A bill imposing a moratorium on coal seam gas has been narrowly defeated in NSW parliament as a controversial CSG proposal in the state's northwest undergoes assessment.
The coalition government has been accused of forcing a quick vote on the coal seam gas moratorium bill to spare National Party members a public campaign on the issue.
The private member's bill passed the NSW upper house on Wednesday with support from Labor, the Shooters, Fishers and Farmers Party, the Greens and the Animal Justice Party.
But it ultimately fell at the next hurdle, with the lower house voting it down 38-36 after the coalition suspended government business to deal with it on Thursday.
It comes as a divisive Narrabri coal seam gas project, proposed by oil and gas giant Santos, undergoes assessment.
Shooters MP Roy Butler, whose electorate includes Narrabri, says the bill is about making sure that every possible protection and control is in place to protect water before anything happened with CSG.
"The vast majority of people in my electorate do not want to see CSG," Mr Butler said.
Lock the Gate Alliance spokeswoman Margaret Fleck accused the government of betraying rural people by voting against the bill.
"It is deeply troubling that, at a time when we are still struggling with the impacts of an unprecedented drought, the government would put our scarce water resources at further risk by encouraging the polluting and risky coal seam gas industry," Ms Fleck said in a statement.
But NSW Nationals leader and Deputy Premier John Barilaro said the bill's supporters had voted for "downward pressure on job opportunities and upward pressure on gas prices and energy prices".
"One of the things that we must look at is the opportunities to boost employment in regional and rural NSW," Mr Barilaro told parliament on Thursday.
"Every piece of development that happens in the regions has some level of impact ... but these are decisions that you make based on the expert advice, expert advice that comes out of planning."
Environment and Energy Minister Matt Kean also spoke against the bill, saying the Narrabri project should be considered on its merits like other developments around NSW.
"The fate of the Narrabri gas project should be decided by science and not politics," he said.
"That's why it's going through a rigorous, independent planning assessment process, like every project of that nature where there are considerable concerns in the community."
Independent MP Justin Field, who introduced the bill, accused the state government of rushing the bill through the lower house to avoid a public campaign for National MPs to support it.
"Normally legislation would be introduced and be given time for all members to consider the legislation and to hear from their local constituents on the issue," he said in a statement.
A spokesperson for the NSW Nationals said Mr Field's statement was "ridiculous" and the bill had been open for consideration for months
Australian Associated Press
