Downer tries for nuclear reactionPia Akerman April 23, 2007...

Downer tries for nuclear reaction
Pia Akerman
April 23, 2007

ALEXANDER Downer has attempted to muddy the waters ahead of Labor's debate on the future of its "no new mines" policy by calling on South Australian Premier Mike Rann to visit Chinese nuclear power plants to see the future destination of his state's uranium.
As Mr Rann prepares to lead moves at Labor's national conference this week to overturn the party's opposition to new uranium mines, the Foreign Minister has written to him arguing that it would be "useful and prudent" for him to examine Chinese nuclear power production.
This was particularly so in light of nuclear co-operation agreements between the two countries in January, which opened the door for Australian uranium exports to China.

Mr Downer's suggestion is seen as an attempt to corner Mr Rann in the lead up to the Labor conference by highlighting his support for the export of uranium for the overseas production of nuclear power while opposing a domestic nuclear industry.

"It would be useful and prudent for you to visit the ultimate destination of South Australia's uranium exports, to see how this resource produces clean, safe energy and for you to be briefed on the stringent safeguards standards that Australia imposes," Mr Downer wrote.

He offered his department's support for any trips Mr Rann took to nuclear facilities in China or elsewhere. But South Australian Minister for Mineral Resources Development Paul Holloway yesterday rejected Mr Downer's invitation.

"You don't need to visit nuclear plants to understand what the economics of nuclear energy are," Mr Holloway said. "Nuclear energy will cost a lot more to generate than the alternatives we have available to us here in Australia. It really isn't an option here."

The Rann Government has repeatedly ruled out the possibility of a nuclear power plant in South Australia, despite the state's booming uranium industry. The state Government received $9.8 million in uranium royalties from mining in 2005-06, a figure which the proposed expansion of BHP Billiton's Olympic Dam would increase dramatically.

South Australian Opposition Leader Martin Hamilton-Smith backed Mr Downer's invitation, saying Mr Rann's firm stance against nuclear power was inconsistent with his support for uranium exports.

Mr Holloway expressed confidence that Labor's "no new mines" policy would be overturned at the party conference, which begins on Friday. "It will be a close vote, but I expect change will be made," he said.

Mr Rann spent last week in Sydney and Melbourne lobbying delegates to support a reversal of the policy.