Collie-Preston MLA Mick Murray said he was furious with a government announcement to back away from the $10.3 million commitment.

Mr Murray said the new body aiming to accelerate development of low-emission coal technology, the Federal Government’s new National Low Emission Coal Council, had yet to decide the allocation of the $1.5 billion between the States.

“It may very well decide to not allocate any funds to the WA coal mining industry because of our infancy in coal exporting,” he said.

“To say that the new National Coal Emissions Council aims to develop clean coal technology is a blow to those connected to the South West Coal Industry Development Fund, because this is what we have been doing for years.

“This group has been working hard to establish technologies such as geosequestration or carbon capture, and coal gasification into the Collie Coal Mining Basin.”

Mining Minister Norman Moore said the government had not backed away from the $10.3 million in funding towards the Collie Coal Industry Development Fund, and that the funding that was allocated in the 2008-09 budget papers was still available.

However, Mr Moore said the $1.5 billion in funding across all the States was for low-emissions coal projects, rather than exports, and it was hoped that companies would be able to propose significant projects.

“The Australian Government has allocated $500 million to the National Clean Coal Fund and the coal industry has indicated its support through a $1 billion fund,” he said.

“The objective is to put together a strategy whereby the States, the Australian Government and industry work together.

“I have just appointed Dominique Van Gent from the Department of Industrial Relations to be the WA representative to the National Low Emissions Coal Council and Jeff Haworth of the Geological Survey of WA to the Carbon Storage Taskforce to represent WA interests in the national forum.”