Thursday, 4 August 2022

Victorian Energy Efficiency Target Amendment Bill 2022

Second reading

Debate resumed on motion of Ms D’AMBROSIO:

That this bill be now read a second time.

Mr SOUTHWICK (Caulfield) (10:25): Deputy Speaker, congratulations to you on your new role.

It is a pleasure to rise and speak on the Victorian Energy Efficiency Target Amendment Bill 2022, and can I say at the outset that the opposition will not be opposing this bill. We believe in energy efficiency. We believe this is very important in terms of reducing emissions, in achieving energy efficiency targets and in tackling climate change. Also, if I could say at the outset, I am very proud of the Liberal-Nationals policy which we announced around providing real solutions to all Victorians when it comes to climate change, setting achievable, real targets of net zero by 2050 and a 50 per cent legislated target by 2030. I want to say on the legislated target for 2030 that this is something that provides certainty for industry and provides certainty for consumers. It is something that we have working with the New South Wales Liberals on—they have led the way over a number of years in tackling climate change.

It is very interesting that those opposite, the government, seek to play politics with this, because I would have thought, when we have jumped on board and even lifted the bar to talk about legislating a target for 2030, the government would have said, ‘Well, that’s a great idea. Let’s not play politics when it comes to climate change, but let’s actually work together when it comes to climate change’. Surprise, surprise, the Minister for Environment and Climate Action could not help herself. Off she was, having a crack at me on Twitter because she has got nothing better to do. Well, can I say through you, Deputy Speaker, to the government that now is the time to take politics out of climate change and to work together in a race to the top to ensure we have a planet that will be sustainable, that we will be able to fight and combat climate change and that we will be able to work together, whether that be industry, consumers, the public or families—everybody—but, importantly, that will be led by government from all sides.

There are times for arguing. Certainly we may have a very different view on the way we get there to the government, and I am going to talk today about our views on how we reach climate change targets. We have a different view on how to get there because we believe a big part of this needs to be industry led, because it is industry that largely create these emissions and industry now acknowledge that they need to tackle these emissions through innovation, through certainty, through technology and through responsibility. It cannot be government doing everything. That is the difference between the Labor side and the Liberal side. We believe very much that everyone should take shared responsibility and it is not just government lifting the game here but it is everybody working together to achieve climate change targets and to ensure we have a better planet, better environment and better community.

Can I say on this—and I will not go much further, because again the minister for the environment just cannot help herself—I would have thought, with the fact that we have got an energy crisis and we have got a situation where gas and electricity prices are a point where people are choosing whether they eat or whether they heat their homes, the minister would be pretty busy at the moment, but all the energy and environment minister is doing at the moment is having a crack on Twitter. You know what, I suggest the minister does her job, because we need to ensure the cost of living is central—first and foremost, that people can afford to heat their homes, and as part of that that we have affordable energy bills, a climate change target we can all reach, renewables that we can bring into the market and that we can get on with it.

I remind the minister that when she tweets out and tells me about all the things that I have said in the past, how about I get a tweet talking about the renewables revolution? Back in 2016 I was the shadow minister, and it is a privilege to be the Shadow Minister for Energy and Renewables again. How about I get a Twitter shout-out again from the minister saying, ‘Do you know what? Back in 2016 you called it a renewables revolution. And guess what’s happening now? It is one’. We are seeing renewables coming into the market, and that is what we are doing. That is what we have said in our absolute focus on real solutions for all Victorians in terms of the climate when it comes to things like our homes package, when it comes to big batteries and when it comes to the $4400 for batteries and solar to get 1 million Victorian households on batteries and solar—not having to choose either batteries or solar but being able to have both in 1 million Victorian households. We are one of the largest jurisdictions in the world to uptake solar. Australians have really adopted solar in a big way. We now need to shift the game to get batteries as well, because that storage will take more pressure off the grid and ensure that we are able to have enough power to keep the lights on. On that, there are a number of other things that we have proposed, including a hydrogen policy of $1 billion looking at, again, zero-emission energy coming into the market in the future. It is about green hydrogen—using that for research and using it for infrastructure to be able to get hydrogen into the market and to be a market leader, which is where Australia can be when it comes to hydrogen.

Another important part of our policy is to talk very much about the focus on connecting the grid. This government has been very, very big on cutting ribbons on large-scale projects. We believe that we should have large-scale projects—wind, batteries; terrific. Off you go and do it. But you cannot create the fastest, swiftest, best car if you do not have the highway to drive it on, and that is what has happened here in Victoria. We have the Ferrari but we do not have the roads. What we need to do is ensure that we have got the actual energy programs connected up to the grid. If you look at what happened when we saw the closure of Hazelwood power station, 1800 megawatts of power were taken out of the market. And guess what? At the moment, because of the lack of grid connection, we have got 1800 megawatts that cannot be connected back into the grid from large-scale wind and solar. It would be a very, very easy transformation. If the government had their eye on the ball and the minister spent less time on Twitter and more time actually doing stuff, then what we would have is the 1800 megawatts connected to the grid.

Instead of wasting it—it is no use having a wind farm churning around and pumping out energy and putting it nowhere—that wind that we are creating, that solar that we are capturing, needs to be plugged in. At the moment we do not have the power cables to plug it in and to use it. It is all a media stunt. We have got to get beyond media stunts, which this government has been very, very good at, and do real, practical stuff. Let us plug it in, let us make it work and let us ensure we drive down power prices and we achieve the climate change targets. You can do it with real solutions. You can do it with a plan. You can do it if you actually believe in it and focus on it. That is what we are doing, and that is why we believe our policy is so important for fixing the Victorian grid, making sure you can plug stuff in and making sure it works.

The last part of our policy, which is really important, is about onshore conventional gas—not fracking. We were the first ones, absolutely, to the party and on the unity ticket for banning fracking. Absolutely we do not need that. Regarding onshore and offshore gas and conventional gas, what did this government do? For five years they did an inquiry. They got the chief scientist and said, ‘Let’s go and have a look at it and see what happens’. Now they have finally come to the party. It has taken seven years—seven years to be able to say, ‘Do you know what? Let’s go and have a look at bringing some gas into the market as a transition to renewables’. Well, in that time we have had a shortage of gas, and in that time instead of using local gas and being able to use that gas for Victorians, like Western Australia does—Western Australia has the situation where 15 per cent of the gas that they find in Western Australia stays in Western Australia, and we should do the same; gas that is found in Victoria should stay in Victoria; let us look after Victorians first—the government have just kicked the can down the road.

We have a shortage, and when you talk about emissions and when you talk about climate change, what are we doing? We are importing our gas. We are sending gas halfway around the world and bringing it in. Not only what a waste and what a cost but also what an impact on the environment this is. We are actually shipping gas halfway around the world and bringing it back again. That is a problem that needs to be fixed. There is a real solution: conventional gas that is found in Victoria should stay in Victoria. Get it done, stop kicking the can down the road and ensure we have a transition fuel. Coal-fired power stations are going to close. What are we going to do in the meantime? We need to have that transition fuel so we can take up renewables as real solutions to keep the lights on.

If you could not find a better example of a government that might be okay in terms of intent but hopeless in execution, have a look at what we are talking about today in terms of these Victorian energy efficiency targets. The idea of this is to make efficient appliances—whether they be fridges, washing machines, heaters or coolers—and to get the market to actually make them so you have got this 6-star rating, so they are something that is not creating a whole lot of emissions. Make them efficient, get them into the marketplace, reduce power bills and reduce carbon. Terrific. Brilliant. This project started in 2008. We continued it through when we were in government. We have got no problems with having schemes like this; we have a problem with the way they are run. That is what we have a problem with—the way they are run. Again, if the minister got off Twitter and actually did something, we would not have the problems that we have now.

Only a few weeks ago we rolled out those fridges. I mean, I was out in Elsternwick in one of my restaurants, I was having a meal in the Mediterranean Greek Tavern with my family, and we were told, ‘You’re not going to believe this, but a truck came past Glen Huntly Road with a whole lot of fridges on the back of it’. I was like, ‘Come on, you’re joking’. He said, ‘No, no, no. They weren’t fridges that fell off the back of a truck, but they could have been’. I said, ‘What are you talking about?’. He said, ‘They had these fridges loaded up and a guy came out and said, “How many do you want?”’. I went, ‘No, that can’t be true’. I could not believe it. It could not be true. He said, ‘No, all you’ve got to do is sign a bit of paper and away you go’. Now, this was a responsible retailer, but he was telling me about other stories that he had heard from others. He said, ‘Do you know what? This scheme is so dodgy that you can actually take the fridge off the back of the truck, plug it in, take it out of the power point and sell it on eBay and then get another one’. I was like, ‘No way would the government be so stupid and irresponsible with money to be able to do something like that’.

