Treasurer's lump of coal may be kryptonite

Independent senator Nick Xenophon has queried whether Scott Morrison's love of coal might prove to be a kryptonite moment for the federal treasurer.

Juggling coal in parliament could prove a kryptonite moment for federal Treasurer Scott Morrison, an independent senator believes.

Mr Morrison on Tuesday used a Productivity Commission review to make the argument Australians can't expect higher wages growth without making productivity gains.

But he chose to ignore the commission's call for a "proper vehicle" to reduce carbon emissions by implementing a single carbon price.

Independent senator Nick Xenophon reminded the treasurer of the time Mr Morrison brought a lump of coal into parliament to make a point about fossil-fuelled power.

"Was Scott Morrison holding coal or was it kryptonite?" Senator Xenophon asked reporters in Canberra on Wednesday.

"On this issue, I believe the commission is right. You need to have an efficient mechanism to reduce carbon pollution."

The commission said it was time to stop the piecemeal and stop-start approach to emission reduction.

Instead a proper vehicle was needed for reducing carbon emissions that puts a single effective price on carbon.

Cabinet minister Simon Birmingham said the government was committed to the technology-neutrality of its national energy guarantee energy plan.

"We have clear advice now from those most knowledgeable, most experts. We accept it. We urge the states, territories and Labor Party to get on board and accept it," he told reporters.

Labor senator Doug Cameron said the government had no energy strategy with Mr Morrison moving from "one thought bubble to another."

"We do need to make sure we are at the forefront of technology for electricity generation in the future," he said.

That did not include measures such as extending the life of ageing coal-fired power stations beyond their scheduled closure.

Senator Cameron worked as a maintenance fitter for seven years at the Liddell power station in the NSW Hunter Valley, which the government is seeking to keep open beyond its scheduled 2022 closure.

"It was a problem then, it's a massive problem now," he said.


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