Victorian Libs and Nationals cold on coal

The government's plan to underwrite new power generation has divided the coalition.

City and country politicians are split on the idea and cracks are also emerging along state lines.

Liberal MP Tim Wilson, who holds the blue-ribbon Melbourne seat of Goldstein, said if coal projects stacked up financially the private sector would build them.

"I'm not a fan of the government getting involved and building a new coal-fired power station," he told ABC radio on Tuesday.

"I don't believe that's coalition policy or ever has been."

Victorian Nationals leader Peter Walsh expressed similar views during a candid interview likely to open wounds within his party.

"I don't believe that the government should invest in a coal power plant," Mr Walsh told ABC radio.

"If private enterprise doesn't believe it's attractive to invest, why should the government do it?"

These views are directly at odds with six Queensland Nationals MPs demanding the Commonwealth fund a coal project in their state.

The rebels have the backing of high profile former Nationals leader Barnaby Joyce.

Mr Joyce dismissed the prime minister's claims the Queensland government would block a new coal-fired plant.

"Let the Labor Party say so," he said.

Federal Labor has already ruled out spending taxpayer money on new coal-fired power stations.

Opposition Leader Bill Shorten seized on the damaging coalition divide during a press conference in Canberra.

"Can the Liberal Party and the National Party of Australia please tell us what's going on?"

Liberal MP Craig Kelly and Nationals MP Keith Pitt have both conceded they don't know the finer details of their government's broader energy policy.

Mr Pitt - one of the six Queensland Nationals who are sparking up about energy - insists he is not wedded to coal, but finds his government's policy hard to articulate.

He wants something "tangible" to take to voters ahead of the election in May.

Australian Associated Press