Thursday, 7 March 2024

State Electricity Commission Amendment Bill 2023

Second reading

Debate resumed on motion of Lily D’Ambrosio:

That this bill be now read a second time.

Danny O’Brien: On a point of order, Acting Speaker, I seek your guidance, if I may. I would perhaps like to get this on the record. I understand I have already spoken on this in the cognate debate, but I would point out to the house that the member for Footscray was on her feet speaking on the cognate debate prior to the 5 o’clock guillotining of the Constitution Amendment (SEC) Bill 2023, and at the conclusion of the vote on that the member for Footscray was able to continue to speak on the current bill, the State Electricity Commission Amendment Bill 2023. I am seeking guidance as to why others of us are not afforded the same opportunity by the house to speak fully on both bills.

The ACTING SPEAKER (Daniela De Martino): The member for Footscray’s contribution was interrupted by the guillotine, and she was afforded the remainder of the time.

Alison MARCHANT (Bellarine) (16:04): I rise to speak on the State Electricity Commission Amendment Bill 2023, and I think we could have called this bill the ‘SEC is back bill’. We are very excited. I heard the contributions yesterday. I heard fantastic contributions from this side of the house talking about the importance of this bill.

The transition we have to renewable energy is a really big part of that urgent need for collective action on climate change and against climate change. We are as a world at a critical juncture where decisions made today will profoundly impact the future generations that will come after us, and the evidence is obviously irrefutable. We are witnessing rising sea temperatures, extreme weather events, disappearing ecosystems and the consequences of inaction threatening not only our environment but also our economies, health and security.

One of the most effective ways to combat climate change is transitioning away from fossil fuels to renewable energy, and one of the most effective ways to combat energy security and the cost of power is to invest in the cheapest form of energy generation, which we know is renewables. The transition to renewables presents an unprecedented opportunity for innovation and job creation. We know that it is going to create thousands of jobs and economic growth, and by investing in renewable energy infrastructure we can create thousands of those new jobs and technology advancements and stimulate the economy at the same time.

However, this is all very easy to say. Words are great. But we also need action, and we need governments who are bold and ambitious. That is exactly what we are on this side of the house, and that is what we will be doing to see this transition. We are already leading the nation on many parts in this space. We are leading in that transition to renewables. We have more than tripled the share of renewables in power generation in just eight years. Renewables are very much backed by our own communities. Millions of Australians have put solar on their roofs. They are installing batteries and heat pumps, and they are looking for that energy efficiency in their home. That is a smart move. We all know that, and it is clear that that is a cheaper and cleaner future for our families and our households.

If families know to do that in their own households, it is pretty easy to see that bringing renewable infrastructure into the energy market will do the same and address those cost-of-living issues. We understand that households are facing pressures with the cost of living, and we continue to have initiatives to drive down those pressures. This is just one way that we can do that. By having government-owned energy back in government-owned hands we will see that investment going back into Victorians’ hands. On 14 November 2023 the SEC was declared a state-owned company under the State Owned Enterprises Act 1992. The Premier and Treasurer hold one share each in the SEC, and it will be a government-owned and government-controlled entity. Its first project is under construction, which is really good news for those bills and cost-of-living pressures which I have talked about, and it is going to be able to push that renewable energy into the system, putting downward pressure on wholesale prices and delivering benefits to Victorians. There is also construction of a huge battery, our first project, out in Melton powering over 200,000 homes, storing that excess energy from renewables in battery storage. We know that we need to continue to invest in our energy storage to put downward pressure, and we will continue to work on that.

As part of that transition though, excitingly, at the last election the government did commit to 100 ‍neighbourhood batteries, which is also part of the system reform and the system becoming more modern. I was really excited to be able to commit to a neighbourhood battery at the last election in Bellarine, in one of my local government areas, the Queenscliffe borough area, and that community had been advocating for a community battery or neighbourhood battery for a while. They have worked considerably hard over the last few years to develop a climate emergency response plan for the area, and the battery was part of that plan. They set ambitious targets at a local level by providing initiatives and actions that they want to undertake. They have gone through bulk solar buying programs, reducing single-use plastics, diverting food and garden waste from landfill and so much more. I would like to congratulate them on their work and their advocacy. They have done an incredible amount of work in this space, particularly led by a group called Queenscliffe Climate Action Now, a group that are really achieving some wonderful things that aim to not only protect our environment but leave our area cleaner and greener for our future generations. I am looking forward to seeing that project come to life very soon, that neighbourhood battery.

