Tuesday, 12 August 2025

Questions without notice and ministers statements

Energy policy

David DAVIS (Southern Metropolitan) (12:05): (989) My question is to the Minister for Regional Development. Will the minister confirm that as regional development minister she was consulted on and approved the decision of Solstice Energy to walk away from their contract to provide gas to 10 regional towns, including many in northern Victoria?

Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:05): Mr Davis, I was put in a position as Minister for Regional Development to approve the changes in relation to Solstice. Solstice brought to government some advice in relation to their decision to close their compressed natural gas network because they deemed it was not economically viable. The compressed natural gas network was doomed from the start. It was under the National Party’s flawed policy, the Energy for the Regions policy: taxpayer subsidies were committed to building closed-loop pipelines, which required the gas to be trucked in from elsewhere. Solstice customers faced a 50 per cent increase in their bills because of the challenge of supplying the –

Members interjecting.

Renee Heath: On a point of order, President, I think that Mr McIntosh was just using some unparliamentary language.

The PRESIDENT: I hope he was not. There was a bit of yelling from all directions, and I could not hear what Mr McIntosh was saying. Was it a rude word? It was a rude word.

Jaclyn SYMES: Mr Davis, as I was saying, this was a conversation that I was involved in as Minister for Regional Development, but in relation to some of the comments you have made, this is not about a decision that the government made to not connect these communities to gas. I will quote the Solstice CEO, who said that this is not about gas networks, energy policy or the energy transition; it is about shutting down a very expensive network. Shutting it down is the best option.

Of course as Minister for Regional Development I sought advice on what the options were, and the options to proceed with this flawed national policy just did not make sense. It would cost more for the communities of Marong, Maldon, Terang, Lakes Entrance, Orbost, Heathcote, Swan Hill, Kerang, Nathalia and Robinvale. So what we have been able to do is ensure that Solstice Energy, in relation to no longer being able to provide the gas services that the National Party tried to promise people, will provide up-front payments to help families transition to electricity or LPG. And those switching to electricity can also access many of the transition arrangements and payments that we have, such as solar panel rebates, rebates for heat pumps, discounted reverse-cycle air conditioners and discounts on induction cooktops, fridges and freezers.

This was not a decision that was based on any ideological view against gas. This was based on a decision that this could not be provided at a cost that would be remotely affordable for those communities. It is very unfortunate that the policy that the National Party tried to parade around as being good for these communities actually ended up not being so – so bad in fact that it had to be stopped. It was ceased because of Solstice’s decision and because it is better for the consumers, because it would have become unaffordable. People who still want to use gas can bring in bottles. It is what I do at my house for my water. You get hot-water gas bottles delivered, and that is cheaper. It is cheaper.

David DAVIS (Southern Metropolitan) (12:09): We now know that the government is up to its neck in this decision. They are culpable for what has occurred. The minister has now indicated that she agreed to cut the contracted time of gas connections in the 10 regional towns from over 20 years to just over 10. I thereby ask a further question: will the minister confirm that the subsidies – the small payments that are provided – will not exceed $2200?

Jaclyn SYMES (Northern Victoria – Treasurer, Minister for Industrial Relations, Minister for Regional Development) (12:10): Mr Davis, on the preamble of your supplementary question, I just need to make it very clear: your position of continuing with the program would cost people so much more than is remotely affordable. But it has got nothing to do –

David Davis interjected.

Jaclyn SYMES: Continuing the statements that you are making, Mr Davis, does not make them true. If you think that those communities should be paying exorbitant prices because of the failed National Party policy, you go stand in those communities and you tell them that. What we are providing is the ability to get funding to ensure that you can switch to gas bottles or you can go for further energy upgrades.

David Davis: On a point of order, President, it was a very specific question about the $2200 cap. Will the minister confirm the cap on support for those who are having their gas cut off?

The PRESIDENT: I think, amongst the great amount of noise coming from everywhere, I did hear the minister say she rejected the premise of your question, and she has gone on to say why. That is my best understanding, with the noise around the place.

Jaclyn SYMES: What we are doing is helping shield 1200 households from the significant price rises they faced because of the Liberal and Nationals’ failed policy.