I cannot believe that this government has failed in doing that, and the reason why I cannot believe it is that it is not the first time. The government had light installations being changed to get LED lighting, and I remember that from when I was a shadow minister back then in 2015–16. We had scams with lighting back then. We had installers that would come to little old ladies’ homes and say, ‘Excuse me, would you like free light bulbs?’. They would ring them or doorknock them and say, ‘Would you like free light bulbs?’. Many of these people said no. What did these dodgy installers do? They put in an invoice and got a payment from the government. That was under this government; under this minister, that is too busy on Twitter rather than actually doing something; and under this minister, that has just been hopeless at managing anything. Seriously, they could not manage a chook raffle. These people were ripping off taxpayers and harassing little old ladies, pensioners, to take up these systems.

Again, that was discussed and legislation was tightened, and I would have thought because it was highlighted that we had the problem back then that surely we would not be coming to the Parliament today and trying to tighten up the laws again because of those dodgy installers. No, surely that would not happen again. Well, it is groundhog day. We are back again trying to stop the rorting from happening because this government have taken their eye off the ball and they are too busy on Twitter having a go at the opposition. Well, do you know what? I reckon with the amount of debt that Victorians are in at the moment from the budget blowouts and with the cost-of-living pressures that each Victorian faces, the government should be doing their job. I reckon that we could get energy efficiency and we could tackle climate change and we could do it economically and responsibly. That is what I reckon we could do. That is what I reckon each Victorian taxpayer should expect from their government. This is great what we are talking about today—bringing in rules and tightening up the rules to make sure you have a fit and proper person who is going out and doorknocking your home—with this legislation. Then there is this article in the Herald Sun about Labor’s bungled fridge carbon credit scheme worth $52 million. It talks about:

Victoria … created almost $52 million of carbon credits this year … under a now-suspended appliance scheme that was rorted.

A member interjected.

Mr SOUTHWICK: Rorted.

New figures reveal the scale of the Victorian Energy Upgrades program …

as it comes under heavy scrutiny, for obvious reasons. This article also talks about how other parts of the Victorian energy upgrades program are not immune. One company was suspended last week over allegations of fraud involving LED light installations. Nearly $3 million of carbon credits were also confiscated. Groundhog day—not just the fridges, the lights. No wonder this economy and this state are in such debt. No wonder we have a situation where the cost of living is through the roof. Every time you get hundreds of billions of dollars that have been misappropriated or wasted, what happens is the government does not pay that—we pay it. When these energy systems come together, when these schemes come into play, it is not free money—the money needs to be put back on your energy bill. Now, that is all fine when they work. That is all fine when everybody gets a fair go and access to them, but it is not fine when they are rorted under this government, as we have just seen.

This is a really serious problem. I understand that the system has now been suspended. I am not sure what is happening with those people that have purchased fridges or the suppliers that are meant to be installing these fridges. I am not sure what is going to go on with all of this, how long this is going to take and what mess has been created. This bill has been scrambled in to probably tackle half of these issues that we have got at the moment—to deal with a fit and proper person and to ensure that this stuff does not continue. But you know what? We have got to fix it. We have got to get the fit and proper person test to ensure that these people are accredited and they are proper licensed providers, not dodgy operators.

This scheme did not come into place yesterday. This scheme has been in place since 2009. Since 2009 we have had the opportunity to set up what the fit and proper person test is, since 2009 we have had the opportunity to establish a code of conduct framework for this scheme, since 2009 we have had the opportunity to ensure we strengthen reporting requirements and since 2009 we have had the opportunity to ensure we strengthen governance provisions—all items within this bill, all things that ensure transparency, accountability, responsibility and the stopping of rorts, something this government knows a lot about. We have seen the red shirts rorts. We have seen the IBAC reports into the way the government misuses and misappropriates taxpayers money when it comes to a whole range of different things. We have seen that. We have seen that the government has got good form in rorting. But here is a scheme that is meant to be around helping people with energy efficiency and they are up to their old game again: more rorting, more waste, more mismanagement, and up goes the cost of living.

I say coming into the election that the government will be judged on a whole lot of things. We have got a health crisis—we know that. We need to ensure we get hospital beds and waiting lists and ambulances working. We have got a situation with our schools—we have got to fix them. We have got a situation certainly in terms of corruption, which this government is up to its eyeballs in. We have got a situation with the cost of living. I think cost of living will be a pretty big thing coming into the election, because I know a lot of people that are struggling at the moment; they really are. It is a huge situation, the cost of living. You are seeing interest rates going up, impacting just buying basic grocery items. You are seeing petrol prices. You are seeing 42 new taxes. The government said, ‘We aren’t going to bring in one new tax’ before the last election. Well, they were right. They did not bring one new tax in, they brought 42 of them in—42 taxes.

This government has got great form in taxing people. They have got great form in rorting people. This is a rorting, corrupt government. Here you have got a situation of energy upgrades that should have been pure as day, that should have been perfect in terms of energy efficiency, perfect in terms of climate change and perfect in terms of real solutions to ensure we got reduced carbon credits. And what did the government do? They rorted the carbon credit system. They rorted it—free fridges off the back of a truck.

Are you serious? I cannot believe that people would drive down and literally have fridges fall off the back of a truck, like this government has done. They fall off the back of a truck—‘How many do you want?’. This is unbelievable. I still think that if you went to most Victorians out there and said, ‘Guess what? The government have got this system in place that allows you to kind of go out there and get as many fridges as you like—take one and then resell it on eBay, pocket the cash and go and get another one as well’, they would say, ‘Are you fair dinkum?’. And who pays? We all pay. The government have the absolute audacity to say, ‘Look how wonderful our program is’. They absolutely stuffed the first energy upgrade with lighting—absolutely buggered it with shysters going around doorknocking people. Absolute shysters would come down to doorknock you and push you—or ring you and force you—to adapt your lights or even take an invoice without putting them on. Now they have done it again with fridges, and they are doing it again with lighting. Well, do you know what? Get it right. Get it right.

The energy upgrades system has a great ability to do a number of things. We should be doing a whole range of stuff in terms of energy efficiency. Our program is for real solutions—for climate change, for energy efficiency, for keeping the lights on. That is what we are going to do. We are going to deliver. This minister needs to get off Twitter and start doing her job. That is what she needs to do: get off Twitter and start doing her job—simple. People cannot afford to keep the lights on at the moment. They cannot afford to pay their bills at the moment. We cannot have fridges falling off the back of a truck, where we all have to pay for rorters. We cannot have it. That might be okay in the Labor Party, to be rorters, but it is not okay to have the same game played out for many of those businesses and say, ‘Let’s set up a scheme and allow people to rort Victorians and rort taxpayers’. That is not good enough. It is not good enough. I am sorry, but you cannot create a scheme that is set up so people can just rort it and have taxpayers money rorted. We should not be hearing about a scheme that was set up in 2009 and is already in question because the government could not get it right. We are back here again debating legislation to tighten the laws because we have got the cold truth of Labor’s bungled, rorted fridge program. Here we go.

Mr Fowles: On a point of order, Deputy Speaker—I have actually got heaps of points of order. The first is the member on his feet is using props. The second point of order is we are well into the bounds of tedious repetition. The third point of order is that the member is not anywhere near the substance of this bill. I would ask you to ask him to refrain from tedious repetition, stop him using props and bring him back to the bill that is before the chamber.

The DEPUTY SPEAKER: Thank you, member for Burwood. Member for Caulfield, can I just remind you in relation to using props that that is not permitted.

Mr SOUTHWICK: Sure. I am happy to table the props for the house. If you would you like me to incorporate this in my speech, I am happy to do that. Can I seek leave to table this in the Parliament?

The DEPUTY SPEAKER: No, unfortunately it is not appropriate. You can keep that.

Mr SOUTHWICK: Okay. That is fine, no problem. Sure.

The DEPUTY SPEAKER: Can I ask you to—it has been a wideranging debate—just get back to the matter that is before the house.

Mr SOUTHWICK: Well, on the point of order, Deputy Speaker—

The DEPUTY SPEAKER: Member for Caulfield, I have ruled, so you can continue with the matter before the house.