I have talked a little bit about the workforce that this opportunity allows us to grab hold of. I can see careers counsellors in schools saying to kids in the next few years, ‘Have you thought about working in the SEC?’ I am a mum of very early teenage kids, and I talk to a lot of other parents in the electorate who talk about what their career path for their children is – what is it that they will be looking for? We know that the jobs now might not be there in the future, but what are our future jobs for our kids? And I think this is an absolutely wonderful opportunity. To transition to do that work we will need a workforce, and we expect to create thousands of jobs. Part of that will be apprenticeships as well. To do that work does need some investment in our training and our commitment, and we are committed to establishing an SEC centre of training excellence and also encouraging schools and parents to look at engaging in the SEC as a career. Having careers nights in schools would be one example. As part of the budget, though, we also committed $12 million over three years to develop a business case for that SEC centre of training excellence, new renewable energy VET certificates and also the Victorian energy jobs plan. As I said, I can see the careers counsellors helping encourage students and school leavers to go into this field.

We understand that our households are feeling the pressures of cost of living, and I have talked a little bit about that. But there is a cost-of-living pain in various forms. We will see, as we have more recently, fires, heatwaves, droughts, floods and cyclones – extreme weather events which are coming our way unless we do something now, and we know that transitioning to renewables is part of that solution. As someone who has come from a farming background and someone who has experienced, I suppose, extreme weather events in terms of farming, farmers are absolutely on the front line of climate change, which then has a flow-on effect on growing our food and fibre for not only the state but indeed the nation and what we export as well to the world. We need to be ambitious and get on with this job. We have not got really any time to waste – and speaking of waste, we had a federal government that wasted 10 years in this space. They were closet climate change deniers. They pretended to do something when they did absolutely nothing. I feel it is a little bit the same here, where the opposition say some really nice things in this place but have no policies to address energy security.

A member: What about nuclear power?

Alison MARCHANT: Well, they have some solutions maybe – absolutely ridiculous, really – but they also had a policy of gas at the last election. They said that they would turbocharge gas. Coming from a background with a fracking campaign, it is clear that there is no proven and probable amount of gas that would be able to be extracted in Victoria onshore without fracking. At the unconventional gas inquiry the lead scientist said there was no proven and probable gas. I sat on the advisory panel and know that there is no proven probable gas. We know renewables are our future. We know that that is where the investment needs to go, and I am really proud to be part of a government that listens to the science and directs us to the right avenues to really be looking towards the future for a cleaner and greener energy-secure future.

Darren CHEESEMAN (South Barwon) (16:14): It is with some pleasure that I rise to make my contribution on the State Electricity Commission Amendment Bill 2023. I must say in doing so I reflect on the history of the State Electricity Commission. I can very much remember the 1990s, when I was at school, and we had the election of a Kennett government. That Kennett government went about privatisation of the energy generation assets that our state had. I must say, when I reflect on that moment in history and the task that we have as a state to decarbonise our economy, to build the renewable energy capacity that our state needs and indeed to build a modern distribution system that is fit for purpose, the absolute reality dawns on me that if we had not had that period of a conservative government that went about privatisation to multinationals of our energy assets in this state and indeed the distribution system of this state, the task that our government has right now to build a fit-for-purpose energy system for our state would be so much easier.

Indeed given that history of the Liberal Party in the 1990s, we of course have a much more difficult task now. Every single time we have a debate in this place on the energy needs of our state, time and time again we see the Liberal Party and the National Party getting in the way of the important reform that we need to undertake to build the energy generation capacity that our state needs and indeed the distribution network that our state very much needs. That is the history of the Liberal Party and that is the history of the National Party. Every single time we have a debate in this place they come up with new ways as to why we cannot do it and new ways as to why we should not do it. Every single time they look to support the dirty, coal-fired generators, the gas generators, of this state, and at every single opportunity they throw up other things such as nuclear power. I must say, I was absolutely outraged to see that Peter Dutton, if he is elected as Prime Minister of our country, will insist on two nuclear energy generators in our state, one of which will be in Anglesea and one of which will be out in Gippsland. I find that absolutely unbelievable – that the alternate Prime Minister to Anthony Albanese wishes to –

Danny O’Brien: On a point of order, Acting Speaker, I am not sure what the federal opposition’s policy position on nuclear has to do with the State Electricity Commission. I would ask you to bring the member back to the bill.

The ACTING SPEAKER (Daniela De Martino): This has been a very wideranging debate. I have listened to many contributions, and nuclear has been discussed.

Darren CHEESEMAN: What we have seen over here is again another example of a protection racket for nuclear energy in this state coming from the member for East Gippsland. No-one, not one single Victorian –

Danny O’Brien: On a point of order, Acting Speaker, the member for Barwon South should know that members need to be referred to by their correct titles.

The ACTING SPEAKER (Daniela De Martino): Member for Barwon South, please refer to members using their correct titles.

Darren CHEESEMAN: Indeed. As I was saying, the only policy that we can see from the Liberals and the Nationals right across the Australian spectrum with respect to the need to move away from coal-fired power is nuclear energy. That is the only policy proposition in the energy space that they have on the table right now. Now, they will get in the way at every single opportunity of the things that we are trying to do to build a modern, fit-for-purpose energy system in this state – to build renewable energy in this state.

