Rebel Nationals ignite energy war over ‘big stick’ laws, power prices

Six “energy rebel” Nationals MPs are demanding Scott Morrison’s “big stick” laws be resurrected immediately.

Nationals frontbencher Michelle Landry — an outspoken advocate for a new cleaner coal plant — is among the six who signed the letter of demand. Picture: Lukas Coch/AAP

Six Queensland Nationals MPs have reignited the Coalition’s civil war on energy policy, demanding that Scott Morrison put his shelved “big stick” laws to a vote in budget week and fast-track a decis­ion on the underwriting of a new cleaner coal plant.

The energy rebels have signed a letter to Deputy Prime Minister Michael McCormack, challenging his authority with written demands calling for “immediate” ­action to address “unsustainable Queensland electricity costs”, after he failed to avert the deferral of the legislation to bring energy companies to heel.

In the letter, obtained by The Australian, the MPs called on the “Coalition executive” to revive the legislation that would allow the government to seek orders divesting an energy company of its power generation assets.

The MPs have also called on the government to underwrite a new power generation project in regional Queensland before the May election is called, raising the stakes in the push by conser­vatives for contracts to be signed backing a new cleaner coal plant.

The letter does not identify a preferred power generation source but Queensland Nationals said yesterday they would support “whatever is the cheapest option”, although some indicated their first preference would be for a cleaner coal plant.

The six Nationals who signed the letter include frontbencher Michelle Landry — an outspoken advocate for a new cleaner coal plant — as well as Keith Pitt, Llew O’Brien, George Christensen, Ken O’Dowd and outgoing senat­or Barry O’Sullivan.

“We the undersigned call on the Coalition executive to take immediate action to legislate the big stick bill in the next parliamentary sitting and to underwrite new gener­ating capacity (power station­) construction for regional Queensland,” the letter said. It warned that voters in the MPs’ regional Queensland seats were at their “wit’s end”.

“Since our government’s election in 2013, our constituents have consistently raised with us the cost of energy in our electorate and our state,’’ the letter said.

“The combination of drought, other natural disasters and a recalcitrant Labor state government has our local industries, small businesses and everyday consumers at their wit’s end. They simply cannot continue to pay such exorbitant energy costs.”

Regional Queensland will be a key battleground in the federal election campaign, with the ­Coalition defending a string of marginal seats and hoping to wrest the Townsville-based seat of Herbert from Labor.

The MPs said the cost of electricity in regional Queensland was governed by the Labor state government, which “owns the only retailer, all of the poles and wires and 70 per cent of the generation ­capacity. Without divestiture powers, in our view, no action can be taken which would cause Queensland Labor to reduce power prices”.

The letter follows the announcement by Scott Morrison of a $2 billion top-up for Tony ­Abbott’s direct­ action fund to tackle climate change, and a further $1.4bn equity injection in the Snowy 2.0 pumped hydro project.

The government has also announced $86 million towards a new Tasmanian hydro power project, Battery of the Nation, and a new Bass Strait transmission link.

The letter, copied in to Energy Minister Angus Taylor, was sent after Nationals were denied a party­room meeting last month to discuss deferral of the “big stick” laws aimed at cracking down on energy market misconduct.

The proposed divestiture shake-up — opposed by Labor and big business and initially attacked by energy companies as unconstitutional — is seen as a major initiative of the minor Coalition partner, with some Nationals ­arguing for a broader divestment power to be enshrined in law to capture supermarkets and banks.

The government deferred the legislation last month after the Greens threatened to move an amendment that would prevent public money being used to underwrite coal-fired power stations.

Mr Pitt and Mr O’Brien yesterday urged the government to put the “big stick” laws to a vote, even if Labor and the Greens tried to sabotage or defeat the bill in the house.

“If the Labor Party want to vote against lowering energy ­prices and cost of living in this country, then we should let them,” Mr Pitt said.

“I want to be able to look every one of my constituents in the eye and tell them we have done everything we possibly can to deliver lower energy costs.”

When asked today if the big stick policy was a test of Mr McCormack’s leadership, Mr Pitt told ABC radio: “That’s a question for Michael. We are asking for action and I suspect he will have the horsepower to get it done.”

Mr O’Brien said the “big stick” was a “matter of priority” that meant “putting the legislation to a vote at the first opportunity”.

Asked whether he would broach the issues raised in the letter with the Prime Minister, Mr McCormack said the government would “consider these matters again when the parliament resumes in April”.

“I speak with the Prime Minister regularly on matters of importance to regional Australia, such as power prices that are hurting households and small businesses at the moment,” he told The Australian. “That’s why the Australian government has introduced legislation into the parliament to help set up permanent ways to reduce power prices for all consumers.”

A spokesman for Mr Morrison told The Australian: “Every Liberal and Nationals member wants to see lower energy prices, which is why our legislation is so important and why we want it to pass un­amended through the parliament.

“It’s a stark contrast to Labor who … refuse to back any mechanism to ensure we have reliable, ­affordable power for Australian families and businesses.”

Opposition treasury spokesman Chris Bowen said this morning he agreed with the rebel National MPs about bringing on a vote on the “Venezuelan-style” big stick bill in the budget sitting week.

“I’m happy for it to come to a vote because Labor will be voting against it,” he told ABC radio.

“The National Party are right to say parliament should have a say … this is an anti-business, anti-investment, Venezuelan-style, socialist intervention from a government that believes in nothing.

“This is a piece of populist gimmickry on the part of Josh Frydenberg … it is appalling policy.”