Mr SOUTHWICK: Okay. That is fine, no problem. I am happy to talk about the fridges that are part of the energy upgrades agreement specific to this bill for the next 6 minutes. That is very much on the bill, because energy efficiency and the fridges which have been rorted under a scheme this government has mismanaged are right on the bill and right on the money. The reason why we have this legislation, member for Burwood, in this house is that the Labor Party has set up a scheme that has rorted taxpayers. The Labor Party are good at rorting. We have seen that with the red shirts rort and we have seen that under two IBAC investigations, and this is another example of the government rorting taxpayers.

Mr Fowles: On a point of order, Deputy Speaker—and this is an entirely predictable point of order—no sooner had you asked the member on his feet to come back to the bill than he was straightaway drifting off on an unhinged frolic on a whole range of other matters. I would ask you to bring him back to the subject matter of the bill.

Mr SOUTHWICK: On the point of order, Deputy Speaker, the actual fridge program that I am talking about that has been rorted—taxpayer money that has been rorted—is right on what this bill is all about. That is what I am referring to. This is the government that is actually managing the scheme, and I am referring to the rorting that has taken place under this government’s leadership—or lack of leadership.

The DEPUTY SPEAKER: Member for Caulfield, I repeat that you should remain on the bill that is before the house.

Mr SOUTHWICK: As I said, we have Victorians that are doing it really tough at the moment, they really are, and the last thing that they expect is that the government would rort a system like they have done with this fridge program—the fridge program which is part of the energy upgrades agreement, like we had with the lighting program under the energy upgrades agreement. Both of these schemes were set up to reduce energy or to create energy efficiency and reduce emissions. That is something that we on this side of the house think is a good idea. We want to see carbon reduction. We agree with carbon reduction, but we do not agree with rorting, member for Burwood. We do not agree with rorting, and that is what has happened, plain and simple. The Herald Sun, which I have quoted in here—and I am not making the words up—has stated, and let me say it again:

Victoria has created almost $52 m in carbon credits this year … under a now-suspended …

and the opposition has not suspended the program, the government has suspended the program. The government has suspended the program because these appliance schemes were rorted, stolen—define ‘rort’. That is right in line with the bill. I would be happy for the member for Burwood to make as many interjections as he possibly can to take a point of order, because I am sure that many of his constituents in Burwood, along with every other government member’s constituents, would be horrified to think that taxpayers money had been used and abused like it has in this scheme. This was poorly managed. It is a disgrace that this government would poorly manage a program like this just at a time when people are doing it so tough. They have effectively said to people, ‘Off you go. Get as many fridges as you can into as many businesses as you can. Put in an invoice, and the government will pay. Even if you resell the fridge on eBay, the government will pay’. What a disgrace.

There are so many good things that this program could be. There are so many things that this government should be doing. We could be getting smart homes. We could be getting more energy pumps—heat pumps which are not even star rated—in the home. The government talks about getting people off gas and onto electricity in the home, and the heat pumps to get people onto electricity are not star rated. The government are all spin when it comes to climate change and energy efficiency. They have got no idea about practical implementation. It is a government, again, and a minister that is so busy on Twitter that they have no time to get things done, no time to lay a plan, no time to lay a grid. There are 1800 megawatts that are being pumped into the sky because they are not pumped back into the energy grid—1800 megawatts of large-scale solar, wind, going nowhere because this government has not laid down the power lines.

We have got to get this stuff done. We have got to get energy efficiency. We have got to be able to get climate change sorted. We have got to lead the way. We have got to ensure that we do this properly with a plan, and that is what the Liberal-Nationals have. We have set a plan, we have set a target, we have outlined it. It has got solar, it has got batteries, it has got hydrogen, it has got connectivity, it has got certainty, it has got gas as transformation, it has a plan, and it will have a 20, 30, 50 per cent target legislated. I would hope today during this debate that every member of the government stands up as part of energy efficiency and climate change and says, ‘We support the Liberals’ position of legislating a 50 per cent reduction’. Here is your chance. Let us get on a unity ticket. Let us get a race to the top, not try and be political. Let us see how many attacks you have on me and attacks you have on the opposition, because at the end of the day it is not about me, it is not about the opposition, it is about all Victorians. Let us give Victorians hope. Let us give Victorians certainty. Let us take the politics out of climate change. That is what we are doing. That is what we released a few weeks ago.

Now we are giving you a challenge: come on board for all Victorians. Let us not make this a debate. We have got a legislated target. Let us see whether the government comes on board to do that. And do you know what? We will not fight you, we will not attack you; we will just congratulate you. We will stand together. I am happy to stand with the energy minister and sign an agreement together. I am happy to do that along with the member for Brighton, who has championed this and has done fantastic work on our climate policy. Let us all sit down together, sign an agreement and give certainty to all Victorians about climate change. Let us lead the way when it comes to climate change, energy efficiency, certainty, keeping the lights on and the cost of living—not rorting and corruption and what we have seen from the Andrews Labor government.

Ms THEOPHANOUS (Northcote) (10:55): My gosh, that was a lot of grandstanding from a party that has barely even recognised climate science over the last decade. And let us not forget that the last time they were in government they tried to abolish the Victorian energy upgrades program. We do not forget. Every time they get power it is cuts, it is delays, it is abolishing the infrastructure and the investment that we put in to create actual climate action. What a sham that entire speech was.

It is with great pleasure that I rise to lead the debate for the government in support of the Victorian Energy Efficiency Target Amendment Bill 2022, a bill which makes important changes to strengthen Labor’s highly successful and ambitious Victorian energy upgrades program. The VEU is our flagship energy efficiency program and is already having an enormous impact in cutting power bills and reducing emissions for homes and businesses. No other jurisdiction is doing this at the scale that we are—it is a massive program. But before I go into the detail I just want to set some context, because the VEU is just one aspect of Victoria’s nation-leading work to deliver climate action.

As we speak, Victoria is in the process of making one of the most rapid transitions to renewable energy in the world. We are a global leader in this. Our entire economy is set to shift as we embark on a hugely ambitious program of decarbonisation, electrification and emissions reductions. It is not a small thing, transforming our economy and our society. It is not a small thing, bringing communities along on a collective mission to undo some of the worst impacts of industrialisation. It is not a small thing to do it while generating prosperity for our state rather than entrenching disadvantage, and it is certainly not something that a slick marketing campaign or senseless speeches like that of the previous speaker can achieve. This kind of transformation takes perseverance and policy refinement. It takes diligence and negotiation and compassion. It takes considering and balancing our economy, employment, energy security and environment. That is the dedication that this Labor government and our Minister for Energy and Minister for Environment and Climate Action have put into this work.

The Minister for Energy is one of the most determined people I know, and I am honoured to call her a friend. I have no hesitation in saying that Victoria’s ambitious climate policy is in no small part because of the bloody hard work done by her and her team, day after day, with the backing of a labour movement that has pushed the envelope and the limits of what is achievable again and again. There are always those who say that we are not doing enough, and maybe there is a place for them on the sidelines enjoying a self-satisfied running commentary. But talk is cheap, and we are in the business of real action here, not words. Labor is right now delivering the projects, investment and reform Victoria needs to achieve our state’s ambitious target of halving emissions by 2030 and reaching net zero by 2050. And it is better than that, because we smashed our 2020 target out of the park, and we are not slowing down.

As the member for Northcote I have been proud to push for strong climate policies and reducing our reliance on fossil fuels. I am not afraid to say here in this house that I support us smashing our targets once more, and I will do everything in my power to ensure that we do. My community knows and understands the urgency of climate change. We know there is work to do, and fast. Across kitchen tables, in classrooms and on the street I hear the inner north loud and clear, and I echo their voices: we want to see a Victoria that moves away from the consume-and-discard model and instead elevates localised, re-usable and sustainable ways of living. We want to see a Victoria that treads lightly on our environment, recognising the lands and waters that sustain us, nurturing and honouring them. We want to give hope to our children that the world we are leaving them will be better than the one we inherited, and we can only do that if we act with clarity, with resolve and with dexterity.

At the national level we have been in the abyss, enduring a decade of decline marked by climate wars that have set our country back a devastating amount. I will not linger on the obstinance and vanity from some quarters which led to those dismal years, because thankfully, they are past us. The Albanese Labor government will now pick up those pieces and work to deliver unity, not division, progress, not protest. For Victoria that means a partner in Canberra committed to progressing climate action at speed and at scale. Critically, in line with our Labor values, we are putting people at the heart of this transition, a just transition. We are supporting workers into new industries and creating new clean jobs. We are supporting Victorians with rebates and lower power bills. Transition should not be reserved for the privileged few, and we remain committed to these values. We are bringing Victorians with us. It is the only way we will get this done.

