A senior NSW Liberal Party figure says nuclear power generation is too expensive and a “Trojan horse” for the coal industry in his state, prompting the former state government to reject it.
Matt Kean, a former NSW treasurer and energy minister, told the ABC’s Q+A on Monday that nuclear failed his assessment on cost and supply, comments which put him at odds with federal colleagues pushing the technology.
On the program, he asked: “Is it going to drive down electricity bills? Is it going to ensure the system remains reliable? Is it going to set us up for a more prosperous future?
“On all of those three questions, nuclear did not meet the threshold for us in New South Wales.”
The comments expose a rift in the party on the issue, with federal leader Peter Dutton signalling nuclear will be a central plank in the opposition’s energy policy.
On Sunday, shadow treasurer Angus Taylor told the ABC’s Insiders that nuclear energy production was capable of delivering a return on government investment.
But multiple state Liberal figures have argued against removing bans on nuclear mining and nuclear enrichment facilities.
A fortnight ago, NSW opposition leader Mark Speakman told Q+A that investing in nuclear energy was not a path to lowering costs or securing electricity supply in the short term.
“We can’t wait for nuclear,” he said.
“We should be going ahead with our electricity road map, which will have heavy reliance on renewables.”
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‘Trojan horse for coal’
On Monday, Mr Kean described nuclear as “hugely costly” and a front for those against renewable energy.
“As we looked more into it, we found nuclear was a Trojan horse for the coal industry, wanting to keep coal going, and it denied transition to an industry that allowed lower bills,” he said.
Mr Kean, now serving as a shadow minister for health, says federal Liberal policy “is a matter for them”, but “I think they need to explain” the viability of nuclear power.
“In New South Wales, there were three tests we applied for our energy policy and nuclear did not meet those tests,” he said.
Mr Kean has long been a champion of renewable alternatives like solar and wind power, often putting him at odds with some in the party.
Last month, he quit Coalition for Conservation, a group he launched with other conservatives to promote action on climate change, when he says it became “singularly focused on nuclear energy”.
Labor divisions over gas
The Labor Party also exposed divisions last week over energy after the federal government launched a new gas policy backing domestic production until at least 2050.
MPs told the ABC they were “blindsided” by the policy.
“We cannot draw out our reliance on fossil fuels any longer than is necessary,” Ged Kearney, an assistant minister, said.
Mr Kean said gas has “an important role to play”.
“But this announcement doesn’t seem to have anything to do with transitioning to a net-zero economy and seems to have everything to do with placating the gas industry and propping up Jim Chalmers’s budget,” he said.
On Q+A, Mr Kean joined independent MP Allegra Spender and key crossbench Senator David Pocock in calling for miners to better contribute to the country’s wealth.
“This is the right thing to do and I think it’s up to us as Australians to stand up and say, ‘we want this’,” Ms Spender said.
“I think we need to be more brave and we need to stand up because Australians are asking us to do this.”
Mr Kean said the federal government should “incentivise the mining industry to invest in Australia”.
“However, when the profits go through the roof because of commodity shocks and stuff like that, the people of Australia should benefit from that,” he said.
“That’s why we need a tax system that incentivises investment but rewards the people of this country.”