Fed: Govt may go to constitution for uranium powers - Costello

AAP General News (Australia)
04-04-2006
Fed: Govt may go to constitution for uranium powers - Costello

CANBERRA, April 4 AAP - The federal government may resort to different constitutional
powers to override state objections to uranium mining, Treasurer Peter Costello says.

Both the WA and Queensland Labor governments oppose uranium mining in their states.

But, with agreements signed with China this week opening the way to Australia supplying
uranium, Mr Costello believes there is a way to override the state objections.

"It may be argued that, under our trade and commerce power, and it may be argued under
our external affairs power, that the commonwealth has the ability to facilitate the trade
and commerce of uranium and the export of uranium," he told reporters.

"I can't go any further in relation to that."

Mr Costello described Labor's no new mines policy as illogical.

"Here we are in modern-day Australia, in 2006, where we have the emerging Chinese economy,
which needs power, is interested in nuclear power, which is a signatory to the nuclear
non-proliferation treaty, which will observe all of our conditions, to which we will sell
some uranium, but people say it can only be sold if it comes from that mine, and not that
mine," he said.

"Where's the logic?

"Uranium is either all bad, in which case there should be no mines, or it's acceptable,
in which there should be such number of mines as are commercial.

"But there's no logic in saying it's good at three mines but bad everywhere else.

"I think the Labor Party will change its position but it's just a question, really,
now as to whether or not Mr Beazley can show enough leadership."

The new arrangements between Australia and China open the way for uranium sales to
the Asian superpower and allow the countries to cooperate on nuclear technology.

Uranium sales to the rapidly growing Chinese economy could be worth billions of dollars
for Australia, which has 40 per cent of the world's known uranium deposits.

AAP dep/so/drp/nf

KEYWORD: URANIUM COSTELLO

2006 AAP Information Services Pty Limited (AAP) or its Licensors.