Tuesday, 17 June 2025

Energy policy

David DAVIS (Southern Metropolitan) (13:32): (943) My question is for the Treasurer. Treasurer, I refer to budget paper 2 and the sensitivity analysis at page 83 and beyond and other points surrounding the economic context. Did the government examine or model the risk of higher energy costs or the risk of supply interruptions of gas and electricity on its presumptions for Victorian economic growth? If so, what were the conclusions, and if not, why not?

Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (13:33): Thank you, Mr Davis, for your question. In relation to the sensitivity modelling, there are a number of factors that go into that. The granular detail that Mr Davis is referring to I do not have at hand. It was a topic of conversation at PAEC in relation to some of the matters that are factored in, such as interest rate rises et cetera. I would be happy to provide more information for Mr Davis on the broader things that go into the sensitivity modelling. I think that would be more useful than answering the question as you have posed it. Sorry to rephrase your question, but if you want more advice on what goes into the sensitivity modelling, I am more than happy to provide that. But the way, again, the question is framed, it is trying to put a portfolio issue in the remit of the Treasurer’s core responsibilities. I am always happy to be helpful, but I think the more appropriate answer from the Treasurer in relation to the question about the sensitivities of the modelling – I am happy to provide more information to Mr Davis on that.

David DAVIS (Southern Metropolitan) (13:34): I thank the Treasurer for providing that information, specifically about the risks of supply interruptions of gas or electricity. To assist the Treasurer, budget paper 2 does discuss a decline in inflation over the past year and claims this was:

… primarily due to significant drops in automotive fuel and electricity prices, the latter reflecting the impact of temporary government … rebates.

So in one sense I am partially answering the question. Will a surge in gas or electricity prices weaken the government’s inflation projections or will the massive surges in price and the risk of supply interruption seen in the last week have no effect on inflation and the budget’s underpinnings?

The PRESIDENT: There were a couple of questions there and they were both hypothetical. I am going to let the Treasurer answer as she sees fit.

Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (13:35): There were a range of hypothetical situations that Mr Davis was trying to put into a question framed up for the Treasurer. I believe that my answer to his substantive question would satisfy a response to his supplementary.