The very important thing, a key policy in this state, is to restore and bring back our public ownership of the State Electricity Commission, and that is what we are doing. We want to create a circumstance where we generate renewable energy that is owned by Victorians for Victorians, and that is what we are doing. The only policy proposition from the conservatives in this state is nuclear energy. I mean, that is outrageous. Certainly the people of the Surf Coast, of Anglesea and of Gippsland do not want nuclear energy in this state.

A member interjected.

Darren CHEESEMAN: That is right. I must say I was curious when all of this debate happened what the member for Polwarth might think about having in his backyard, effectively, nuclear energy. We have heard absolutely no contribution from him. Where is he? There is absolutely no contribution from him – silence, absolute silence in the electorate, absolute silence from him on nuclear energy.

For my purpose, we are going to continue to make those important investments that our state needs. We are going to continue to put solar panels on people’s roofs. We are going to continue to facilitate the development of onshore wind. We are going to continue to work at every opportunity to build offshore renewable energy in this state. And the only policy proposition that the coalition have in this state and indeed in this country is nuclear energy. It is the only thing you stand for. The only thing that the coalition stand for in this state is the development of nuclear energy. That is the only thing.

In my electorate people continue to take up opportunity after opportunity to have solar panels on their roof. Every time I drive past the electorate of Point Cook, I see solar panel after solar panel helping support those families with the cost of living, putting energy back into their hands at every single opportunity. We will continue to make those investments. We will continue to see this developed. The reason why it is so important is not only is it important to decarbonise our economy, we are in an energy race globally. That is the absolute reality. And countries that make the investments early, countries that invest in these new technologies, countries that build a fit-for-purpose energy network to help supply energy are important for households, but importantly putting in place that infrastructure is important to drive down energy costs for families and for businesses. That is what we are going to continue to do.

Restoring the State Electricity Commission is going to create investment opportunities. It is going to create jobs for Victorians where we can generate energy offshore and onshore and where we provide a secure pipeline of energy for our state. The coalition may continue to want to see nuclear energy in this state, but no Victorian does.

Sarah CONNOLLY (Laverton) (16:24): I assure you this afternoon there will be no shouting from me on this side of the house. I am simply going to be talking about the wonderful, wonderful, wonderful thing that this Labor government is doing. We are bringing back the SEC, as our wonderful Premier talks about. We are not just talking about climate action and other things on this side of the house, we are taking real action. We are making legislative reform in this place. We are enshrining the SEC into our constitution, and it is a great deal of pleasure to rise to speak –

Danny O’Brien: On a point of order, Acting Speaker, I note your earlier ruling that I was not able to speak on this bill because I had already spoken on the cognate debate about the constitution, and I note the member is now speaking about the constitution bill and should come back to the State Electricity Commission Amendment Bill.

Vicki Ward: On the point of order, Acting Speaker, and I do recognise the frustration of the member regarding the speaking list for this debate; however, as you have already indicated, it is a wideranging debate that covers a number of issues on which our members on this side of the house are quite passionate, and I am sure they will relish the ability to continue to speak on it.

The ACTING SPEAKER (Daniela De Martino): It has been a very wideranging debate, and I will allow the member’s contribution.

Sarah CONNOLLY: I do forgive the member for Gippsland South for clipping me in my first 60 ‍seconds of just trying to say how great it is to be standing here this afternoon at the end of a long parliamentary sitting week to talk about something that is truly great that the Allan Labor government is doing for the whole of Victoria to create a fairer and more equitable Victoria whilst also taking real action on climate change. And it is legislation like this, this afternoon, that reminds me of why we are in the business of governing. We are in the business of governing in this state for all Victorians. We are in the business of governing. We have big plans. We have been in government now for almost a decade and we still have big plans. There is still so much more we have to do, and we are getting on and doing it. And this bill before the house this afternoon is very much part of that. Because what I say to my community time and time again is, ‘We are bringing back the SEC,’ and this is part of it. We are going to deliver a public energy supplier back into the hands of all Victorians, and that is something that any government that has that kind of vision should be proud to call their legacy. This is a legacy policy. We are making it happen, and that is what this bill is all about.

We know that the biggest enduring legacies of those opposite when they were in government were, yes, cuts and, yes, sell-offs that took place during the Kennett years. And what the member for Gippsland South may not know about little old me is that I was not here during the Kennett years, but when I am out there on the front line talking to my community, they remind me of the Kennett years time and time again. They remember. Folks in Melbourne’s west remember, and they talk about cuts and they talk about sell-offs. During the election in 2022 out on the hustings a lot of them talked to me about the importance of bringing back the SEC and what that meant to them.

Danny O’Brien interjected.

Sarah CONNOLLY: People have a real, emotional – emotional, member for Gippsland South – connection to this policy. It means the world to them because they never wanted to see it sold off in the first place, and we are bringing it back. That is a legacy policy of the Allan Labor government. We are doing it.

