PM changes mind on uranium sales to IndiaJulia Gillard is heading for a showdown with the Left of her party as she pushes to have Labor drop its ban on exporting uranium to nuclear-armed India.
In an opinion piece published in Fairfax newspapers this morning, Ms Gillard argues the move would strengthen Australia's relations with India, which is not a signatory to the Nuclear Non-Proliferation Treaty.
She says selling uranium to India for peaceful purposes will broaden Australian markets and increase jobs.
"We must, of course, expect of India the same standards we do of all countries for uranium export - strict adherence to International Atomic Energy Agency arrangements and strong bilateral and transparency measures which will provide assurances our uranium will be used only for peaceful purposes," she wrote.
"[We] must be prepared to confront difficult questions about maximising prosperity and the strength of our relationships in our region of the world."
Labor policy prohibits selling uranium to any country that is not a signatory to the Nuclear Non-Proliferation Treaty.
But pressure has been mounting to change the policy, with Resources Minister Martin Ferguson and Foreign Minister Kevin Rudd both in support of selling uranium to India.
India refuses to sign the treaty because it wants to retain the nuclear option to defend itself against nuclear-armed neighbours, Pakistan and China.
Mr Ferguson says India is not a rogue nuclear nation.
"The international approach to India has changed dramatically with the Nuclear Suppliers Group decision of 2007, led by the United States, to actually sell uranium to India," he said this morning.
"We can sell uranium as a nation to countries such as China and Russia, but under our existing policy, which is outdated, it actually is a hangover from the 1970s ... we can't currently sell uranium to India, the biggest democracy in the world, 1.109 billion people, which I might say, 400 million live below the poverty line."
He says the move is about "normalising" Australia's relationship with India.
"India could purchase uranium from a range of countries, but they are desirous, at some point, of being able to purchase uranium from Australia," he said.
"At the moment, we say to India, 'Yes, you can cooperate with us, for example, on defence, on customs, fighting against drugs, combating international terrorism ... but we don't trust you to actually handle safely Australian uranium'.
"It's about time we fronted up to the fact that India is a responsible nation. They have a desire to actually assist their community, to actually get out of poverty, with 40 per cent ... having fewer than 12 hours electricity per day.
"At the moment, I might say, 70 per cent of their energy actually comes from coal-fired power. The main thing they wanted to talk to me about last week was, 'Can you actually just find us more coal, thermal and coking coal?' This decision is also important from a climate change point of view, nuclear power is baseload reliable clean energy."
Mr Ferguson says India will still be required to negotiate a detailed protocol with Australia in terms of the safe handling and accountability of Australian uranium, with a proviso that it is only used for energy generation.
"That will be the policy position put by Labor at the national conference under the leadership of Julia Gillard. If that is ratified by the national conference, that will be the approach we take as a nation in terms of our negotiations with India over this complex issue," he said.
"In my opinion the party will again back the leader on this occasion ... because this is about modern Labor fronting up to a process of evolution in terms of actually looking forward, in terms of complex, hard political debates."
But Labor senator and Left faction convener Doug Cameron has told ABC News Radio he remains opposed to such a move.
"I would assume the majority of the Left would support that position," he said.
The Greens say most Australians would be horrified to learn the Prime Minister wants to overturn the ban on selling uranium to India.
Greens leader Bob Brown says it is a dangerous move.
"There's no doubt uranium, through this process, will end up in the stockpile of nuclear weapons in India," he said.
The Australian Conservation Foundation, which campaigns against uranium mining, says Australia cannot rely on assurances that India won't use Australian uranium to free up local supplies for its nuclear weapons program.
"India is a nuclear armed state that is involved now in a nuclear rivalry with Pakistan, there is a regional arms race, and India has made no secret that it wants to access foreign sources of uranium so it can
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