Over two-thirds of our emissions are coming from the energy sector, so changing the ways we create and use energy is key. Victoria is already delivering the largest annual increase in renewable energy generation of any state ever. There are big batteries. There are neighbourhood batteries. There are solar and wind farms at scale. There is solar on hundreds of thousands of roofs. By 2025 every school, hospital, government building and our public transport network will be 100 per cent renewable. Then there is our offshore wind revolution. It is hard to wrap your head around how big this one is, but by 2040 offshore wind will exceed 9 gigawatts, basically setting us up to power our entire state with renewables. Friends of the Earth has said that this policy is a game changer for climate and jobs, and they are spot-on, but decarbonising our energy generation is only one part of the puzzle. We also need to change the way that we use power. The VEU program is pivotal to this work, and this bill strengthens it. Once a relatively straightforward upgrades program, it is now moving to support a wider range of more complex technologies, and we need to ensure that compliance and enforcement keeps up with this change.

The bill makes sure the Essential Services Commission has the powers and tools it needs to effectively manage the program and protect consumers. This includes pursuing enforcement where necessary and enforcing the new code of conduct for the program. The code sets out the minimum standards that consumers should expect from people and businesses delivering discounted products and services through the program. It includes protections for Victorians when it comes to marketing and sales, contracts, communication, installation, after-sale follow-up and consumer dispute resolution. These protections are in step with industry codes and Australian Consumer Law. New offences, enforcement tools and greater flexibility will be introduced, balanced by greater accountability for the commission. Penalties will now apply not just to businesses providing services but to subcontractors as well. The bill will also ensure that the accredited providers are appropriately qualified, and they will need to annually renew their accreditation and undertake independent assurance audits. The commission will also be able to reject applications to renew an accreditation and to revoke, suspend or impose conditions on accreditations. Together these changes will ensure the VEU has the framework in place to deliver on the program’s goals, improve the program’s transparency, protect consumers and maintain public trust in this important initiative.

The VEU has now helped more than 2 million households and businesses cut bills and reduce emissions to the tune of 73 million tonnes since 2009. This is the equivalent of taking 22 million cars off the road for a year. In Darebin more than 52 000 homes and 3000 businesses have participated in the program since it began. That is more than 161 energy efficiency upgrades. This includes 13 000 homes with fewer cold draughts this winter thanks to installing weather sealing, more than 13 000 homes with low-flow showerheads saving money on hot water, and more than 10 000 homes have installed in-home displays to help them better track energy use. Local businesses are also benefiting. In Thornbury 3 Ravens Brewery had 130 lights upgraded, Melbourne Bushfood in Fairfield had a split system installed and 38 LEDs fitted, and Encore Music Distributors in Alphington changed 133 lights. Together these three businesses alone are now saving 35 000 kilowatt-hours of electricity and $8650 a year.

But we are not done yet. We are also strengthening the program, adding new activities and phasing out incentives for all residential gas products. That is something I have been really proud to work on with my local environmental group Darebin Climate Action Now. We pushed for this in the Parliament and with the minister, and it has now been achieved, so we are very, very happy about that. I want to thank the minister for her support on that. I also want to thank DCAN, and we are also excited about the gas substitution road map and our shared vision for the future of energy efficiency in this state.

Talk is cheap; real change is hard. It takes ambition. It takes work. Real change is what Labor is interested in delivering. It is what I am interested in delivering, whether that be ambitious statewide targets or tangible local projects. Together I and my community have pushed to secure improvements like recent changes to the VEU, protecting our local waterways, funding for local sustainability projects and big gains in residential energy efficiency. This bill builds on that work. I commend it, and I commend Labor’s real action to secure a clean energy future for this state.

Mr McCURDY (Ovens Valley) (11:05): Deputy Speaker, before I start my contribution and before you leave the chair can I congratulate you on being appointed Deputy Speaker, and I congratulate the Speaker in this house. It is a privilege to be in that position. It was not lost on me yesterday that the condolence motion was a very difficult day for both you and the Speaker; congratulations on the way you both handled it. It was a difficult day. So congratulations; well done.

Now, onto the bill—you can leave now, Deputy Speaker; I have given you enough of a wrap-up. This bill is clearly an amendment that is a direct result of the rorting of the Victorian energy upgrades scheme, with the dodgy providers profiting millions of dollars from the taxpayer. And we know that this government needs to lead by example by cleaning up its own act, certainly when it comes to rorting. Then it can start to deal with the poorly vetted providers that facilitate these upgrades. I continue to have residents within the Ovens Valley contacting my office about different energy upgrades, concerned about whether they are rorts or scams or what they are, and I think this bill goes some way to starting to clean this up, but there is certainly more that we can do.

These scammers or rorters do give a bad name to the genuine local businesses that we have—and every community has got them, whether you are in metro Melbourne or whether you are in regional Victoria like we are. They do give a bad name to the genuine businesses that are doing the energy upgrades with energy-saving lights or fridges or whatever it might be. Some of these programs are excellent programs provided there is due diligence done to make sure that the scheme is not just a rip-off. There needs to be a proper education process, an awareness campaign that helps people to understand that these schemes are genuine and which ones are and which ones are not so they can have faith in the various schemes. But, as I say, when the government is up to its armpits in its own rorts I can see why they would be reluctant to be the pot calling the kettle black.

That being said, I am pleased to see the bill introducing a test to determine a fit and proper person. From my understanding and discussions with providers, that is the key. We need to ensure that those who are rolling out these schemes have a track record, have gone through a process to ensure that they are fit and proper people to conduct them, not people who have just come in with the wind and will blow out just as quickly. When you have got a business that you rely on, a local business that you call for repairs or for a tradie or someone like that, you rely on the fact that they may want a job again somewhere in the future and they are going to do their best to do the right thing. But with some of these schemes, obviously there is no need for them to do the right thing, because it is one hit. It is a sugar hit; they will get their energy certificates and they will move on. So I think it is a very good start to make sure that we get this fit and proper person test.

Clause 9 of the bill inserts a new section into the Victorian Energy Efficiency Target Act 2007 which will help to clean up the people and the body corporates who can apply to be an accredited person, like I was saying a moment ago. New section 10B will cover the fit and proper person test, hopefully ruling out any groups that have abused the system previously. There have been plenty of systems over the many years—you know, pink batts—and schemes we can talk about that started with good intention and ended up in a disaster. I just think it is probably well overdue that this fit and proper person test comes into place to make sure that those who are rolling out these systems can be trusted. We hear of so many examples right across Victoria about these people. Section 10C is designed to cover who is competent and capable. The intention is to ensure that people providing the services have the necessary skills and qualifications. These reforms are a step in the right direction aimed at stopping the system being abused, as I said, and at ensuring that regional Victorians are able to benefit from honest work.

I have had one gentleman contact my office—I have had various people contact my office, but one gentleman last week talked about the lighting upgrade. He was approached about wanting to get his lights upgraded. He was not sure, and then they asked him to send through some photos for them, so he did. He sent through the photos, and then he never heard from them again. One can only assume, and I do not know for a fact, that that particular business could then go and claim the rebates, claim the certificates and never have done the work in the first place.

To me it sounds like it was not a difficult threshold, it was not a high threshold. This is where people started to lose faith in the system. Of course bad news travels faster than good news. As people started to talk about this system all of a sudden our phones went mad with the amount of people ringing up saying, ‘I’ve just had someone call me about a fridge or call me about a light system upgrade; is it a scam or is it a genuine provider?’. For the benefit of both local MPs and those who are charged with trying to oversee some of these situations, it gives us the opportunity to know who is a scam and who is genuine, and we can provide support for these people. As all the MPs know in here, you have got to be very careful about giving advice to people when they ring about someone who might be a scammer. We need to be careful to cover our back and ensure that we are not giving them the wrong information. As I said, it is providers like that that give a bad name to the legitimate accredited person. They have got every intention of doing the right thing by the customer, but it does make the customer very sceptical. I also note that because many of these providers are only set up to roll out the energy upgrades, as I said before, they do not seem to have the same concern about follow-up work that might be coming into the future, because it is the one-off sugar hit where they will get their certificates and they will move on.

