Federal Govt must reject new coal plant

The decision by the Victorian Civil and Administrative Tribunal to back and double the size of the a new coal fired power station in the La Trobe Valley is a terrible result for the climate, Greens MP Adam Bandt said today.

The Gillard government must now scrap the $100 million in Commonwealth funding earmarked for the HRL power plant or risk its clean energy credentials, Mr Bandt said.

"The Treasurer is talking about big cuts in this Budget. He should start by cutting public funding for this polluting coal fired power station," Mr Bandt said.

"The VCAT decision now puts responsibility for HRL squarely in the Gillard Government's court. The Government talks about a clean energy future but then funds coal power stations like HRL. It's like having your foot on the accelerator and the brake at the same time."

A motion moved by Mr Bandt calling on the government to redirect funding for the HRL station to renewable energy is currently before the Federal Parliament.