What we know is that privatisation has been an utter fail for Victorians. Victorians do not like privatisation, and at the time it was sold off the SEC was far, far from being a financial drag on the Victorian budget. Actually it was quite the opposite, and I think it is important to point out that in 1994 it actually paid $990 million in interest.

Danny O’Brien interjected.

Sarah CONNOLLY: It provided a $191 million dividend to the state government, and, member for Gippsland South, you will be very pleased to know it had a $207 million profit for the state. This is really important stuff. If you ask me, common sense would say that is not the kind of asset that you sell off if you are a government whose focus is on fixing debt.

It has been 30 years since this sale took place in 1994, and since then the energy providers that replaced the SEC have raked in, get this – I mean, I am smiling, but this is not funny, this is just quite shocking ‍– more than $23 billion in profits, and all the while Victorian mums and dads are left dealing with soaring energy bills. Something has got to change, and you need a government to have vision and to have the tenacity to go ahead and make that vision a reality, and this is it. Victorians deserve to have affordable renewable energy powering their state and powering their homes. We know it is cheaper and we know it is cleaner, and that is what our government has been supporting for the past nine years. That is indeed what Victorians have been voting for and continued to vote for over the past three elections. We know because we are out there talking to people, and when we raise these things, this is the stuff that matters. This is what the Victorian people want.

Last sitting week I was here in this place again talking about the incredible work that our government has done investing in renewable energy. It feels like we are talking about renewable energy every single sitting week here in this place, which I am not going to say is a problem – it is a wonderful thing to have, a great problem to have. We are talking about it all the time because we are doing so much work. We passed legislation that boosted our government’s new and ambitious emissions reduction targets and renewable energy targets. These targets would not have been possible without our government’s massive investment worth more than $3 billion since 2018. At the end of last year when these pieces of legislation were introduced into Parliament we were sitting at 5280 megawatts of large-scale wind and solar capacity; 4030 megawatts of small-scale rooftop solar capacity, probably thanks to my crew out in Truganina – and the member for Point Cook has just left, but I know that he will indeed try and claim some of that rooftop solar capacity – and 537 megawatts of energy storage capacity. That is huge. We are not stopping there. Good governments should not stop there. We need to keep going, because an additional 1407 megawatts worth of energy projects are currently to this day still under construction, with a further 6129 megawatts worth of projects currently in our pipeline.

This transformation is absolutely huge, and Victorians will reap the benefits of these projects through the rejuvenated SEC, which will actively invest, importantly, in the renewable energy market by funding and operating renewable energy infrastructure. The investment is not only great for meeting these renewable energy targets; it will also translate – and this is what those opposite hate most – into cheaper power bills for all Victorians, and the SEC will only build upon these investments. And we have already begun. That is what this bill here before the house today is. Our government has already invested $1 billion to get it started with delivering 4.5 gigawatts worth of renewable energy and storage projects. On 25 October last year our government registered the SEC, most importantly, with ASIC. In November the SEC was declared as a state-owned company, and as we speak, the SEC’s first project is already under construction.

To my very pleasant surprise – and I always claim this, because I love being able to talk about the western suburbs – it is being built in the west. A 1.6-gigawatt battery is being built in my lovely neighbour the member for Melton’s electorate, which when complete will be able to power over 200,000 homes. That is just absolutely extraordinary. This is just the beginning, and this is what good governments, long-term Labor governments, are able to deliver for Victorians. It is about delivering fairness and equality, lowering those power prices and taking real action for climate change. This is the stuff that matters. This is the sort of stuff that our children and our grandchildren will benefit from. There are so many more things, but I will commend the bill to the house.

Chris COUZENS (Geelong) (16:34): I am delighted to rise to contribute to the State Electricity Commission Amendment Bill 2023. I want to take this opportunity to thank the minister for all of her work. I know that in my community of Geelong my constituents love the fact that we are bringing back the SEC. Once the announcement was made, throughout the election campaign and afterwards people were talking to me about how delighted they were to see that come back. The fact is that the Kennett government sold off Victoria’s energy supply to private multinationals, and as we heard from the previous speaker, $23 billion in profits are going overseas because of that sale that was made in 1994.

I was listening to the member for Laverton talk about the impact on her community – from what she heard because she was not around. Well, I was actually around. I was a young activist at the time marching with the unions, rallying to try and stop Kennett from selling off the SEC. In my community ‍– and I am assuming it was right across Victoria – we had the office of the SEC, which had a shopfront. When your electrical goods broke down, you could go in there and pay it off on your SEC bill. For many of us, including my family, it was a real game changer, because we could not afford to go out and buy new whitegoods if they broke down or a new heater, but you could go in there and know that you could pay that off on your power bill and continue to look after your family. They were really important initiatives that were going on at the time that helped people who were finding it really difficult to manage, people living in poverty who could not do without their hot water or their heating or any other whitegoods. They were able to get it from their local SEC shop. I do remember those days and how important it was to our community and the rallies and protests that went on at the time.