The rest of part 2 of this bill outlines other general amendments to tidy up and implement new requirements for those seeking accreditation, including the disclosure of any adverse information on a provider’s application; again a good step forward to make sure that those people applying for accreditation have got a reputation that is suitable for this. This new test and additional amendments will hopefully see those who are exploiting the system purged and prevent similar circumstances from happening again. There will always be dodgy operators around somewhere, but this is a significant step forward to try and assist that.

Part 3 inserts section 7A, which will see the Essential Services Commission (ESC) publish and maintain a record of the holding, transfer and surrender of all certificates. Again, transparency is what we have been looking for for some time, and this is a step towards greater transparency and accountability for this system. Clauses 23 and 24 are specifically about restricting the transfer of certificates from any person to a person who holds a Victorian energy efficiency target (VEET) scheme registry account. This limits the ability of holders to transfer certificates to private individuals or other companies who are not in the scheme and further exploit and rort the price of the carbon credits, so hopefully that will solve that problem. The rest of this part of the bill is dedicated towards greater transparency and other amendments, including penalties for those found in breach of the changes rather than a slap on the wrist with a wet lettuce. I know for a fact that some of these providers are wanting to exit the industry because they are sick and tired of the dodgy providers that make life difficult for them. It seems like the ones doing the right thing are the ones continuing to get audited, and the ones that are dodgy just seem to slip through the cracks.

Part 4 extends the VEET scheme and its targets by one year from January 2030 to January 2031, and clause 35 inserts into the VEET act new sections 14G and 14H, which give the ESC the power to implement a code of conduct for providers and also outline the penalties for non-compliance. This is crucial to ensuring that these providers are held to account for their actions or omissions and ensuring that they are held to the same standard that companies and businesses anywhere else in our communities are held to. As I said, some, because they have got a shopfront in a local town or a local suburb, need to be accountable. The ones who you call up on the phone, do a deal and move on, that makes it much easier for them to avoid the scrutiny that a normal business on your corner faces.

These governance provisions should have been implemented a long time ago. We know that, and it took all these fridges getting delivered at the end of the financial year to expose the shortcomings of this scheme. Although we are genuinely trying to make sure that we can reduce our carbon footprint, which is what everybody wants to do, it is just sad that it took so long for this to happen. Let us hope that these recommendations and these changes are implemented very quickly. We look to see that these schemes then get managed in a better system to make sure that the dodgy operators are, as I said, purged from the industry, because there are many operators out there who are genuine, good operators who can make sure that these certificates go through and we can reduce our carbon footprint. That being said, these changes are long overdue, and it is well time to see them brought before this place.

Ms ADDISON (Wendouree) (11:15): I am very pleased to rise in support of the Victorian Energy Efficiency Target Amendment Bill 2022, which will further reinforce and improve the highly successful Victorian energy upgrades (VEU) program. I am delighted to be following on from the member for Northcote, who made an outstanding contribution. I know that climate action is very important to the member for Northcote. She is such a strong voice on this, shows such great leadership and very much amplifies the voice of the residents of Northcote in her electorate. She is doing such an excellent job. Referring to the opposition lead speaker, the member for Caulfield, it was very, very difficult to be lectured by him on behalf of the Liberal-Nationals about action against climate change because we only really have to look at the federal election results to see what the community in Victoria think about the Liberal-Nationals approach to climate change. We are a party of action on this. We are true believers when it comes to the need for climate action. We will continue to work hard. We are fair dinkum about this, and that is something that I am very proud of.

I do want to acknowledge the incredible work over a very long time of our Minister for Energy and Minister for Environment and Climate Action. I notice one of her outstanding advisers, Dean Rizzetti, is in the chamber at the moment. The work that they are doing to make Victoria safer and cleaner and better is just extraordinary. I would also like to thank the Department of Environment, Land, Water and Planning for the work it does and for bringing this bill to the house, because this is making substantial change and I am very, very pleased to be a part of it.

It is so important when you are introducing energy efficiency targets and amending bills that you really do bring your stakeholders along with you. We want this to be something that is embraced by the sector, and that is why extensive stakeholder consultation has occurred with the Victorian energy upgrade providers, with businesses within the energy efficiency industry, with the consumer peak bodies and with our energy retailers. More than 80 organisations and individuals were engaged during the public consultation, and that is just really great work. That is what we want. This is legislation that has gone out to the community, gone out to the sector, gone out to the industries and gone out to businesses, and I note and welcome that there was broad stakeholder support for the options presented. Also, the consultation will not stop; it will continue as the bill is implemented. The department and the Essential Services Commission are already supporting our businesses and consumers with the implementation of the new VEU code of conduct. It is this Victorian energy upgrades program which is such an integral component of this government’s commitment to energy efficiency. The work is vital. We have a collective responsibility to address our impact on the environment and a moral obligation to leave a better Victoria for generations to come.

As I said, the opposition are late to the party on this and have no credibility, and talk is cheap. You compare that to what we are doing, and I could not be prouder to be a member of a government which is leading the nation on setting targets to reduce emissions by 50 per cent by 2030, with plans to reach net zero by 2050. We are taking action to achieve these targets, and we have runs on the board already. We have surpassed our initial aim of 25 per cent renewable energy by 2020, with 32 per cent renewable energy last year—an incredible reflection of what we are doing. The levers that we control we are pulling, and we are getting the results—32 per cent renewable energy last year.

We are also the only state in the country with offshore wind targets, complemented by investments of almost $40 million to support the establishment of three offshore wind farms. The member for Northcote said it, and it is worth repeating some of the incredible things that we are doing when we are investing in storing renewable energy—I am thrilled that the minister has just walked into the chamber—whether it be our big batteries, whether it be our neighbourhood batteries, whether it be batteries within homes, as well as supporting Victorian households, businesses and public buildings to install solar. We are helping low-income households to remove outdated heaters and replace them with highly efficient split systems. We have already published the gas substitution road map detailing our approach to substituting fossil gas. But there is more. We are implementing these energy efficiency policies and programs. We are creating jobs and driving down bills.

I am immensely proud to represent the Ballarat community in this place because the Ballarat community is taking action on the energy we use. I would like to acknowledge BREAZE, which is Ballarat Renewable Energy and Zero Emissions, an incredible local group of energetic, forward-thinking people who are organising more resilient and sustainable ways of living on our patch of the planet. This is not something new to Ballarat. BREAZE was formed back in 2006 when they held a rally, Walk Against Warming, at Lake Wendouree. Some people might remember back in 2006 that our beautiful Lake Wendouree, which is the heart of my electorate, dried up because of drought. It dried up because of climate change. So the people of Ballarat do not need to be convinced that climate change is real; they have lived it. They have seen the impact of drought and they want to take action, and BREAZE is one of the great organisations in Ballarat. As a government we are partnering with them to deliver solar panels at a number of Ballarat not-for-profit organisations, community sport venues and social housing.

When we invest in these projects and we partner with organisations, not-for-profit organisations like BREAZE, it means that local jobs are created and local businesses are supported. It is such a great thing to do because our local organisations can then instead of paying energy bills invest in more services for the community. The Ballarat table tennis centre is now not paying the same energy bills. They can buy more table tennis tables. They can do more. They can put back more into membership, which is a great outcome. So it is a really, really good outcome what we are doing, and we are saving the planet—just extraordinary.

The people of Ballarat get it. They have enthusiastically implemented energy-saving practices, with 3500 solar home installations completed as well as 65 businesses taking advantage of the Solar for Business program launched last year. I am very proud that we have the sixth-highest uptake of any Victorian LGA, and I hope to see us climb that leaderboard even more. Fifty-six zero-emission vehicle subsidies have been paid to Ballarat residents as well, while 280 local households have had an application approved under this government’s home heating and cooling upgrade program. Last, but certainly not least, we have seen a huge uptake recently of the bill-busting $250 power saving bonus, with many applicants going on to check and improve their power plans through the Victorian Energy Compare website.

This bill before us today will assist Victorian households and businesses seeking to reduce their energy usage by strengthening the flagship Victorian energy upgrades program. The VEU makes available to homes and businesses a huge variety of discounted energy-efficient upgrades and products. It has supported lighting upgrades, low-flow shower roses and weather sealing—weather sealing in Ballarat is so important; we have so many heritage homes, homes built of weatherboard and stuff like that, so weather sealing is a really important issue for my community—energy monitoring displays, high-efficiency devices and much more. The benefits are manifold through savings on power bills—$120 annually on average for participating households and a whopping $3700 annually for the average participating business—as well as through driving down energy demand and therefore costs for all. It supports 2200 jobs statewide and has reduced emissions by a massive 73 million tonnes since 2009.

