Meryl Swanson (Paterson, Australian Labor Party, Shadow Assistant Minister for Defence) Share this | Hansard source

Speaking of Thursday afternoon specials, I think we've just heard one! On the eve of the Glasgow conference, according to the Australian Coal Report, the price of export coal out of Newcastle—and this is for the Minister for Resources and Water, who was fetching around for it earlier—has hit another high. It's selling for US$230 a tonne, which is equivalent to A$307 a tonne or 4½ times the amount it was being sold for just one year ago. This seems at odds with a world trying to reduce global emissions, but it isn't. It's clear that coal will have a place in our energy mix going forward. There is no doubt about that, but it's not going to be forever. The use of coal by some nations is not, and should not be considered to be, at odds with Australia's goal of net zero by 2050.

Coal-fired power stations in Australia are closing. They already have, and they're giving us dates for more. Domestic demand for thermal coal will drop. There is no doubt about that. But international demand for Australian thermal coal is likely to continue to be strong in the short term and on to 2050. Decisions about the future of Australian coal exports—Hunter coal exports—won't be made in the Australian parliament; they'll be made in the boardrooms of international companies throughout the world. That's why we have to provide a solid basis for the Australian economy moving forward. This is not a statement of ideology or wishful thinking; it's just a statement of fact.

Coal from Newcastle and Port Kembla is exported to 18 countries, most of them to our near north in Asia. That's why we're seen as the growth engine of the world. Many of these countries are using our coal in coal-fired power stations to generate electricity, so that millions of people across those regions of Asia can flick on a light switch, as we have the privilege to do, and have the things that we take for granted here in Australia today. Newer plants—high-energy, low-emissions plants—have greater efficiencies than Australia's ageing plants and can make the most of the carbon capture used in storage technologies that are now becoming more and more widely used. Our coal is in demand because of these plants. Our coal is fetching high prices because of these plants.

I'm not for one minute suggesting that more coal-fired plants should be built in Australia or should be paid for with taxpayers' money. They won't be, and they shouldn't be. There is no appetite for it, despite what a small minority of those on the other side might have us believe. But that does not mean we should cut off our nose to spite our face. For the time being, our coal is in demand. Our coal is being used to generate electricity in Asia, in countries such as Japan, where the world's fifth-largest economy is being fuelled by Hunter coal, as well as South Korea, Taiwan and China. That market will continue. All of those countries will need to factor in their emissions in their efforts to address climate change, just as we will, and must, in Australia.

According to the Australian department of resources and energy, there will continue to be increases in the tonnage of coal we export both for steaming and coking coal, until at least 2026. After that, markets may decline. Markets are likely to decline. We have to be ready, and it doesn't give us much time. Fortunately, Labor has been thinking about this and planning for this and working on this, unlike those opposite, who are burying their heads in the sand. They are not a coalition; they're a rabble of infighting, Hunger Game alarmists. My community and the community of the Hunter Valley depend on coal, and we won't stand for it.

An honourable member: Squid Game!

That's right. They are living Squid Game; we are not. We won't squib you, but they might squid you—not all of the community, that is true. There are many, many other industries that thrive in the Hunter Valley, and we know that that's important too. It is true that not all in my community support the continued mining of coal. I hear that regularly from people and I understand, but I want to say to all of those people: 'We can't switch off coal overnight. We need to think about our communities. Please think about the workers in these industries who've worked with coal and relied on coal to put food on the table, to keep local businesses afloat and to keep their communities vibrant.' I want to say to those people who work in the coal industry: 'We want to protect you and your jobs. If you want to protect your jobs and our planet, vote Labor and do not trust this rabble of a government.'

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