senator Faruqi was a NSW state MP but she beat Ms Rhiannon in a preselection battle for the No.1 NSW Senate spot, catapulting her into the upper house.

10.30am: Revised Turnbull Government energy plan

* Government won’t bring in legislation for the National Energy Guarantee to parliament this week, because it lacks numbers to pass it. This means no immediate actionon cutting emissions.

* “Default market offer” to give consumers a clear picture of how much they should be paying for their electricity. Savingfor households could range between $183 and $416 a year. Average small business to save $561 to $1457.

* ACCC to get new powersto step in where there has been an abuse or misuse of market power by big electricity companies, including possible break-upof companies in worst cases.

* Government will underwrite new power generation.

* Talks to continue with the states on the reliability guarantee, which needs to be in place by July 2019.

10.15am: Turnbull outlines NEG changes

Malcolm Turnbull has outlined a raft of major changes to his energy policies as he fends off a growing internal revolt.

One crucial change will be abandoning plans to legislate carbon emission targets through the National Energy Guarantee — which have proved a political roadblock — with the prime minister opting instead to set the figure through regulation.

“In politics you have to focus on what you can deliver and that’s what we’ve done and we’ll continue to do,” Mr Turnbull told reporters at Parliament House in Canberra.

AAP

Greg Brown 9.55am: Deputy PM has support

With the focus on the leadership of the Liberal Party, Nationals MP Darren Chester has denied reports Deputy Prime Minister Michael McCormack has lost the support of his party.

“It is an unnamed source claiming something,” he said.

“I went to the party room last week and Michael had great support.”

Greg Brown 9.20am: Molan switch on NEG

Liberal senator Jim Molan says he will reconsider his support for the national energy guarantee because of changes Malcolm Turnbull announced to the media.

Senator Molan said he had not been briefed on the changes but they did not appear to ease his concerns about the policy.

He will spend today considering the policy and announce his position before the joint party room meeting tomorrow.

“I will spend today assessing my personal position on energy policy, I expressed last week support for NEG plus, plus, plus and plus in the party room but I also expressed my concerns,” Senator Molan said in a Facebook post.

“It would appear from media reports that the policy has now changed significantly, that it is a very fluid situation.

“If the media reports are to be trusted, the changes that are being mooted don’t go to the concerns that I have, and the concerns that I still have are whether our energy policy is necessary, whether it will achieve any effect on climate, and whether the cost will be worth it.

“So I will spend the rest of the day assessing where we stand and what my position is for it, I will let our leadership do their thing and come back to us and tell us what is going on, I will announce it before the party room tomorrow morning.”

Greg Brown 9.15am: ‘It’s not about him’, Abbott says

Tony Abbott says his crusade against the government’s energy policy was “not about personalities” or the PM’s leadership, but he declined to pledge his support to Malcolm Turnbull.

“It is not about personalities, it is not about him, it is not about me, it is about what is going to give Australians the best possible energy system that delivers affordable, reliable power,” the former prime minister said this morning.

“What we have got to get is a contest, the only way we can win the next election is to have a contest over policy, not over personalities, we have got to be the party that is on the side of getting prices down and let Labor that is the party all about getting emissions down.”

He declined to respond to a question about whether the Prime Minister should step aside if he would not adopt Mr Abbott’s recommendation to leave the Paris Agreement.

Mr Abbott reportedly told a Liberal Students event in Queensland on Saturday that he looked forward to “a Dutton government”, however he declined to speculate on Peter Dutton’s leadership ambitions when quizzed by reporters.

Greg Brown 8.35am: Unrest ‘damaging’

Conservative Liberal MP Craig Kelly says he has not been approached about supporting a push to back Peter Dutton as new party leader.

“There is no challenge at the moment … my support is with the Prime Minister,” Mr Kelly said in Canberra this morning.

“We are working through this very difficult issue of electricity, and let’s give the Prime Minister some credit for this: he is listening and making changes and to me that is a sign of good leadership.”

Mr Kelly admitted the internal unrest about energy policy was damaging for the government.

“Obviously when you have any division it is going to hurt you in the polls but ultimately there is not an election next week,” Mr Kelly said.

“The election is not until next May.”

Mr Kelly said he did not support the emissions reduction target being enshrined in either legislation or regulation, but he believed the former was better.

“My real concern with (regulating the target) is that you are giving a blank cheque to a future Labor government to increase those targets,” Mr Kelly said.

Greg Brown 8.15am: No challenge: Pyne

Leader of the House Christopher Pyne says the cabinet and Peter Dutton are “100 per cent behind” Malcolm Turnbull, despite admitting last night there was discontent with some MPs about Malcolm Turnbull’s leadership.