I note with particular interest that in the City of Ballarat LGA 38 000 households and 2800 businesses have participated in this program to date. Especially pertinent for Ballarat at this time of year is that 8000 local homes have combated cold draughts by installing weather sealing with the support of the VEU. This is an excellent amendment; I recommend it to the house. This is about us showing our colours. We support action on climate change.

Dr READ (Brunswick) (11:25): Today I speak on the Victorian Energy Efficiency Target Amendment Bill 2022. This bill will change the legislation around the Victorian energy upgrades program, granting more regulatory powers to the Essential Services Commission in order to better protect consumers and, importantly, to prevent non-compliance by providers. We know that improving energy efficiency across Victoria is vital to reducing our emissions, vital to getting off coal and gas and vital to addressing climate change. The Greens are strong advocates for improved energy efficiency. Anything that saves money and makes our homes less like glorified tents is a positive, and that is without even getting to the climate benefits.

While the Greens will be supporting the bill, I want to raise some of the opportunities for Victoria to do more and go further and faster in our efforts to improve energy efficiency. First, we are concerned that currently Victoria’s energy upgrades program is actively supporting and providing incentives for homes and businesses to install new gas appliances. This is deeply troubling and needs to be addressed urgently. I can see that Labor recognises this problem and has committed to changes as part of the gas substitution road map. But instead of making the change as soon as possible, in this term of government, Labor appears to be delaying this change for possibly years. In the meantime—

A member interjected.

Dr READ: I just heard ‘in March’, which is splendid. How many more homes will we be subsidising to lock themselves in to relying on expensive and polluting fossil gas appliances? How can this government justify subsidising the purchase of fossil fuel-powered heaters in 2022? The Labor government have known about this issue and reassured the Greens and stakeholders that they will fix it. I have just heard from the minister that that will be in March. It could be possibly done tomorrow.

Fossil gas makes up 17 per cent of Victoria’s climate pollution, and that is why the Greens are pushing to get 1 million homes off gas in the next six years. Not only would this tackle climate change, it would reduce household energy costs and help protect the health of Victorians. Using gas in our homes accounts for up to 12 per cent of childhood asthma, a significant price to pay for a fossil fuel that is both expensive and damaging to the environment. It is simply not worth it.

Another concern the Greens have about the energy upgrades scheme is that it still does not include insulation. Retrofitting homes so that they are properly insulated is one of the best and cheapest ways to make them warm and to improve energy efficiency, yet it continues to be excluded, presumably due to concerns about safety. I understand the hesitancy after what happened with the federal pink batts scheme, but that was over a decade ago. We should learn from policy that goes wrong, but there is no need to throw the baby out with the bathwater and abandon good and necessary policy out of atavistic fear. I have heard from a number of stakeholders about this bill and the energy upgrades scheme, and they all agree that we urgently need to get insulation included. The Greens have been pushing Labor on this for some years, and it was part of our election platform in 2018. The need is now more urgent than it was then. Energy costs are skyrocketing, and the climate crisis getting on, so for goodness sake, can we please just get insulation recognised in the energy upgrades program?

We have also heard from providers, consumers and industry experts that there is mixed comprehension and understanding of how the energy upgrades program works. For many consumers in particular who lack the working knowledge of the legislation and industry under which this program is run, the program is complex. I know that this government is keen to promote this program, so in the interests of acting on climate change I urge it to simplify the program wherever possible so that we can see increased uptake. We have also heard from stakeholders that for some vital but expensive energy efficiency upgrades the certificates allocated are not enough of an incentive for consumers. I urge the government to look at topping these up with further financial incentives to consumers to ensure Victoria goes further and faster in making our homes more energy efficient.

Lastly, having consulted again with stakeholders, we have heard from several sources that increased resourcing within the Department of Environment, Land, Water and Planning could improve the performance of this program. If the government worked to increase capacity within the relevant teams, this would maximise uptake of the program. It would also give these teams the capacity to quickly address any issues that may arise, like we saw recently with unwanted fridges being delivered.

Anything we can do to reduce demand for gas, particularly household demand, will save us from spending money on importing more gas in the coming years. Things like building a gas import terminal at Corio Bay should be unnecessary, because there is so much scope for demand reduction that we should be able to save consumers a lot on household gas bills with programs like this and with further direct incentives rather than spending money importing gas. The problem with importing gas is that increasingly it will be fracked gas from places like the Beetaloo Basin, and we know that gas obtained from fracking is about as polluting as coal because of the increased fugitive emissions and because methane is a far more potent greenhouse gas than CO₂. So programs like this are worth fixing where they are broken, strengthening where they are not being taken up sufficiently, simplifying so that consumers can understand them and complementing with energy efficiency so that they really do bring down emissions, reduce demand for gas and reduce the need to import more of it.

I will finish by urging the government to build on what is already good with this scheme, fix the gaps and remove the perverse incentives that are locking in gas. Doing so would be a win for climate and for householders who are confronting rising gas bills.

Mr J BULL (Sunbury) (11:32): I am delighted this morning to have the opportunity to contribute to debate on the Victorian Energy Efficiency Target Amendment Bill 2022. We on this side of the house are a progressive government, a reforming government and a government that tackles the big challenges that our community and our society face head-on. We know and we understand that when it comes to energy, our environment and climate change, to simply do nothing in this space has never been an option. It is why at every chance and every opportunity the Andrews Labor government has invested in renewable energy, in new technologies and in the very best of science for the betterment of the planet. Of course, as members have spoken about this morning and as members know, that investment needs to be continuous, it needs to be consistent and it needs to be sustained as new technologies are developed and we chart the course of science to continue to work with the very best of technologies as we go forward.

I do not plan in my contribution to spend too much time on those opposite, but what we have heard this morning from the shadow minister is a call—a call that has not been common in my time in this place and I am sure for others as well—to take the politics out of this debate. Now, what was extraordinary about that contribution was that not only do we on this side of the house wholeheartedly agree with that but what unfortunately we have seen for the best part of a decade from the former Liberal-National coalition government has been an entirely political debate. What this country has needed, not just for that decade but for decades before, is an environmental policy, an energy policy, that meets the needs of consumers to drive down the price of energy but of course is able to tackle the very significant and very concerning impacts of climate change.

Now, what we saw during the most recent federal election was a change in that. I know that the member for Northcote spoke extremely well in this space, but what we have been able to do on this side of the house since the very first time we came to office and had the opportunity to sit on the Treasury benches is develop a consistent approach to our energy policy and our environment and deliver the biggest investments in this space anywhere in the nation. That is something I know as a local member I am extremely proud of, and it is something I know that many members on this side of the house are incredibly proud of as well—clear, consistent, constructive policy that works hard in this space.

We know that our state is proud to be leading the country in delivering climate action and transitioning to renewable energy. We know that we have set nation-leading targets to reduce emissions by 50 per cent by 2030 and have delivered the largest annual increase in renewable generation of any state ever. We have heard from other members of the house we are of course the home of the Big Battery, the largest big battery in the Southern Hemisphere, and a number of other batteries which are spread across our state. We know and we have heard about the investment in offshore wind targets. We are leading the country, bringing online 2 gigawatts of offshore wind by 2032, 4 gigawatts by 2035 and 9 gigawatts by 2040. We know that that support for new technologies creates thousands of jobs while cutting power bills and slashing emissions. These are tangible, practical and important steps that are taken.

This piece of legislation before the house complements the whole range of those investments that this government has been very proud to not just bring through the house but bring through local communities right across the state. Of course we know that we need to continually invest in this space, but we know the excitement, the enthusiasm and the interest from local communities when we move around our local communities as local members. There is significant interest from Victorians, from the Victorian community, about solar energy and about what we can do with new technologies. This is something that I know that many members have spoken about in the house before, and it is something we will continue to make sure that in this space we are bringing forward the best of policies.

We know that the Victorian energy upgrade program is our flagship energy efficiency program. It has delivered incredible outcomes, helping more than 2 million households and businesses to cut their bills, saving the average household $120 and the average business $3700 per year. It supports more than 2200 jobs across the state, both in metropolitan and in regional Victoria. It has also had a huge impact on carbon emissions, reducing those emissions by over 73 million tonnes since 2009. That is the equivalent of taking 22 million cars off the road for a year. The program is continuing to grow. There are ambitious targets to reduce emissions through the program. As a result, we are strengthening consumer protections for the program, which is the fundamental purpose of this bill before the house, by ensuring that the Essential Services Commission can enforce the new code of conduct regulating all businesses working in the program, including subcontractors, and giving them the power to take strong action when it comes to compliance. We know of course that this program has been incredibly important and delivered substantial benefits to Victorians. The program offers discounted products to help make homes and businesses more energy efficient—whether that is with, for example, in-home display units, lighting, showerheads, heating and cooling or hot-water systems—and I know that other members have spoken at length about those areas. In fact every household is estimated to save $150 and every business to save $870 a year over the next 10 years, thanks to the VEU.

