Transcript

COMPERE: Back in Australia the row between the Commonwealth and Queensland Governments over greenhouse gas emissions is hotting up. First it was tree clearing, now power stations are causing friction between the levels of government.

The Commonwealth is questioning why Queensland's approved new coal-fired power stations when a multi-billion dollar gas pipeline project is on the drawing board.

Kirsten Aiken reports.

KIRSTEN AIKEN: The PNG Queensland Gas Pipeline is a proposal regarded in the national interest. It was discussed at a top level Ministerial meeting between the Australian and PNG Government's last week in Port Moresby. Just days afterward, the Commonwealth Government is warning the three-and-a-half billion dollar project is in jeopardy, along with Australia's commitment to reduce greenhouse gases under the Keoto protocol because of Queensland's decision to approve new coal-fired power stations.

ROBERT HILL: The new government, in its short time in office, has approved three new coal-fired power stations in Queensland and there's no doubt that with each approval, another question mark is introduced to the issue of viability of the gas pipeline.

KIRSTEN AIKEN: Environment Minister, Robert Hill, in his latest attack against Queensland over greenhouse emissions. Queensland claims it has no power to stop the development of the stations, but says the Commonwealth does.

JIM ELDER: They tick it off before we tick it off. They've got to tick of any environmental impacts before we tick off on them. So if you're aware of them and to actually then come out and say that we're responsible for it, really just shows a complete lack - I mean a complete lack - of effort and endeavour on the part of the Federal Government.

KIRSTEN AIKEN: Queensland Economic Development Minister, Jim Elder. But that's rubbish, according to Senator Hill.

ROBERT HILL: Queensland decides when and where it will have its own power stations. There is . in some instances the Commonwealth has power in relation to foreign investment in those power stations, which is relevant as I've said on occasions and not on others, but the issue of provision of power in Queensland and who gets the licence and who doesn't is solely within the hands of the Queensland Government.

KIRSTEN AIKEN: So who's right? According to the public policy Think Tank, the Australia Institute, both. Director Dr Clive Hamilton says the Queensland Government can stop the development of new power stations.

CLIVE HAMILTON: Well, on the one hand the States have an obligation, at this stage only a moral obligation, to take account of the greenhouse implications of activities within their States but there's also some validity in the Queensland's Government claim in that the Federal Government has taken on an international obligation for all Australians. At the moment that's a meaningless obligation until they introduce legislation to impose that obligation on the polluters themselves in the various States.

COMPERE: Dr Clive Hamilton of the Australian Institute ending Kirsten Aiken's report.