Dan Tehan: Coalition to look at coal subsidies, stick with nuclear

Subsidies could be on offer to extend the lives of coal-fired power plants, while nuclear is likely to feature in the opposition’s long-awaited climate and energy policy.

Political infighting within the coalition has intensified over the Liberals’ commitment to a target of reaching net-zero emissions by 2050, a position the party is poised to follow junior partner the Nationals in dumping.

The Liberal Party’s formal position on the climate target will be decided following meetings in Canberra mid-week.

But opposition energy spokesman Dan Tehan flagged subsidies could be offered to keep current coal-fired power plants operating for longer, while he also backed ramping up gas supplies.

“We need to make sure that we’re sweating those coal assets ... and also that we can get more gas into the system much more quickly,” he told Sky News on Sunday.

When asked if the opposition would support subsidies for coal plants, Mr Tehan said those discussions would take place and it was “absolutely crucial” to work with the states to ensure the fossil fuel would stay in the system to bring power prices down.

The NSW Labor government in 2024 moved to extend the life of Australia’s largest coal-fired power station, Eraring, while the Queensland Liberal National government wants to continue running coal plants until 2046.

Mr Tehan also foreshadowed the Liberals would continue their pre-election policy of supporting the development of nuclear power plants.

“Absolutely we want to see a nuclear policy, and we’ve already committed, through the coalition agreement to lifting the ban, and that will be very much part of the discussions we have,” he said.

Removing a federal ban on nuclear power in Australia, introduced under the Howard coalition government in the late 1990s, was a condition to mending the split between the Nationals and Liberals following the disastrous May election.

Pressure has been mounting on Opposition Leader Sussan Ley’s leadership over net-zero policies, which have divided moderate and conservative members of her party, while the coalition has been left reeling by a series of dire polls.

Mr Tehan backed Ms Ley when asked if she was up to the job.

“The majority in the party room said ... she was the person that should lead us to the next election,” he said.

“Let’s make sure that after the worst election defeat that we have suffered since the Second World War, that we start to get a policy platform that we can enunciate and take to the Australian people.”