We know with technologies like this that it is about the investments, the initiatives and the protections that can be put in place, not just through this piece of legislation but through that whole raft of investments. Whether it be within state budgets or investments that come directly to local communities, we know that these investments are incredibly important for people’s bills. I did hear other members mention this before, but the program commenced of course in 2009 and has supported more than 2 million residential lighting upgrades and installed more than 530 low-flow showers; more than 398 000 homes have been weather sealed to reduce draught; 365 000 homes have an in-home display unit to better monitor their energy use; 120 000 businesses have installed energy-efficient lighting and a range of high-efficiency appliances, including 23 000 high-efficiency televisions and 900 high-efficiency pool pumps; and more than 230 businesses have been approved to undertake some of those smaller upgrades that are needed as the program rolls out.

We know—and I will conclude my remarks by tying them back to where we started—this is a government that will continue to invest and make sure that we lean into tackling those significant challenges, those big challenges that we know are presented through climate change, but also the challenge of the cost of living within local communities, whether that be in your community, Acting Speaker Connolly, or in mine or in any community right across the state. Whether it is for the city or the suburbs or for the wonderful people in rural and regional Victoria, making sure we are providing those supports is critically important. We know of course that there are a range of initiatives that this government has brought before the house, both within budgets and outside of budgetary cycles—whether that be the power saving bonus or whether that be the investment in those renewable technologies for the home, for business or for large-scale manufacturing and industry.

We on this side of the house will continue to invest in clean, renewable energy that drives down energy prices for consumers—an energy that is good for the planet. The Andrews Labor government is committed to this. We are not just committed in the sense of words, we are committed in the sense of investment, and for each and every Victorian that is what matters. We are making sure that we are supporting them to deal with the challenges that household power bills present but of course also working with science and working with industry to drive down the cost of energy and invest in those renewable technologies. I am proud to commend the bill to the house.

Mr BRAYNE (Nepean) (11:42): I also rise today to speak on the Victorian Energy Efficiency Target Amendment Bill 2022. Obviously this is a hugely important bill for everyone in the Parliament and of course for many of the people on the Mornington Peninsula, who frequently rank the environment and our future energy needs and demands as some of their most important issues. In fact I remember speaking to a local who listed buses as their most important issue on the Mornington Peninsula. I spoke to her about the huge improvements we have made to buses on the Mornington Peninsula, and after having this conversation, despite her seeming quite satisfied, she still responded, ‘But when are they going to be completely electric?’. This issue is also a hugely important one for me. I strongly believe that a key part of our energy solution must be the efficiency of our devices and our modes of transport coupled with the introduction of newer technologies such as solar panels—newer, although they have been around since the 1970s, of course. It is important to note the efficiency of these technologies has also ramped up over time. The efficiency of solar panels is vastly better now than in the 1970s, as you can imagine.

This Victorian government is committed to taking strong climate action and transitioning to renewable energy. It is this government that has set nation-leading targets to reduce emissions by 50 per cent by 2030 and has delivered the largest annual increase in renewable energy generation of any state. Whether it is supporting new energy technologies, being home to the largest big battery in the Southern Hemisphere, or having the most ambitious offshore wind targets in the country, Victoria is leading the way on climate action. Storage and capacity—these are critical. Renewable energy is the cheapest form of energy. It is the only form of energy that big businesses, shareholders and investors are actually putting their money in. Do not take a politician’s word for it, take their word for it.

I also note the member for Caulfield’s comments and his suggestion that we should accept a unity ticket on this issue of renewable energy and the environment. Well, I would genuinely love to have a unity ticket on this issue, but I just do not believe it. I just do not believe the Liberals now care about this issue. Look at the last election in 2018. The Liberal’s election promise was a pledge to scrap the emissions reduction target and the renewable energy target. What changed? They lost an election. Is that the only change that has taken place? I do not believe a genuine change of heart has happened within the Liberal Party when it comes to this issue. When I do believe that, I will be happy to declare there is a unity ticket.

In addition, the Victorian energy upgrades program is this government’s flagship energy efficiency program, which is helping Victorians to reduce the amount of energy they use every day. The program offers discounted products to help make homes and businesses more energy efficient. Whether it is home display units, lighting, showerheads, heating and cooling or hot water systems, the VEU is helping Victorians to lower their carbon footprint, and Victorians and Mornington Peninsula folks have shown that they are keen to do so. More than 2 million households and businesses have participated in the program, not only becoming more energy efficient but saving money on their power bills. For example, the average household has saved $120 and the average business $3700 each year. What is more, every single Victorian household and business benefits from this program regardless of whether they take part in the program, because the VEU reduces the amount of energy infrastructure we need to build in the first place. In fact every household is estimated to save $150 with these measures over the next 10 years thanks to this flagship program.

The VEU is also having a significant impact on our carbon emissions, reducing emissions by 73 million tons since 2009. That is the equivalent of taking 22 million cars off the road for a year. And thanks to this Victorian government’s ambitious targets that were set for the program, between 2022 and 2025 the VEU will deliver an additional 28 million tons of emissions reductions and drive a further $1.3 billion of investment in energy efficiency.

These are real, tangible savings that are helping real people, all thanks to a program that is having a real impact in reducing our state’s emissions. You only need to look at the numbers to see how successful this program has been. Since 2009 the VEU has supported more than 2 million residential lighting upgrades and more than 530 000 low-flow shower roses. More than 398 000 homes have been weather sealed to reduce draughts. What is more, 365 000 homes in Victoria now have an in-home display unit to better monitor their energy use; almost 120 000 businesses have installed energy-efficient lighting; a range of high-efficiency appliances have been installed, including 23 000 high-efficiency televisions and nearly 900 high-efficiency pool pumps; and more than 230 businesses have been approved to undertake bespoke upgrades. Across our state the VEU is delivering real upgrades for households, and Victorians have done their part in helping us all become energy efficient.

I know that across the Mornington Peninsula more than 62 000 households and 3000 businesses have participated since the program began. That is more than 157 000 energy efficiency upgrades on the Mornington Peninsula alone. This means that more than 8000 homes on the peninsula have fewer cold draughts this winter due to installing weather sealing with support from the program. More than 12 000 homes installed low-flow showerheads through the program, saving them money on hot water; more than 8000 homes have installed in-home displays to help them better track and manage their energy use; and more than 400 homes on the Mornington Peninsula installed energy-efficient heating.

The Mornington Peninsula is home to many environmentally conscious people who are passionate about reducing their carbon footprint and protecting their environment. That is why they came together to oppose the AGL gas pipeline in Crib Point. Their efforts resulted in the project being rejected by this government. That is why they came together, again, to oppose the proposed quarry at Arthurs Seat that would have had a devastating effect on our natural environment. Time after time people across the Mornington Peninsula have demonstrated their commitment to the environment. I am proud of the number of locals who have participated in this program.

The VEU has delivered incredible outcomes, and the program has continued to grow, with the program now shifting from supporting straightforward upgrades to supporting a wide range of technologies, such as reverse-cycle air conditioners, energy monitoring tools and heat pumps. As such, as is the case with any successful program, it is vital the compliance and enforcement framework keeps pace with these exciting changes. That is why this government is strengthening protections for this program with this bill, helping to ensure that the Essential Services Commission (ESC) has the powers they need to manage the VEU and protect its consumers.

Some of the specifics of the legislation: this bill will give the ESC the power to effectively administer the scheme, monitor compliance of companies working in the program and pursue enforcement where necessary to protect Victorian consumers and ensure the program meets its goals. The bill will also ensure that the accredited providers are appropriately qualified through requirements to demonstrate they are a fit and proper person and a competent and capable person. Providers will also need to annually renew their accreditation and undertake independent assurance audits. The ESC will also be able to reject applications to renew an accreditation, as well as revoke, suspend or impose conditions on accreditations. Protecting consumers who are doing their bit to reduce their carbon footprint is so important. That is why this bill will strengthen consumer protections by introducing penalties for all businesses providing services under the program. This includes subcontracted telemarketers or installers rather than just accredited providers.

