Deputy Prime Minister Barnaby Joyce says he would have no problem with the Government funding the development of future coal-power stations.

Key points: Malcolm Turnbull says coal will continue to play a major role in Australia's energy supplies

Malcolm Turnbull says coal will continue to play a major role in Australia's energy supplies Barnaby Joyce says government-funded coal-power stations not on the agenda yet, but he would have "no problem" with the idea

Barnaby Joyce says government-funded coal-power stations not on the agenda yet, but he would have "no problem" with the idea Opposition criticise prioritising coal over renewables, says coal will push up energy bills

His comments follow Prime Minister Malcolm Turnbull's address to the National Press Club, where he vowed to make energy security the defining political debate of the year.

Mr Joyce told the ABC that while using government funds to build new stations had not yet been proposed, he would "have no problems" with the idea.

"I reckon we should be building new coal-fire power stations," he said.

"We own one of the biggest sections of the resource and we are the biggest exporter of coal. It's morally prudent upon us to be at the forefront of the technology.

"At this point in time, it's not on the agenda. But to make it quite clear, I'd have no problems if it was."

While addressing the Press Club before Mr Joyce's comments, the Prime Minister said a total power blackout in South Australia last year was a "wake-up call" for the nation and accused Labor state governments of setting unrealistic renewable energy targets.

"The battlelines have been drawn — it's clear that the Coalition stands for cheaper energy," Mr Turnbull said.

"We are approaching this issue clear-eyed, pragmatic and objective."

The Prime Minister said coal would continue to play a role in Australia's energy mix for decades to come, despite the closure of major power stations like Hazelwood in Victoria's Latrobe Valley.

Mr Turnbull said the Government had invested $590 million in clean-coal technology since 2009, despite Australia not having a high-efficiency, low-emission power station.

"We will need more synchronous baseload power and as Australia is a big exporter we need to show we are using state-of-the-art, clean, coal-fired technology," he said.

"The next incarnation of our national energy policy should be technology-agnostic."

Opposition criticises preference for coal over renewables

Mr Turnbull said his office had written to the Clean Energy Finance Corporation to establish a new funding round for large-scale energy storage projects, including pumped hydro.

"Large-scale storage will support variable renewables like wind and solar, it will get more value out of existing baseload generation and it will enhance grid stability," he said.

The Prime Minister reaffirmed his commitment to meeting the Government's renewable energy targets, but said it would be done in a "practical, clear-eyed and objective way".

The Opposition's spokesman for climate change and energy, Mark Butler, said a preference for coal over renewables would mean higher power bills for Australians.

"While coal will remain part of our energy mix for the foreseeable future, everyone knows new investment in coal is ridiculously expensive and will push up power prices and push up pollution," Mr Butler said.

Childcare, taxes, and trade all on the 2017 table

The Prime Minister also outlined a new plan for child care and appealed to the hip pocket to spruik cuts to the business tax rate, claiming economic modelling showed it would save the average worker $750 a year.

"Years of research, much of it commissioned by the previous Labor government, has revealed a less obvious but very important fact: company tax is overwhelmingly a tax on workers and their salaries," he said.

But the tax cuts have so far proved unpopular with the Senate crossbench, with South Australian Nick Xenophon — who controls three votes in the Upper House — outlining concerns on Wednesday morning.

"We will support a tax cut for businesses up to $10 million, but beyond that we remain to be convinced about the need for that," Senator Xenophon told the ABC.

Mr Turnbull continued his attack on Labor on trade by confirming his commitment to the principles of the Trans-Pacific Partnership trade deal, despite the withdrawal of the US.

"We cannot retreat into the bleak dead end of protectionism," he said.

"We must compete aggressively to export our services in education, health, engineering, tourism and more, and we must pursue even greater access for our agriculture and manufacturers."

Mr Turnbull said export trade deals were expanding opportunities for Australian businesses, and criticised "political opportunists" for calling on the Government to turn inward and restrict investment.