WORLD

Not NEGative yet: Turnbull victorious in party room

THE Prime Minister has overcome what was considered a substantial hurdle in the progress of the National Energy Guarantee after the states gave it provisional agreement last week at the Council of Australian Governments meeting of energy ministers.

Paul Hunt
The PM might have pushed the NEG through the partyroom, but his next big fight is bringing enough support for the bill once it hits parliament. As it stands, the NEG would not pass the House of Assembly based on current numbers.

The PM might have pushed the NEG through the partyroom, but his next big fight is bringing enough support for the bill once it hits parliament. As it stands, the NEG would not pass the House of Assembly based on current numbers.

 The Coalition party room met today for two-and-a-half hours' debate behind closed doors before the NEG was finally endorsed. 
 
This means the framework can be taken back before states and territories for approvals before the government sends it to the parliament. 
 
At a press conference after Prime Minister Malcolm Turnbull described the support for the policy as "overwhelming," however media outlets have reported the debate as ‘testy.'
 
Energy minister Josh Frydenberg told reporters that he would take the NEG framework, released in a one page excel document this morning, to state governments seeking their final support for the policy and would later release a draft of the legislation. 
 
Frydenberg insists that there would still be ample time for states and territories to consider the policy following today, despite Victoria heading to a state election in just over two months and close to caretaker mode. 
 
The government may need the support of the opposition Labor party to ensure the policy framework can make it through parliament, today the prime minister ramped up pressure on  leader Bill Shorten. 
 
"The time has come for him to support the National Energy Guarantee," Turnbull said. 
It is apparent the corporate sector is also getting irritated with the delay in market certainty, renewing calls for policy implementation immediately. 
 
Last night the Business Council of Australia released a joint statement from heavyweights Alcoa, BHP, Rio Tinto, Shell and others, calling on federal, state and territory parliamentarians to take necessary steps to implement the NEG without further delay this week. 
 
"Not doing so risks volatile electricity prices, inadequate investment in new generation and a less competitive environment for Australian businesses," it said.  
 
While the NEG passed the, several members of the party still voted against supporting the legislation in the meeting and later spoke against it.
 
Former PM Tony Abbott reserved his right to vote against the NEG, as did conservatives Barnaby Joyce, George Christensen and Eric Abetz, when the bill hits the floor of parliament.
 
There are reports a total of five coalition MPs are considering crossing the floor and voting against the NEG. 
 
The Greens hold one seat in the Lower House, and given the government's minority majority in the house, if Abbott and cohort vote no in parliament the bill will go down again. 
 
Green MP Adam Bandt today released a statement aimed at the Labor Party calling on them not to ‘betray renewables by supporting NEG.' 
 
"With reports that 4-5 government MPs may cross the floor, Turnbull can't guarantee his NEG will even clear the House of Representatives," he said on social media. 
 
It's another inch forward after Friday's conditional COAG win, but the test will come within the fortnight as the planned legislation finally goes to parliament. 

 

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

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