Energy policy
David DAVIS (Southern Metropolitan) (18:28): (1667) My matter tonight is for the attention of the Minister for Energy and Resources, and it relates to the strong but clear comments, the well-founded comments, by Santos chief executive Kevin Gallagher, who did clearly attack the Victorian government’s energy policy. He said the state’s attitude towards investment was similar or akin to North Korea, warning clearly that the state’s approach will lead to projects going offshore. There is mounting frustration, as he said, in the resources sector over Victoria’s very aggressive approach to fossil fuels, but particularly its attack on gas. It has declared war on gas. There is no question about that. It has banned gas on new estates. It is in the process, through a regulatory impact statement – a flawed regulatory impact statement – of banning gas, seeking to ban gas in homes much more broadly, and replacing appliances both in rented premises and indeed in a whole range of new locations as well. This war on gas is a silly approach by this government. The government initially had exploration banned. They say that is removed now, but actually the government have jacked up fees and charges. The government has made it more difficult to actually get exploration underway. There has not been one new exploration permit issued in Victoria since 2013. Three of those permits were issued in Victoria in 2013, but not one new permit for exploration for gas since.
We have got a declining gas volume coming out of Bass Strait. The state needs gas. We need it for several reasons. We need it to make sure that we have got proper peaking capacity with our electricity so that when there is not sufficient wind or there is not sufficient solar, there is sufficient gas to provide that peaking capacity. At the same time we need to make sure that gas is also there for homes. The government’s proposal through its regulatory impact statement will see suburban homes across the state actually left cold and improperly or inadequately heated. Young people and kids will be left with cold bedrooms. This will be a frightening outcome for many in the community.
Our plan is very clear. We want to see gas brought forward. We want more exploration. Gas has got a very important role to play. What I want the minister to do is to sit down with the energy producers association and others in the gas industry and change her views.