I also remember St Laurence in particular did a report that actually outlined the damage that would be done if this were sold off and was basically asking the Kennett government at the time not to sell it off. The evidence was there that it was not losing money. It was not debt ridden, as the government was saying at the time; it was actually making record profits. Those opposite can whinge all they like and harp on all they like, but it is history that the Kennett government sold the SEC in 1994. You can say whatever you like; it is not going to make any difference.

Jackson Taylor: The Victorian people know that Kennett sold it off.

Chris COUZENS: Exactly. I note the comments made by the Brotherhood of St Laurence in their report The Restructuring and Sale of Victoria’s Electricity Industry: Is It Worth It?, which was published. Their report outlined that:

The data readily available on the SEC’s performance and used by advocates of industry reform do not support the Government’s assessment that the SEC had too much debt, had prices that were too high or was very inefficient:

• the SEC debt burden was under control and does not appear to have been an issue of substance or requiring government intervention;

• Victorian electricity prices had been falling in real terms over the 1980s and remained low in global terms and amongst the lowest in Australia;

• measured against the benchmarks of capital and labour productivity seen by the advocates of microeconomic reform as indicating ‘best practice’, the SEC’s improvement was rapid and ahead of most other states so that by 1992–93, it had captured most of these potential benefits …

It then went on to say:

Given uncertain benefits, existing problems and some serious risks, the Brotherhood of St Laurence, along with other church and welfare organisations, has proposed that the Government suspend its planned sales of electricity assets pending a public inquiry. Given widespread dissatisfaction in the community over the sale, this remains the most appropriate way of reassuring the public and is likely to provide an important insurance that the restructuring will achieve the best long-term outcomes for Victorians, particularly those on low-incomes …

Well, we know what happened – Kennett went ahead and sold it anyway. So we are committed to bringing back the SEC as a publicly owned 100 per cent renewable energy market participant, and we have delivered that.

The changes in this bill – the bill will abolish the pre-existing State Electricity Commission of Victoria, the SECV, which is constituted under the State Electricity Commission Act 1958 to avoid confusion with the new SEC entity. It also further amends the Electricity Industry (Residual Provisions) Act ‍1993 and other acts to remove or clarify all remaining references to the old SECV. Following the privatisation of Victoria’s electricity supply industry in the 1990s, legislation was enacted that has effectively limited the old SECV’s role to managing any residual property rights and liabilities from its previous operators. Currently the SEC act provides that the old SECV consists of an administrator. This office-holder, currently the Secretary of the Department of Energy, Environment and Climate Action, is responsible for the administration of residual assets and liabilities of the old SECV. The old SECV effectively has no employees and for practical purposes is no longer an operating entity under the State Electricity Commission Act 1958. Abolishing the old SECV will allow the new SEC to operate without causing confusion between the pre-existing entity and the new SEC.

The new SEC will invest with industry to accelerate our transition to more affordable and reliable renewable energy. We know that this also means more jobs in the renewable energy space. What we saw back in the 1990s was a devastating impact on those workers in the energy area who were working for the SEC, whose jobs were just wiped out. We are now bringing back the SEC, but we are also making sure that there are jobs and that the skills and training required for those jobs will be there to support our communities. I know many in my community of Geelong are looking forward to seeing that happen, to seeing those jobs created and to seeing that training and skills pathway provided to ensure that people in my community and right across Victoria have access to those job opportunities.

We are getting on and building up the SEC, putting power back in the hands of Victorians and accelerating our transition to cheaper, more reliable renewable energy. Yes, it is about bringing back the SEC, but it is also about climate change. It is also about renewable energy, which we know we need to be working towards. This government’s commitment to that is leading the way in this country, we know that. Construction has already begun on the SEC’s first project, a 1.6-gigawatt battery in Melton with Equis Australia. It will power over 200,000 homes. By storing excess cheap renewable energy in batteries, homes and businesses will utilise more cheap renewable energy. By powering the state through more renewables more often, we avoid the reliance on expensive coal and gas which causes the high bills that we pay now.

Again, my community is really excited about the fact that we are bringing back the SEC, that we are using renewable energy but also reducing the cost of energy for them and their families. We know the cost of living is impacting on all of our communities, there is no doubt about that. But we can see the plan that the Victorian government has in terms of renewable energy and what it means to bring back the SEC – what it means for jobs, what it means for climate change and what it means to all of our communities. The fact is that we will have the skills and training facilities to ensure that people are being skilled up and trained in these jobs. So this is a great bill. It is a great opportunity for all of our communities right across Victoria. I commend the bill to the house.