“I don’t believe there will be a challenge to Malcolm Turnbull’s leadership, I believe the cabinet is 100 per cent behind Malcolm Turnbull, including Peter Dutton,” Mr Pyne said in Canberra this morning.

“(Mr Dutton) is a very valued colleague, he is a good friend, he is very competent, I don’t believe he is doing anything to change the leadership of the party.”

Mr Pyne said he was merely stating the obvious when he last night said not all in the Liberal Party supported the Prime Minister, arguing the comments were referencing Tony Abbott.

Tony Abbott is not making any secret about his unhappiness, so it is a statement of the obvious it is not a revelation to anybody in Australia that Tony Abbott is unhappy with the leadership and with the direction of some of our policies,” Mr Pyne said.

“To Tony Abbott’s credit, at least he is not anonymously briefing the press, his is quite upfront about it.”

Mr Pyne said Mr Dutton was at last night’s cabinet meeting and was only late because his flight out of Queensland was cancelled.

He admitted the leadership speculation was damaging the government after a Fairfax/Ipsos poll published today showed the government was trailing Labor by 55 per cent to 45 per cent on a two party preferred basis.

“Obviously it is damaging, quite clearly disunity is damaging,” he said.

“One of the outcomes from disunity is poor polling figures

“The people who create this kind of leadership speculation, and of course this is something we have put up with for 10 or 11 years in Canberra, they always want to try and drive down the numbers in the polls because then they say: ‘see we told you so and therefore we need to change the leadership’.

Greg Brown 7.30am: ‘Pull your heads in’

Education Minister Simon Birmingham urged the “handful of individuals who have caused trouble” to pull their heads in and get behind the government as he denies Malcolm Turnbull has lost the support of the Liberal party room.

Senator Birmingham, a moderate and key ally of the Prime Minister, said there was not a leadership challenge in the works from Peter Dutton, arguing the dissent against Mr Turnbull’s leadership was small.

“Peter made a very clear public statement in support of the Prime Minister and the policies of the government, I take that at its word,” Senator Birmingham told Sky News.

“There is overwhelming support, as we saw last week, for the energy policies of the government, overwhelming support for the Prime Minister and overwhelming support from the team to get on with the job, which is certainly what the Prime Minister and cabinet are doing.

“And I would urge everybody else, the handful of individuals who have caused trouble, to think about the consequences of continuing to cause that trouble and to instead recognise that this is a government that has achieved a great deal.”

Senator Birmingham said “literally only a handful of individuals” were against the national energy guarantee in the Coalition party room last week and they “decided to derail those policies”.

“If we are actually going to win the next election we have got to put all that behind us, work as a team and highlight what is an incredibly strong track record of this government,” he said.

Greg Brown 7am: What’s making news

The leadership crisis engulfing Malcolm Turnbull has deepened, with cabinet ministers privately accusing the Prime Minister of cobbling together his plan to cap retail power prices in a last-minute bid to save his leadership.

Malcolm Turnbull’s energy policy reset risks fuelling a gathering backbench revolt as Victorian MPs Tim Wilson and James Paterson signal their strong opposition to last-minute changes to the ­national energy guarantee.

A Fairfax-Ipsos poll today shows the Coalition has suffered a slump in its primary vote from 39 to 33 per cent over the past month. The Coalition trailed Labor by 45 to 55 per cent in two-party preferred terms.

NSW state Liberal MPs have been told to “distance themselves” from the Turnbull government amid fears the chaos of the federal party will contaminate the state election campaign in March.

Peter Dutton could improve his chances of holding his marginal seat of Dickson if he successfully challenges Malcolm Turnbull, a political expert says

The Victorian Coalition has savaged Simon Birmingham ’s schools funding policy as an “omnishambles”, accusing the Turnbull government of being more committed to flattering David Gonski’s ego than finding an equitable education policy.

The Finance Minister, Mathias Cormann, maintained yesterday the government was “fully committed” to its company tax cuts as big business issues an 11th-hour plea for the Senate to back reform, warning that a two-tier corporate rate would shatter investment and act as a “slug on the Australian spirit of entrepreneurialism”.

Pauline Hanson has accused Clive Palmerof trying to “buy” candidates for his start-up party, intensifying the feud between the two political populists.

Simon Benson writes that Malcolm Turnbull is in full capitulation mode in the face of a possible leadership challenge.

Greg Brown
Greg BrownCanberra Bureau chief

Greg Brown is the Canberra Bureau chief. He previously spent five years covering federal politics for The Australian where he built a reputation as a newsbreaker consistently setting the national agenda.

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