Anthony Albanese’s shadow cabinet has agreed on a “pro-gas’’ peace deal as it seeks to defuse an open conflict within caucus on climate and energy policy and meet demands from major unions to back blue-collar jobs.
As Scott Morrison champions a gas-led recovery from the COVID-19 crisis, shadow cabinet endorsed a joint submission by opposition energy spokesman Mark Butler and resources spokesman Joel Fitzgibbon outlining a “statement of principles” forming the framework of Labor’s future policies on climate and energy.
The two-page document, debated and endorsed last month but yet to be distributed to the Labor caucus, was described by frontbench MPs as “pro-gas”.
While it backs the resource as a transition fuel to a net-zero emissions economy, the document also recognises Australia will not be a low-carbon economy “anytime soon”.
The Australian Workers Union, which has been critical of Labor’s equivocation on gas, is understood to be supportive of the contents of the document.
On Tuesday, CFMEU mining and energy national president Tony Maher and AWU national secretary Daniel Walton briefed more than 30 Labor MPs on the importance of gas and coal in the future energy mix.
Sources report the document says Labor “supports the gas sector and recognises all the important roles it plays”, including on economic growth, export income, job creation, electricity generation and providing feedstock for manufacturers.
They say the document also says Labor “recognises that gas will play an important role to get to net zero emissions” and the party supports the development of new gas reserves if they pass environmental approvals.
The document says the party will support “sensible measures” to expand the gas network if it is in the national interest.
The joint submission was an attempt to bridge the policy divide between Mr Fitzgibbon and Mr Butler, who have been openly at odds over energy and climate change policy.
“It is just full-on support. There is no equivocation,” one source said.
Another said: “It was a sensible landing point.”
A speech by Mr Butler in parliament on Thursday infuriated pro-resources MPs as he ridiculed the Prime Minister’s plan for a gas-led recovery from the pandemic. “The clear message being given by all business groups, by investors, by lenders by central banks, here in Australia and all around the world … is the economic pathways out of this COVID pandemic and the recession that is being driven by the pandemic should be paved with clean energy,” he said
Deputy Labor leader Richard Marles said Labor’s dispute over gas had been “settled”.
“We support the Australian gas industry. I mean Australia is the largest gas exporter in the world, of course we support the gas industry,” he said. “We understand how important its role is in electricity generation.”
Some Labor MPs are agitated that the gas document has not been released more broadly since it was endorsed by shadow cabinet last month, with party sources saying its language showed Mr Fitzgibbon had made headway in his internal policy war after finding support from the Construction Forestry Maritime Mining and Energy Union and the AWU.
“It needs to see the light of day,” a Labor source said. “People are frustrated that after all the process, it has now gone into Albanese’s drawer.”
Left faction sources have rejected claims Mr Butler largely adopted Mr Fitzgibbon’s position, saying the document was consistent with Mr Butler’s previous policies on gas.
The AWU and CFMEU on Tuesday handed a 15-page briefing document to Labor MPs. In the document, seen by The Australian, the two union figures warn that Australia will not become a renewable energy “superpower tomorrow if we de-industrialise today”.
“We need to maintain our heavy industrial base today to expand it,” the briefing document says. “Battery storage is not close to replacing coal. Currently batteries dispatch 0.08 per cent of total electricity generation.”
The document, titled A Sensible Pathway to Net-Zero Emissions, says gas versus renewables is a “false choice”.
Last month’s shadow cabinet meeting came after Mr Butler (opposition eneryg spokesman) had garnered internal criticism over an anti-coal and gas speech labelled by Mr Maher a “gratuitous insult” to blue-collar workers and regional communities.
In a speech to a climate change webinar last month, Mr Butler, a key Left faction ally of Mr Albanese, said coal and gas “come with a huge cost that to this day isn’t reflected in their price or in government policy. Now, 20 years into the 21st century, we know that coal and gas won’t underpin continued prosperity, whether for Australia or the rest of the world.”
The speech was subsequently deleted from Labor’s website.
Mr Butler and Mr Fitzgibbon’s public dispute over gas began in August when the opposition resources spokesman backed a proposal for government underwriting of gas infrastructure.
Labor MPs Julian Hill, Tim Ayres and Josh Byrnes were among caucus members who were critical of the underwriting proposal, which has not been addressed in the shadow cabinet document.
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