John MULLAHY (Glen Waverley) (16:44): It is a pleasure to rise and speak in favour of the State Electricity Commission Amendment Bill 2023, which is part of our legislative package to bring back the mighty SEC. There is so much work underway across government in this space as we work towards our accelerated net zero and renewable energy targets. In fact just last sitting week in this place we voted to enshrine the boldest renewables targets in our state’s history – and I want to thank the Minister for Energy and Resources and Minister for Climate Action for all the work that she is doing in this space. We were lucky enough to sit down with her yesterday and go through what our plan is right up until 2035 and how we will accelerate that net zero and put more renewable energy into Victoria. It is something that I have had concerns about. I studied atmospheric physics at uni and was able to get a –

A member interjected.

John MULLAHY: Yes, there you go. And this was 20 years ago, when the science on climate change was fully understood and fully developed 30 years before that, so for 50 years we have understood the dangers of climate change and how we need to take action on this issue. We are on this bold journey not because it feels nice or it is morally the right thing to do, which it absolutely is; we are on this journey because it presents huge opportunities for our great state, our economy, our environment and our people.

As a government we have a strong track record of delivery in this state. Since 2020 we have invested more than $3 billion into climate action and the renewables transition, and the results are already clear, with 38 per cent of electricity generated from renewables last year. We are well on track to meet and exceed our emissions reduction target of 40 per cent by 2025. This does not happen by accident, it happens when Labor governments take bold action, and the contrast could not be clearer with the Victorian Liberal Party, which all but banned wind farms when they were in government, and the Greens political party, which is talking a big game but has not delivered a single wind turbine or solar panel. Only Labor is serious about real climate action, and we are not holding back when it comes to decarbonising our economy.

Bringing back the SEC is an important piece of this puzzle. What started as a state entity to free Victoria from imported fuels back in 1918 transformed our economy and delivered quality stable jobs for thousands of Victorians – and I would like to give a shout-out to the member for Tarneit for his wonderful historical analysis of Sir John Monash and the SEC yesterday – that was until the Victorian Liberals came along and ripped it out of Victorians’ hands, creating a vacuum that was only exploited by multinational power companies. It is these energy companies that have made billions of dollars – $23 billion I believe – in profits on the back of Victorian families, and it is these companies that are now getting up and leaving as their ageing coal generators shut down. The Allan Labor government has drawn the line, because enough is enough.

In 1918 the SEC was created to support Victorians to shift from imported fuels, and in 2024 the SEC is back to support the next major shift – to renewables and a decarbonised economy. It is an enormous opportunity to drive significant renewables investment into Victoria, to protect our planet by driving down emissions and, most importantly, to create thousands of great, quality jobs for Victorians. That is something I want to focus on in my contribution today, because the bill before us is more than just the proposed legal changes to bring back the SEC, it is a milestone for electrical workers in our great state, creating a bright future for thousands of Victorians, because the creation of the SEC is set to bring about the biggest boom in electrical trades work in a generation, building on the work underway in our existing pipeline of the Big Build projects.

I would like to thank the electricians that are working on the Metro Tunnel and the West Gate Tunnel and all those set to work on the North East Link and the Suburban Rail Loop East. I would also like to give a shout-out to all the members of the mighty Electrical Trades Union in my district of Glen Waverley and indeed across Victoria, who fought hard for this win for workers, because over the coming years as we continue to invest and build up the new SEC the Allan Labor government is set to create more than 59,000 jobs, including 6000 traineeships and apprenticeships.

At the start of my career I was a formworker in my dad’s small business. I knew how much it meant to have a stable pipeline of work, and I am beyond excited for all the sparkies and linespeople and renewables workers that are set to benefit from a stable career in the energy sector as the SEC grows in the years to come. There is a power of work already underway, with SEC Victoria Pty Ltd formally established and the strategic plan complete. The SEC is making its first investments of $245 million into the Melbourne renewable energy hub big battery, creating more than 155 jobs and 14 apprentice jobs and trainee roles. That is great news, and it is only the start, with more than a hundred registrations of interest received for our initial pioneer investment.

With such a massive pipeline of work it is important we invest in a pipeline of workers, and that is why the Allan government has just last weekend released a consultation paper for the Victorian energy jobs plan. It is a guide to conversations with unions, TAFEs, industries and employers, including the SEC, about how we can deliver the workforce, the educational pathways and the local benefits and market confidence we need moving forward. I encourage all stakeholders to engage with this consultation paper and help shape the Victorian energy jobs plan we need for a brighter future. We are also working hard to set up the SEC centre for training excellence, with a power of work now underway, including engagement with industry and traditional owners on centre design and work on a detailed business case. With all this work happening we are set to begin implementation for the next year.

When put together, the SEC is not just going to be an investor, creator and retailer of renewable energy; it is going to deliver the largest scale change to the energy sector in modern Victorian history. That is absolutely a win for my community, keeping the lights on with cheap, sustainable Victorian renewable energy, all the while creating thousands of great union jobs. It is for all these great reasons that I am proud to be the member for Glen Waverley and a member of the mighty Electrical Trades Union, and I commend the bill to the house.

