Stokes backs free power incentives to win over nuclear NIMBYs

Seven Group Holdings boss Ryan Stokes has suggested those driving the nuclear energy debate combat “NIMBYism” with free power incentives, while doubling down on his commitment to the burgeoning group’s struggling media arm.

The son of billionaire media mogul Kerry Stokes, and managing director of $17.2 billion diversified industrial services giant SGH appeared to back in the use of nuclear power at a business event on Thursday.

Seven Group Holdings boss Ryan Stokes said he believed it was time to progress the debate on nuclear energy.Credit: Jesinta Burton.

The 48-year-old said it was time for “sensible debate” around the use of nuclear as an emissions-free baseload power source, which has been thrust back into the spotlight by the federal opposition’s nuclear policy.

Stokes suggested cynicism could be “easily” countered with incentives for those living near nuclear infrastructure.

“You’ve got to have dependable power, and the whole network has to be in balance, so you have to match that demand and when you throw in a whole bunch of variable energy, you can’t do that – we can’t have 100 per cent renewables unless you’re going to build a ridiculous amount,” Stokes said.

“To deal with the NIMBYism — that’s easy. You can find ways to incentivise people to want to live around a nuclear environment where they have benefits, free energy, free power, or whatever the mechanism; you might be able to entice people who want to kind of be around that and remove the traditional concerns.

“I think the discussion will naturally evolve because nuclear is a carbon-free power source, so it makes sense to be talking about that as well to reduce carbon emissions.”

The comments come just days after opposition leader Peter Dutton travelled to Collie to discuss the party’s energy policy with the local shire, which involves converting Collie’s coal power stations into a nuclear reactor.

The opposition has proposed the construction of nuclear power stations on seven retired coal stations across the country as a means of reducing carbon emissions, but the plan has been met with staunch opposition by both state and federal governments.

Seven Group comprises a host of lucrative companies, including CAT dealer WesTrac; equipment hire company Coates; building products supplier Boral; and a controlling stake in oil and gas giant Beach Energy.

But it also holds a controlling stake in Seven West Media, the owner of the Seven Network and publisher of The West Australian newspaper.

Unlike the rest of the business, which recently recorded a 30 per cent jump in post-tax profit, the value of its media arm has nosedived under the weight of a weak advertising market and shrinking audiences.

Seven West Media has also grappled with major cultural issues – much like its major competitor Nine, owner of this masthead – with an ABC Four Corners investigation revealing allegations of bullying, harassment and misogynistic treatment in its newsrooms.

Stokes attempted to pour cold water on rumours he and his father disagreed on the future of the company’s $256 million media business.

He conceded the operating model needed a “reset” and that the business would need to consider how to better monetise its product, but insisted he still believed Seven West Media’s assets had potential.

“The issue is how to make sure we have an efficient cost structure to respond to that [market change],” he said.

“It’s a structural change that a lot of businesses go through. It’s challenging and painful, but we’ll be stronger for it.”

Stokes indicated he believed the federal government was unfairly bearing the burden of the housing shortage, labelling its shift to a government obligation “bizarre”.

But he said the government’s housing target was a positive move, given housing starts were almost half the amount needed to meet future demand.

Stokes has served as managing director of Seven Group Holdings for just shy of a decade.

He also serves as chief of his father’s private firm Australian Capital Equity, which counts its 34.4 per cent shareholding in SGH among its key investments.

Seven Group shares have climbed 13.5 per cent over the course of the year to $42.20.

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