Nick Minchin (SA, Liberal Party, Minister for Finance and Administration) Share this | Hansard source

I am asked: what is your policy. Our policy is to make sure that we properly investigate the role that nuclear power may have in this country. That is why we established the task force headed by Ziggy Switkowski—to investigate that very question. The government does not have a policy to have nuclear power; the government has a policy, clearly enunciated, to properly investigate that issue under the expertise of Ziggy Switkowski and to report back to the government on the feasibility or otherwise of nuclear power. And, of course, if there is to be nuclear power in this country, the economic case must be made. At this stage it would be difficult to make the economic case—because this country has a significant advantage in low-cost coal and gas, which supply the mainstay of our base load power.

Nuclear power would have to become significantly cheaper than it is at the moment for it to compete with either coal or gas. However, the economics of these things may change. What Mr Macfarlane was pointing to was the possibility that the economics of nuclear power may well change in the decades ahead. If the government comes to the conclusion, and there is a consensus, that nuclear power has a role to play in power generation in this country it may well be that in 10 years a nuclear power station may commence. I happen to think at this stage that is probably optimistic.