Luba GRIGOROVITCH (Kororoit) (16:51): Acting Speaker De Martino, can I say you are doing a great job and you look wonderful in purple today in International Women’s Week, so well done to you.

I could not be happier to speak on this legislation today, because if you did not know, Labor is bringing back the SEC, and how good is that? Those of us on this side of the chamber know why we are here. We are here because in 1994 Jeff Kennett’s Liberals, the same Liberals in front of us today, sold off the SEC after they put it in front of the privatisation firing squad in 1992. That is right; the privatisation firing squad was up ready to go, and they were going for the SEC. It was an act of utter economic vandalism and an absolute kick in the teeth to not only the workers but generations of working Victorians which continues to hurt them to this very day. The SEC, as we know, was privatised by Kennett to be sold to private multinationals. Thousands of workers were sacked. Power prices – well, what happened to them?

John Mullahy interjected.

Luba GRIGOROVITCH: They went up; that is correct. They went up, and it is Victorian families who have been paying the price. Now, how much do you think that price was? It was $23 billion in profits going not here in Australia but overseas, and we are still counting. It is criminal, and quite frankly, it should never have happened. But no more – guess why? The SEC is back. Labor committed to bringing back the SEC as a publicly owned, 100 per cent renewable, active energy market participant, and Labor has delivered. We are going to continue delivering. I am so proud that my party has done that. I am also delighted to give a shout-out to the mighty Electrical Trades Union and of course their members, the thousands of sparkies and electrical workers of our great state. Without the ETU’s advocacy and campaigning the SEC would not be happening today.

Following the privatisation of Victoria’s electricity supply industry in the 1990s, legislation was enacted that effectively limited the old SECV’s role to managing any residual properties, rights and liabilities from its previous operations. Abolishing the old SECV will allow the new SEC to operate without causing confusion between the pre-existing entity and the new SEC. As many of us here would know, on 25 October last year SEC Victoria was registered with ASIC as a proprietary limited company under the Corporations Act 2001. On 14 November last year the SEC was declared a state-owned company under the State Owned Enterprises Act 1992. The Premier and the Treasurer each hold one share in the SEC. Can I say the SEC will always be a government owned or controlled entity, and this is reflected in the bill’s requirement for the state to always fully own and control the SEC, which of course is good news for bills and cost-of-living pressures. The new SEC will invest with industry to accelerate our transition to more affordable, reliable and renewable energy.

Those opposite have given a running commentary on this project, saying that it would have happened anyway. This project, quite frankly, would not have happened today without the reintroduction of the SEC, and that is a fact. Let us be clear: because of the SEC this project is happening sooner, is bigger and enables more renewables to come into the system. The SEC’s investment has brought forward delivery of this project and upscaled one of its storage components from 2 to 4 hours beyond what the market would have otherwise delivered. And do not just take the government’s word for that; the managing director of Equis, the SEC’s partner in delivering the project, said that the partnership had delivered results quicker than they had anticipated and that:

If the Premier and the Minister would allow me, I’d … apply it right across the region.

With over 100 companies lining up to partner with the SEC, there is plenty more to come. The Allan Labor government has created over 5100 jobs in large-scale renewable energy since it was elected in 2014. We have staggeringly ambitious offshore wind targets of at least 2 gigawatts by 2032, 4 ‍gigawatts by 2035 and 9 gigawatts by 2040. Our energy storage targets are at least 2.6 gigawatts by 2030 and at least 6.3 gigawatts by 2035. The new State Electricity Commission is the next step to a future when energy and electricity is cheap and publicly owned, as it always should be – unlike Jeff Kennett would have had you believe back in 1994 when he sold it off.

There is so much that I can talk about with the SEC. It really is fantastic. It is not always the easy thing to do, but it is the right thing to do, and it is what Labor has done. In fact sometimes the SEC, as we know, will play an important role as a one-stop shop to help Victorians get off fossil gas and electrify. The SEC will start with pilot solutions this year before rolling these out to all Victorians, and while those opposite want to lock Victorians into expensive fossil gas bills, Labor is helping them slash their bills with more affordable and more reliable renewable energy.

Let us talk about the huge new workforce that our new SEC will generate – no pun intended. I know that many of my colleagues around this chamber have spoken about the new workforce that will be created, and I am told it is 59,000 jobs as well as 6000 apprentices and trainees by 2035. This is something phenomenal that is coming to Victoria. We know that the SEC is the right thing to do. We know that it is going to be wonderful for us, and we know that privatisation has to be off the cards, because unlike Jeff Kennett in 1994, we want to make sure that we are not privatising things. Those opposite would have us believe that privatisation is the way to go, but we on this side of the chamber know that that is just simply incorrect. We know that the SEC coming back is going to create 59,000 ‍jobs, 6000 trainees and a number more union members. The mighty Electrical Trades Union has done a phenomenal job in ensuring that they get out there and unionise their worksites. We know that when worksites are unionised, they are a lot safer, and health and safety on the job is absolutely paramount. Again, I could not commend the bill more to the chamber.

