Promise new coal plant at election, Barnaby Joyce urges Morrison

The PM has slapped down Barnaby Joyce’s call for a government-subsidised coal-fired power station in central Queensland.

Barnaby Joyce during a press conference at Parliament House in Canberra yesterday. Picture: Kym Smith

Scott Morrison has slapped down Barnaby Joyce’s call for a government-subsidised coal-fired power station in central Queensland and declared Michael McCormack would not be rolled as Nationals leader.

The Prime Minister said claims Nationals MPs could bring on a spill against the Deputy Prime Minister on budget week were “nonsense”.

“We have a fantastic leader of the National Party in Michael McCormack and there will be no change to that,” Mr Morrison said.

Mr Morrison poured cold water on Mr Joyce’s demand that the government go to the election vowing to either underwrite or directly subsidise a new coal-fired power station in Queensland.

He instead talked up his recent announcements on ticking off Snowy 2.0 and pumped hydro investments in Tasmania.

“For such a (coal) project to proceed, it would require the approval of a Queensland state government. The Queensland state government has no intention of approving any such projects,” Mr Morrison said.

“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.

“I’m focused on things that we can do to keep the pressure down on power prices and ensure that we deliver the reliable and sustainable and renewable energy for the future and that’s what our government is putting forward.”

Mr Joyce wants more taxpayer funds to be invested in coal, putting him at odds with his party leader Michael McCormack, who yesterday said the government should only support a coal station that “stacks up” financially.

Mr Joyce told The Australian that Mr Morrison should promise a new coal-fired power station would be built if the Coalition retained power, with the government to either underwrite the project or support it through direct subsidies.

The call puts further pressure on Energy Minister Angus Taylor to reveal a list of energy projects that would be underwritten by the government before the election, as demanded by a group of six Queensland Nationals MPs last week.

Mr Joyce, the member for the NSW seat of New England, said the government injected capital into the $4.5 billion Snowy 2.0 project and should be prepared to do the same with a Queensland coal station.

“I support a coal-fired power station in central Queensland because the people of central Queensland have a vastly different view of the world to the people of Melbourne,” Mr Joyce said.

“I am not a fanatic for any form of power except the one that is proven cheapest. At this point of time, we live in this mythology that (renewables) are going to get cheaper. Well, the absolute test of that is the consumer, and their power bills are not going down.”

Mr Joyce’s comments come after he declared last week he would stand against Michael McCormack if a leadership spill were brought on by other MPs before the election.

The Australian has been told there is a “zero” chance a spill will happen before the election, but moves against Mr McCormack are likely if the Coalition loses.

Mr McCormack yesterday said he was “not against coal-fired power stations” as he declared the Coalition supported “affordable power”.

“If the future means building another coal-fired power station, or building one indeed in North Queensland, then we’ll certainly look at it if the business case stacks up,” Mr McCormack said.

A group of six Queensland Nationals MPs wrote to Mr ­McCormack last week and ­demanded that the government put shelved divestiture power laws to a vote in parliament in budget week and fast-track the underwriting of a dispatchable project.

One of the signatories to the letter, Keith Pitt, yesterday said he wanted Mr Taylor to unveil government support for a coal-fired power station before the election.

“I would be very surprised if there wasn’t any baseload coal because the reality is (that) even under Labor’s 45 per cent target, there still has to be 50 per cent from somewhere else,” Mr Pitt said.

“Whether it is an extension, whether it is add-ons to existing, whether it is new, I don’t care, as long as it drives down the price and ensures reliability.”

The push for coal highlights division in Coalition ranks on fighting the election on energy policy.

Mr Morrison shifted to pro-­renewables rhetoric this month amid fears a lack of climate change policy would cost the government seats in Sydney and Melbourne.

A NSW Liberal powerbroker said government backing of new coal-fired power stations would make it harder for the Liberals to hold Warringah and win back Wentworth.

“Barnaby is trying to stir things up to provide validation for his leadership following the election,” the Liberal figure said.

“We can have a referendum on coal-fired power stations if we like and the referendum result will be precisely what we don’t want.”

The blue ribbon Melbourne seats of Higgins and Kooyong are also being targeted by the Greens on the issue of climate change.

And former Liberal now independent MP Julia Banks is using the issue to challenge Health Minister Greg Hunt in the seat of Flinders.

Mr Taylor said the government was “carefully considering” all 66 proposals for dispatchable energy projects that would be underwritten by taxpayers.

However, he has not committed to making a decision ahead of the federal ­election.

“Government is carefully considering all proposals. These are big projects and we’ve got to get this right,” Mr Taylor said.

“We want projects that reduce prices and improve reliability, and are consistent with our inter­national obligations.”