Howard to defy US on nuclear plant
Dennis Shanahan and Joseph Kerr, The Australian
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AUSTRALIA is set to defy international pressure as the Howard Government considers cost-effective nuclear power and a new era of coal technology.
Despite pressure from the US, the Howard Government is determined to consider nuclear power as part of its wide-ranging response to climate change.
The Government is convinced it can get its nuclear agenda past the objections of US lawmakers who want to limit the club of nations able to enrich uranium.
There is concern within the cabinet that the Government has mishandled the politics of climate change and that major policy developments are expected within weeks.
Cabinet is about to consider plans leading to a $5bln investment in new technology as the Coalition's nuclear inquiry concludes nuclear power is cheaper than some forms of clean coal. The cost of brown and black "dirty" coal, and clean coal, varies from $45 to $110 per tonne.
The nuclear options inquiry being headed by former Telstra boss Ziggy Switkowski - due to report within two weeks - finds that nuclear power costs per tonne, including some capital costs, are about $100, which puts nuclear on an equal economic footing with clean coal.
But the Government nuclear power study is facing political resistance from the US President George W. Bush has been pushing a plan involving the major nuclear powers providing nuclear fuel to third party countries, meaning they will not have to develop enrichment technology.
Enrichment is considered a key proliferation risk and restricting the number of countries with the technology is considered essential.
But Australia, and Canada, as the world's largest uranium producers, are expected to resist diplomatic pressure to stay out of the enrichment industry.
The Prime Minister has previously indicated that the Switkowski report could provide the key economic argument for nuclear power in Australia.
John Howard is preparing a major speech on climate change which will attempt to regain the political momentum which the Coalition has lost in recent weeks.
Industry Minister Ian Macfarlane said if Australia did choose to go down the enrichment path the technology used would most likely be American.
He said questions about the international implications of Australia developing a uranium enrichment industry were speculative until Dr Switkowski released his report.
But if Australia did develop an enrichment capacity, it would be to the strictest standards.
"Until we see Ziggy's report we're not sure what he sees as the opportunities," he said.
He said there was currently an overcapacity of enrichment facilities in the world, and any move for Australia to use the technology would only come if it was commercially sound.
Under the US scheme, countries such as France and Japan could "lease" fuel to third party countries and take the waste back when it is exhausted.
According to the Australian Safeguards and Non-Proliferation Office, the International Atomic Energy Agency is supportive of a multilateral system for enrichment.
The G8 has proposed a system where sensitive nuclear technologies would only be available to countries that were committed to non-proliferation.
The actual criteria that would determine which countries fit the bill and which did not are still under development.
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