Scott Morrison set to plead Asia bank case in mission to Beijing
The Australian 12:00am December 8, 2016
Dennis Shanahan
Scott Morrison is prepared to fly to Beijing to intervene on Australia’s behalf in a dispute with the Asian infrastructure bank that is threatening to cut off lending that would help our energy exports.
The Treasurer said yesterday the Australian government was dealing with the proposed investment guidelines of the Asia Infrastructure Investment Bank — in which Australia has pledged almost $5 billion — with “direct intervention”.
Australia’s board member on the proposed $100bn Chinese-backed investment bank designed to help build roads, rail, ports and power generation in developing Asian nations has been authorised to fight the intention that lending be only for “socially acceptable” power generation.
As the AIIB is developing its lending principles, Australia has lodged a protest over the initial preference for “socially acceptable” power generation, such as solar, while ruling out nuclear and coal-fired power stations as well as limiting natural gas use.
Uranium, coal and natural gas are the backbone of Australia’s energy exports and when the government became a founding member of the Chinese-backed bank, it said it would help our energy exports.
Mr Morrison said yesterday the government was focused on energy security, affordable electricity to support jobs and growth and to keep Australia’s international competitive advantage of low-cost energy.
“We do understand the need to ensure we have an affordable energy-competitive advantage in the world,” Mr Morrison said.
“The Treasury is also seeking to support that type of position from our coalmining perspective through the investment bank in Asia to ensure we are not disadvantaged competitively in that process.”
The Business Council of Australia and the Minerals Council of Australia have backed the government to argue that the use of Australian thermal coal and natural gas “must be encouraged” as part of the reduction in carbon emissions and supply of electricity in developing Asian countries.