The combination of these changes will strengthen the ESC’s powers to enforce a new code of conduct that has been created for businesses working in the program. This code of conduct sets out the minimum standards that consumers should expect from people and businesses delivering products and services through the program and is designed to promote good conduct and specific consumer protections. The code includes protections for Victorians when it comes to marketing and sales, contracts, communication, installation, after-sales follow-up and customer dispute resolution. The code also applies to everyone involved in delivering upgrades under the VEU program, including accredited persons and their contractors, independent or subcontracted; installers; and any other service provider involved in delivering upgrades. The code covers all points of a consumer’s Victorian energy upgrades journey, including marketing lead generation, sales contracting, installation and after-sales processes and dispute resolution. The ESC is already using the code of conduct and educating VEU companies on the new expectations; however, current legislation limits their capacity to enforce the code. As such this legislation will allow the government to fully implement the code of conduct.

Ensuring that Victorians are protected while participating in this program is so important and will give households and businesses peace of mind that they will be protected when doing their bit to reduce emissions. Overall the bill will empower the ESC to take strong action to ensure compliance by introducing new offences, enforcement tools and greater flexibility. The ESC’s enhanced powers will also be balanced by greater accountability, ensuring that consumers and stakeholders can be confident this important program is operated by a strong regulator. This government has led the way in taking climate action and reducing our emissions. Whether it is our nation-leading targets to reduce emissions or the Victorian energy offer program that has helped millions of Victorians to reduce their carbon footprint and save money on their power bills, we are committed to transition to renewable energy. Again, it is the cheapest form of energy. This bill is another step towards climate action and supporting Victorians to reduce their carbon footprints. All governments have a responsibility not only to tackle climate change themselves but to help households and businesses do their part. That is what this bill does, all while ensuring that Victorians are protected for doing the right thing. I am proud to support this legislation.

Ms CRUGNALE (Bass) (11:52): I rise to speak on the Victorian Energy Efficiency Target Amendment Bill 2022. This important bill comes at a time really when our community is demanding and is always deserving of transparency in how programs like the Victorian energy upgrades are rolled out and how they are regulated and how that regulation is applied. Before I begin on my contribution, I just want to mention that the member for Brunswick claimed it would take years and years and years to remove domestic gas from the VEU through our gas substitution road map. To correct the member here on the record and present the facts, the truth of it is the actual real date is March next year—and the member for Brunswick would know that. This is a key part of our ambitious gas substitution road map, and we are the only state to have done this vital work, and we are proud of the jobs it will create, the lower bills it will deliver and the way it will slash our emissions.

A member: Hear, hear!

Ms CRUGNALE: That’s right—hear, hear.

In my electorate office in Wonthaggi we have helped close to 1000 constituents apply for the $250 power saving bonus, including around 300—and rising quickly—just in this third round. This fantastic initiative has been a great help to my local community, and the discounts and rebates on energy saving and renewable energy products through the VEU program and Solar Homes program have also been a great help to my constituents. In fact one of my constituents who did the power saving bonus application and switched—I was quite taken aback really—will be saving $1500 a year.

Going into a little bit of detail, the VEU program currently provides a range of low- and no-cost energy saving options, such as low-flow showerheads, which we have already heard about, and draught sealing and lighting, and also provides subsidies for replacing major appliances such as hot-water systems and heating. The VEU is regulated by the Essential Services Commission (ESC), which is an independent regulator that promotes the long-term interests of Victorian consumers with respect to the price, quality and reliability of essential services, including the electricity and gas, water, local government and transport sectors. Their role in relation to the VEU program is to oversee compliance and performance reporting by energy retailers and accredited providers, thus bringing integrity and trust to the program in the eyes of the community.

My electorate of Bass covers three council areas—the Bass Coast shire, Cardinia council and the City of Casey—and the VEU program has proven to be incredibly popular in my electorate and has saved households and businesses a significant amount in the up-front costs of installation and ongoing annual savings on energy bills, given that the reduced demand lowers energy prices for Victorian energy consumers. In Bass Coast LGA alone more than 18 000 households and 1000 businesses have participated since the program began back in 2009. That is more than 48 000 energy efficiency upgrades. That is 1500 homes in the Bass Coast that will have fewer cold draughts this winter due to installing weather sealing with support from the program. That is 5500 homes that have installed low-flow showerheads through the program, saving them money on hot water.

In Cardinia more than 29 000 households and 1800 businesses have participated, and that is more than 79 000 energy-efficient upgrades. That is 4000 homes that are warmer, 6000 homes installing low-flow showerheads and more than 8000 homes installing in-home displays to help them better track and manage their energy use. Casey does have a big population, but it has got the highest uptake of this program in the state, with more than 94 000 households and 4000 businesses having participated since the program began. That is more than 320 000 energy upgrades, with more than 29 000 homes having again fewer cold draughts, more than 29 000 installing water-saving devices and more than 400 installing energy-efficient heating. They are also top of the pops with the Solar Homes program.

I also want to mention that we did announce a target to halve Victoria’s emissions by 2030 as part of our climate change strategy. Through the strategy we have a set of pledges to cut emissions across the Victorian economy, with plans covering areas such as energy, transport, agriculture, land use and waste. In the previous budget we announced $1.6 billion for clean energy, the largest investment in clean energy of any state ever. We have got an amazing minister who is dedicated to spearheading a climate change revolution literally across the grid, from the power saving bonus to Solar Homes to community energy hubs, neighbourhood batteries and big batteries and right through to offshore wind. Obviously there is the Energy Innovation Fund—we kickstarted three major offshore wind projects from Star of the South, Macquarie Group and Flotation Energy, all right off the South Gippsland and Bass Coast coastline. That funding to the tune of $40 million across the three has the potential to create 5600 jobs, bring in more than $18 billion in new investment and power around 3.6 million homes. We do not just kind of talk about stuff, we get on. We are very active in this space and are literally leading the nation. What is important with all these projects and programs is the opportunity to skill up a workforce, especially for our young people, and to reskill the existing workforce; the supply chain benefits; the creation of a new industry sector; and the potential gigawatts of reliable, renewable energy to power our homes and industries and be that clean energy capital of Australia. It is the clean energy revolution, literally, as I said, house by house, from community centre to football clubrooms and from big-scale solar farms right out to offshore wind.

I am really proud of my local community, who have embraced everything ‘clean energy’ with open arms. It is now our job as a government to ensure the trust and integrity of the program is unshakeable. This bill makes amendments to the Victorian Energy Efficiency Target Act 2007 to improve consumer protections and the operation of the Victorian energy upgrades program. Across 2019–20 more than 440 000 households and 23 000 businesses benefited from this program. It is noted that over this period the Essential Services Commission received 631 complaints from consumers on a range of matters. Although this is only a small percentage of the overall program participants, marketing-related complaints have been growing more broadly across industries, and consumers were often unable to resolve their concerns through avenues available at the time. In response to this the VEU code of conduct was introduced just recently, on 1 July 2022. This code of conduct sets out minimum standards consumers should expect across their journey with the VEU program, and this includes commonsense and general principles around good conduct and specific protections relating to marketing and sales, contracting and information provision, installation and after-sales processes and dispute resolution. This includes any activity relating to the promotion, sale or supply of the particular VEU program activity made in person, by telephone or online. The code requirements are consistent with similar industry codes, the bill and Australian consumer laws.

The bill before the house will strengthen the enforcement of this code of conduct and includes new offences for breaching the requirements outlined in the code of conduct, and these include the following: the manner and form in which prescribed activities may be promoted; engaging with electricity and gas consumers; the provision of information about prescribed activities, regulated actions and other matters; and dispute resolution processes in relation to a prescribed activity or regulated action. These reforms will ensure the benefits of the VEU program are delivered between 2022 and 2025, and this includes $1.3 billion in energy bill savings, 28 million tonnes of avoided greenhouse gas emissions and incentives for the majority of households in Victoria to install energy-saving products and services.

Giving the ESC the ability to instil strong consumer protections is vital. Ensuring there is a culture of compliance is paramount in making sure all Victorian households and businesses can participate in the program. The VEU is Victoria’s largest energy efficiency initiative, it is integral for our broader agenda for our clean and affordable energy system and we need to ensure that we can continue to deliver this for the community by ensuring its integrity and its benefit.

Ms KILKENNY (Carrum—Minister for Corrections, Minister for Youth Justice, Minister for Victim Support, Minister for Fishing and Boating) (12:02): I move:

That the debate be now adjourned.

Motion agreed to.

Ordered that debate be adjourned until later this day.