Ian Macdonald (Queensland, Liberal Party) Share this | Link to this | Hansard source

My question is to the Minister for Resources and Northern Australia.

Opposition Senators:

Opposition senators interjecting—

Scott Ryan (President, Special Minister of State) Share this | Link to this | Hansard source

Order on my left! Can we hear the question, please.

Honourable senators interjecting—

Can we please hear the question from Senator Macdonald.

Ian Macdonald (Queensland, Liberal Party) Share this | Link to this | Hansard source

If it's of any interest, I congratulated Senator Ryan hours ago, and I don't need to do it publicly to gain some notoriety, which apparently you do. My question is to Senator Canavan. I ask if the minister would update the Senate on the importance—

Opposition senators interjecting—

Scott Ryan (President, Special Minister of State) Share this | Link to this | Hansard source

Order! Order on my left!

Ian Macdonald (Queensland, Liberal Party) Share this | Link to this | Hansard source

of affordable, reliable, base load power to Australian households and businesses, particularly for my electorate of Queensland, in the north, where reliable base load and affordable power are so very important. I ask for the minister's comment on that.

Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Link to this | Hansard source

I thank Senator Macdonald for his question. He is a passionate supporter of the development of the north and knows how important it is to have reliable and affordable power to develop the north. As he was alluding to, there is no base load power station in North Queensland right now. Indeed, I will quote from a press release from a Treasurer a few years ago, which says:

Currently, the only base load power supply available to North Queensland is generated south of Rockhampton, making it cost-prohibitive for many resource projects being explored in the Northern Galilee Basin.

That press release was actually from former Treasurer Wayne Swan, who commissioned a review into the potential for a new coal-fired power station to be built in the north so that we could have some jobs and development in North Queensland, just like the rest of the country enjoys. That review came back a few years ago, in early 2014, and it concluded that a major coal-fired power station will put strong downward pressure on electricity prices. A review commissioned by former Treasurer Wayne Swan had that conclusion, and what's the Labor Party's view today? No to coal-fired power; yes to higher electricity prices. That's their position.

We know that too because a couple of weeks ago we found out that the Queensland Labor government were sitting on a report that said pretty much exactly the same thing. The department of energy in Queensland earlier this year commissioned a review to see what the impact of a new coal-fired power station in North Queensland would be, and guess what? It found that it would generate power at a lower price than currently exists in Queensland wholesale markets and that, under a mid-electricity scenario and a mid-price scenario, the power station would have a net present value of $359 million to $734 million. That means it would make money for the state of Queensland. It would make money; it would bring down power prices, and still the Labor Party say no to the people of North Queensland.

Scott Ryan (President, Special Minister of State) Share this | Link to this | Hansard source

Senator Macdonald, a supplementary question.

Ian Macdonald (Queensland, Liberal Party) Share this | Link to this | Hansard source

I thank the minister for that information, which is certainly enlightening. I ask the minister if he can outline how the coalition government is ensuring that Australians can have that reliable energy supply to keep those downward pressures on power prices, as apparently—as you say, Minister—the Queensland government had a report to say exactly that.

Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Link to this | Hansard source

I thank Senator Macdonald for his supplementary question. We're not shy—and I know Senator Macdonald's not shy—so we support the coal sector in the state of Queensland. We support the need for coal-fired power in Australia to keep prices down for the Australian people, as these reports commissioned by Labor governments show. They were not commissioned by coalition governments. These reports were commissioned by a former Labor Treasurer and the current Queensland Labor government, and they clearly show that—guess what?—having more supply of power brings prices down. Having a cheap source of power like coal-fired power brings prices down for Australians, and that's what we are for. That's why we are not shy of backing it. I support the leader of the Liberal National Party in Queensland, who has said that he will seek to build a coal-fired power station in North Queensland, with the support of the private sector, that will help the development of North Queensland. We're backing their desires and their wants to have the same kinds of job opportunities as everywhere else in this country.

Scott Ryan (President, Special Minister of State) Share this | Link to this | Hansard source

A final supplementary, Senator Macdonald?

Ian Macdonald (Queensland, Liberal Party) Share this | Link to this | Hansard source

Again I thank the minister for alerting us to other approaches of consultants engaged by the Queensland Labor government. But I ask the minister, is he aware of any additional alternative approaches to this question?

Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Link to this | Hansard source

As I was saying, the Liberal National Party in Queensland support the development of the coal-fired power station. The Liberal National Party opposition in Queensland will back the ability of Queensland to keep prices down for Australian businesses and for households and families in Australia.

We have this absurd situation right now where the Labor Party in Queensland say that they support the export of coal overseas. They say they support that, although we do question sometimes their veracity on that. They say they support that. But apparently we're not allowed to use some of that coal to keep prices down for ourselves in our own country. We're allowed to export it to Asia and all over the world, and they're allowed to use it to create jobs in their countries. But we're not, here in Australia. The coal doesn't get any cleaner on the boat. It can be used overseas or it can be used here. The only party in the Queensland election that's going to back job development and lower power prices in Queensland is the Liberal National Party, which is not shy to stand behind coal-fired power.

George Brandis (Queensland, Liberal Party, Attorney-General) Share this | Link to this | Hansard source

I ask that further questions be placed upon the Notice Paper.

Scott Ryan (President, Special Minister of State) Share this | Link to this | Hansard source

One issue remaining from question time was: Senator Wong sought leave to table a document, which was being inspected. Is leave granted?

Leave granted.