Meng Heang TAK (Clarinda) (16:58): I am delighted to make a contribution today on the State Electricity Commission Amendment Bill 2023, another very important bill that is, in conjunction with the Constitution Amendment (SEC) Bill 2023, helping to give effect to the government’s two election commitments to revive the State Electricity Commission and to enshrine the new SEC in the Victorian constitution. As we know, this is one of the important, significant commitments that we put to the Victorian people in 2022 – a commitment that brings back the SEC as a publicly owned, 100 per cent renewable, active energy market participant. It is a commitment that we have delivered, with the SEC registered with ASIC and declared a state-owned company and, most importantly, with the first project under construction. This is an important milestone for Victoria and for my community because it is good news for bills and for cost-of-living pressures.

The SPEAKER: Order! The time set down for consideration of the remaining items on the government business program has arrived, and I am required to interrupt business.

Assembly divided on motion:

Ayes (56): Juliana Addison, Jacinta Allan, Colin Brooks, Josh Bull, Anthony Carbines, Ben Carroll, Darren Cheeseman, Anthony Cianflone, Sarah Connolly, Chris Couzens, Jordan Crugnale, Lily D’Ambrosio, Daniela De Martino, Gabrielle de Vietri, Steve Dimopoulos, Paul Edbrooke, Eden Foster, Matt Fregon, Ella George, Luba Grigorovitch, Bronwyn Halfpenny, Katie Hall, Paul Hamer, Martha Haylett, Sam Hibbins, Mathew Hilakari, Melissa Horne, Natalie Hutchins, Lauren Kathage, Sonya Kilkenny, Nathan Lambert, Gary Maas, Alison Marchant, Kathleen Matthews-Ward, Steve McGhie, Paul Mercurio, John Mullahy, Tim Pallas, Danny Pearson, Tim Read, Pauline Richards, Tim Richardson, Ellen Sandell, Michaela Settle, Ros Spence, Nick Staikos, Natalie Suleyman, Meng Heang Tak, Jackson Taylor, Nina Taylor, Kat Theophanous, Mary-Anne Thomas, Iwan Walters, Vicki Ward, Dylan Wight, Gabrielle Williams

Noes (26): Brad Battin, Jade Benham, Roma Britnell, Tim Bull, Martin Cameron, Annabelle Cleeland, Chris Crewther, Wayne Farnham, Sam Groth, Matthew Guy, David Hodgett, Emma Kealy, Tim McCurdy, Cindy McLeish, James Newbury, Danny O’Brien, Kim O’Keeffe, John Pesutto, Richard Riordan, Brad Rowswell, David Southwick, Bridget Vallence, Peter Walsh, Kim Wells, Nicole Werner, Jess Wilson

Motion agreed to.

Read second time.

Third reading

The SPEAKER: The question is:

That this bill be now read a third time.

Assembly divided on motion:

Ayes (56): Juliana Addison, Jacinta Allan, Colin Brooks, Josh Bull, Anthony Carbines, Ben Carroll, Darren Cheeseman, Anthony Cianflone, Sarah Connolly, Chris Couzens, Jordan Crugnale, Lily D’Ambrosio, Daniela De Martino, Gabrielle de Vietri, Steve Dimopoulos, Paul Edbrooke, Eden Foster, Matt Fregon, Ella George, Luba Grigorovitch, Bronwyn Halfpenny, Katie Hall, Paul Hamer, Martha Haylett, Sam Hibbins, Mathew Hilakari, Melissa Horne, Natalie Hutchins, Lauren Kathage, Sonya Kilkenny, Nathan Lambert, Gary Maas, Alison Marchant, Kathleen Matthews-Ward, Steve McGhie, Paul Mercurio, John Mullahy, Tim Pallas, Danny Pearson, Tim Read, Pauline Richards, Tim Richardson, Ellen Sandell, Michaela Settle, Ros Spence, Nick Staikos, Natalie Suleyman, Meng Heang Tak, Jackson Taylor, Nina Taylor, Kat Theophanous, Mary-Anne Thomas, Iwan Walters, Vicki Ward, Dylan Wight, Gabrielle Williams

Noes (26): Brad Battin, Jade Benham, Roma Britnell, Tim Bull, Martin Cameron, Annabelle Cleeland, Chris Crewther, Wayne Farnham, Sam Groth, Matthew Guy, David Hodgett, Emma Kealy, Tim McCurdy, Cindy McLeish, James Newbury, Danny O’Brien, Kim O’Keeffe, John Pesutto, Richard Riordan, Brad Rowswell, David Southwick, Bridget Vallence, Peter Walsh, Kim Wells, Nicole Werner, Jess Wilson

Motion agreed to.

Read third time.

The SPEAKER: The bill will now be sent to the Legislative Council and their agreement requested.